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Topic: ESG

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ESMA to launch and participate in CSA on ESG disclosures for Benchmarks Administrators

On 13 December 2023, the European Securities and Markets Authority (ESMA) announced the launch of a common supervisory action (CSA) with Member State competent authorities on ESG disclosures under the Benchmarks Regulation (BMR). This is the first CSA for ESMA in its role as a direct supervisor of benchmarks administrators. The CSA will be carried … Continue Reading

Platform on Sustainable Finance draft report on EU taxonomy aligning benchmarks

On 13 December 2023, the Platform on Sustainable Finance issued a draft report which includes proposals for EU taxonomy-aligning benchmarks. The draft report suggests two proposals for EU taxonomy aligning benchmarks without and with exclusions (EU TAB and EU TABex) with the intention of initiating a discussion on the pivotal role the taxonomy could assume … Continue Reading

D&I jurisdiction summary

In recent years, diversity and inclusion (D&I) in the financial services sector has become a focus for regulators around the world. Individual regulators, however, have taken different approaches to D&I to reflect the local socio-economic environment. Below, we provide a high-level summary of the position across a number of key jurisdictions. Jurisdiction Summary of regulatory … Continue Reading

MEPs adopt significant changes to draft rules on ESG ratings

On 5 December 2023, the European Parliament announced that in the Economics and Monetary affairs committee MEPs, led by the rapporteur Aurore Lalucq (S&D, FR), voted in favour of significant changes to draft regulation proposed by the European Commission on environmental, social and governance (ESG) ratings. The adopted report adds provisions to ensure that rating … Continue Reading

IOSCO consultation report – Voluntary carbon markets

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

IOSCO final report – Supervisory practices to address greenwashing

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

EBA publishes COP 28 statement

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

House of Commons Environmental Audit Committee publishes report on the financial sector and the UK’s net zero transition

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

Basel Committee consultative document – Disclosure of climate-related financial risks

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

FCA publishes final measures on Sustainability Disclosure Requirements and investment labels and consults on guidance

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

FCA publishes speech on culture and conduct

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

ESMA explanatory notes covering key topics of the Sustainable Finance framework

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

Published in the OJ: Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing the Taxonomy Regulation by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, or to the protection and restoration of biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives and amending Commission Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities

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

Published in the OJ: Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023 amending Delegated Regulation (EU) 2021/2139 establishing additional technical screening criteria for determining the conditions under which certain economic activities qualify as contributing substantially to climate change mitigation or climate change adaptation and for determining whether those activities cause no significant harm to any of the other environmental objectives

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

FCA speech on building firm foundations for healthy cultures

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

EBA final templates to collect climate-related data from EU banks

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

FCA publishes results of multi-firm review on embedding of Guiding Principles for ESG and sustainable investment funds

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

TPT consults on sector-specific guidance for preparers and users of climate transition plans

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

NGFS scenarios for central banks and supervisors

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

Latest ESG updater

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

FCA and PRA consultations on D&I in the financial services sector:  An employment law perspective

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
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