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Topic: ESG

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FCA’s new rules on climate-related disclosures to help investors, clients and consumers

On 17 December 2021, the FCA published two Policy Statements confirming final rules and guidance to promote better climate-related financial disclosures. Issuers of standard listed shares, or equity shares represented by certificates (global depositary receipts) must include a statement in their annual financial reports setting out whether their disclosures meet the recommendations of the Taskforce … Continue Reading

Commission proposal establishing a European single access point providing centralised access to publicly available information of relevance to financial services, capital markets and sustainability

On 25 November 2021, the European Commission published a proposal for the Regulation establishing a European single access point (ESAP) providing centralised access to publicly available information of relevance to financial services, capital markets and sustainability. The establishment of a ESAP by 2024 is a main goal of the Capital Markets Union Action Plan adopted … Continue Reading

IOSCO final report ESG Ratings and Data Products Providers

On 23 November 2021, the Board of the International Organisation of Securities Commissions (IOSCO) published a final report with a set of recommendations calling for oversight of ESG Ratings and Data Product Providers. The use of ESG ratings and data products has grown considerably in response to investors’ mounting interest in investing in companies that … Continue Reading

The state of climate and environmental risk management in the banking sector

On 22 November 2021, the European Central Bank (ECB) published a report, ‘The state of climate and environmental risk management in the banking sector’, which assesses how European banks are adjusting their practices to manage climate and environmental (C&E) risks, in line with the expectations set out in the November 2020 ECB Guide on C&E risks. … Continue Reading

Verena Ross keynote speech at the DSW ESG conference 2021

On 19 November 2021, the European Securities and Markets Authority (ESMA) published a speech by its chair, Verena Ross. In her speech Mrs Ross covers three issues: The growing importance of ESG in finance and the risk of greenwashing. The ESMA observes that the rapidly growing demand for ESG products coupled with a  regulatory regime … Continue Reading

IPSF Common Ground Taxonomy package

On 4 November 2021, the International Platform on Sustainable Finance (IPSF) published a Common Ground Taxonomy package consisting of: Instruction report. Common ground taxonomy table. Call for feedback. The IPSF is a multilateral forum that aims to enable the exchange of practices and increase international cooperation on sustainable finance related matters. Part of this work … Continue Reading

European Commission IPSF report on the state and trends of ESG disclosure policy measures across IPSF jurisdictions, Brazil, and the US

On 4 November 2021, the International Platform on Sustainable Finance (IPSF) published a report on the state and trends of ESG disclosure policy measures across the IPSF jurisdictions, Brazil and the US. The report provides an overview of the state of environmental, social and governance (ESG) disclosure related policy measures, including laws, regulations, recommendations and … Continue Reading

Speech given by Erik Thedéen, Chair IOSCO Sustainable Finance Task Force at the Green Horizon Summit

On 4 November 2021, Erik Thedéen, the Chair of the International Organisation of Securities Commissions (IOSCO) Sustainable Finance Task Force gave a speech at the Green Horizons Summit during COP26, to discuss the IOSCO’s recent work on sustainable finance. The IOSCO’s work has focused on issuers and asset managers’ disclosures, alongside the role of ESG … Continue Reading

IIF launches new guidance template to support effective climate disclosures

On 3 November 2021, the Institute of International Finance (IIF) launched a new TCFD Guidance Template to help financial institutions align their climate-related disclosures with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), with a focus on the banking sector. Drawing in observed industry practices, including mapping and benchmarking of TCFD reports … Continue Reading

FCA issues ‘A strategy for positive change: our ESG priorities’

On 3 November 2021, the FCA published ‘A strategy for positive change: our ESG priorities’ which sets out the regulator’s updated ESG strategy following the publication in October 2019 of Feedback Statement 19/6: Climate change and green finance. The FCA’s work is based on five core themes: Transparency: promoting transparency on climate change and wider … Continue Reading

FCA Discussion Paper 21/4: Sustainability Disclosure Requirements and investment labels

On 3 November 2021, the FCA published Discussion Paper 21/4: Sustainability Disclosure Requirements and Investment Labels (DP21/4). DP21/4 follows the publication of the Government’s Roadmap to Sustainable Investing on 18 October 2021. The Roadmap sets out the Government’s ambitions for new economy-wide sustainability disclosures that enable every financial decision to factor in climate change and … Continue Reading

Chancellor announces that the UK will be the world’s first net zero financial centre

On 3 November 2021, the UK government issued a press release stating that the Chancellor is to set out plans for the UK to be the world’s first net zero aligned financial centre, calling for other countries to follow suit. Under the proposals, there will be new requirements for UK financial institutions and listed companies … Continue Reading

