On 3 December 2023, the International Organization of Securities Commissions (IOSCO) issued a consultation report which provides a general overview of the carbon credits ecosystem and outlines a proposed set of good practices to promote the integrity and orderly functioning of voluntary carbon markets. The 21 good practices relate to regulatory frameworks, primary market issuance, … Continue Reading
On 4 December 2023, the International Organization of Securities Commissions (IOSCO) published a final report, Supervisory practices to address greenwashing. The final report provides a mapping of the regulatory and supervisory approaches and practices (current or planned) by regulators to address greenwashing in the areas of asset managers and ESG ratings and data product providers, … Continue Reading
On 30 November 2023, the European Banking Authority (EBA) published a statement in the context of COP 28. In its statement, the EBA highlights its efforts to integrate sustainability aspects in many areas of its work, including risk management, disclosures, supervisory practices, climate stress testing and the Pillar 1 framework.… Continue Reading
On 29 November 2023, the House of Commons Environmental Audit Committee published its report on the financial sector and the UK’s net zero transition. The report follows an inquiry, launched by the Committee in May 2022 to examine the role of financial institutions in meeting the UK Government’s climate and environment targets. In this report, … Continue Reading
On 29 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultative document – Disclosure of climate-related financial risks. The Basel Committee is analysing how a Pillar 3 disclosure framework for climate-related financial risks would further its mandate to strengthen the regulation, supervision, and practices of banks worldwide with the purpose of … Continue Reading
On 28 November 2023, the FCA published a package of measures setting out its final rules and guidance on Sustainability Disclosure Requirements (SDR) and investment labels. The measures are intended to help consumers navigate the market for sustainable investment products, by improving the trust and transparency of such products and minimising greenwashing. The measures The … Continue Reading
On 23 November 2023, the FCA published a speech by Emily Shepperd, Chief Operating Officer and Executive Director of Authorisations, delivered at City and Financial’s Culture and Conduct Forum. The speech focuses on how to “flex” an organisation’s power through culture. In her speech, Ms Shepperd makes the following comments: For further updates on regulatory … Continue Reading
On 22 November 2023, the European Securities and Markets Authority (ESMA) published three explanatory notes covering key topics of the Sustainable Finance (SF) framework. The explanatory notes are purely descriptive and cover: For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
On 21 November 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to … Continue Reading
On 21 November 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023 amending Delegated Regulation (EU) 2021/2139 (Taxonomy Climate Delegated Act) establishing additional technical screening criteria for determining the conditions under which certain economic activities qualify as contributing substantially to climate change mitigation or … Continue Reading
On 20 November 2023, the FCA published a speech by Sheree Howard, Executive Director of Risk and Compliance Oversight, delivered at the XLOD Global London event. The speech focuses on “building firm foundations for healthy cultures”. In her speech, Ms Howard notes that heightened financial pressures mean making careful judgements around risk but should not … Continue Reading
On 17 November 2023, the European Banking Authority (EBA) published the final templates that will be used to collect climate-related data from EU banks in the context of the one-off Fit-for-55 climate risk scenario analysis. The templates are accompanied by a template guidance, which includes definitions and rules for compiling the templates. Furthermore, the EBA … Continue Reading
On 16 November 2023, the Investment Association and the Thinking Ahead Institute issued a report on equity, diversity and inclusion (EDI) data in the UK investment management industry.… Continue Reading
On 16 November 2023, the FCA published the results of its multi-firm review which tested how authorised fund managers (AFMs) are embedding the ‘Guiding Principles’, which were set out in a Dear Chair letter in July 2021, for ESG and sustainable investment funds. The FCA has published the review ahead of its final rules and … Continue Reading
On 13 November 2023, the Transition Plan Taskforce (TPT) launched a consultation on its sector-specific guidance for preparers and users of climate transition plans. At COP26 in November 2021, the Chancellor announced the establishment of the TPT as part of the UK’s plans to become the world’s first net zero financial centre, ensuring financial flows … Continue Reading
On 7 November 2023, the Network for Greening the Financial System (NGFS) published the fourth vintage of its long-term climate macro-financial scenarios for forward-looking climate risks assessments. The NGFS scenarios explore the transition and physical impacts of climate change over a long time horizon and under varying assumptions. The NGFS scenarios have been updated to … Continue Reading
We have published our latest ESG updater, tracking regulatory developments in the ESG space from 15 September – 13 October 2023. Should you wish to receive the updater please sign up here. For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have recently published consultation papers setting out proposals to promote diversity and inclusion (D&I) in the financial services sector. The papers follow on from the joint discussion paper in July 2021 when the regulators made it clear that firms should consider D&I. This was followed … Continue Reading
On 25 October 2023, the European Securities and Markets Authority (ESMA) published a summary of the findings from a fact-finding exercise on corporate reporting practices under the Taxonomy Regulation (Regulation (EU) 2020/852). As part of its objective to coordinate European supervision and enforcement activities related to disclosures under the Taxonomy Regulation, ESMA collected information from … Continue Reading
On 25 October 2023, the European Securities and Markets Authority (ESMA) published a report: The heat is on: Disclosure of climate-related matters in the financial statements. The report aims to assist and enhance the ability of issuers to provide more robust disclosures and create more consistency in how climate-related matters are accounted for in financial … Continue Reading
In the third podcast in our DE&I series, Simon Lovegrove and Hannah McAslan-Schaaf cover the interplay between the regulatory focus on diversity and inclusion and individual accountability.… Continue Reading
On 13 June 2023, the European Commission (Commission) published a proposal for a Regulation on Environmental, Social and Governance (ESG) ratings. The legislative proposal lays out a regulatory framework for the provision of ESG ratings in the EU. The main aim of the proposal is to improve the transparency of ESG ratings characteristics and methodologies … Continue Reading
In the second podcast in our DE&I series, Simon Lovegrove and Hannah McAslan-Schaaf discuss what firms should be doing in light of the FCA and PRA consultation papers on diversity and inclusion.… Continue Reading