IOSCO recommendations on sustainability-related practices, policies, procedures and disclosure in asset management

On 2 November 2021, the International Organisation of Securities Commissions (IOSCO) published a final report containing a set of  recommendations on sustainability-related practices, policies, procedures and disclosure in asset management.  The final report also sets out the findings from IOSCO fact finding exercises that included a survey of its members concerning regulatory and supervisory approaches … Continue Reading

Joint statement by the Financial Conduct Authority, Prudential Regulation Authority, The Pensions Regulator and the Financial Reporting Council on the publication of Climate Change Adaptation Reports

On 28 October 2021, the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA), The Pensions Regulator (TPR) and the Financial Reporting Council on (FRC) released a joint statement concerning the publication of Climate Change Adaptation Reports. Each report sets out how climate change affects the UK financials regulators responsibilities and the actions that they are … Continue Reading

ESAs propose new rules for taxonomy-related product disclosures

On 22 October 2021, the ESAs delivered to the European Commission their Final Report with the draft RTS regarding disclosures under the Sustainable Finance Disclosure Regulation (SFDR) as amended by the Regulation on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation). The disclosures relate to financial products that make sustainable investments contributing … Continue Reading

Climate Financial Risk Forum second set of guides to help the financial industry effectively manage climate-related financial risks

On 21 October 2021, the Climate Financial Risk Forum (CFRF) published its second set of guides to help the financial industry effectively manage climate-related financial risks. The CFRF has been operating since March 2019 and is chaired jointly by the PRA and the FCA, and brings together senior representatives from across the financial sector, including … Continue Reading

NGFS report – Scenarios in action: a progress report on global supervisory and central bank climate scenario exercises

On 19 October 2021, the Network for Greening the Financial System (NGFS) published the report “Scenarios in action: a progress report on global supervisory and central bank climate scenario exercises”. The report sets out how a growing number of NGFS members, across all continents, are using climate scenarios to identify, assess and understand climate risk … Continue Reading

HM Treasury policy paper – Greening Finance: A Roadmap to Sustainable Investing

On 18 October 2021, the HM Treasury published a policy paper titled, ‘Greening Finance: A Roadmap to Sustainable Investing’. The policy paper refers to the government’s long-term goal to green the financial system and align it with the UK’s net-zero commitment. Greening the financial system will be carried out through three phases: informing investors and … Continue Reading

ECB letter to banks – information on participation in the 2022 ECB climate risk stress test

On 18 October 2021, the European Central Bank (ECB) published a letter that it had sent to CEOs of significant institutions providing them with information on participation in the 2022 ECB Climate Risk Stress Test. In the letter the ECB explains that the output of the stress test exercise will be integrated into the Supervisory … Continue Reading

UNEP FI first collective progress report on the UN Principles for Responsible Banking

On 15 October 2021, the United Nations’ Environment Programme Finance Initiative (UNEP FI) published its first collective progress report on the implementation of the Principles for Responsible Banking (PRB). The PRB commit signatories to aligning their business strategies with the Sustainable Development Goals and the Paris Climate Agreement. Since the launch of the PRB in … Continue Reading

TCFD status report for 2021

  On 14 October 2021, the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD) issued a status report for 2021. The status report provides an update on key TCFD-related developments and initiatives as well as the results of the TCFD’s annual review of climate-related reporting. The status report also contains key findings … Continue Reading

CON and ENVI Members voted jointly on Taxonomy objections

On 7 October 2021, the European Parliament issued a press release stating that ECON and ENVI Members had voted jointly to reject a Commission Delegated Regulation which supplements the Taxonomy Regulation by specifying the technical screening criteria under which certain economic activities qualify as contributing substantially to climate change mitigation and climate change adaptation and … Continue Reading

OECD reports on climate transition

On 4 October 2021, the Organisation for Economic Co-operation and Development (OECD) published: A report ‘ESG investing and climate transition: Market practices, issues and policy considerations’. The report highlights the main findings from recent OECD research on ESG rating and investing. It offers policy considerations to strengthen ESG practices to foster global interoperability and comparability, … Continue Reading

Firms and banks to benefit from early adoption of green policies, ECB’s economy-wide climate stress test shows

On 21 September 2021, the European Central Bank (ECB) issued the results of its economy-wide climate stress test. The test looked at the impact of climate change on more than four million firms worldwide and 1,600 euro area banks under three different climate policy scenarios. The results show that, although the effects of climate risk … Continue Reading
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