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Topic: ESG

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European Platform on Sustainable Finance publishes final report and recommendations

On 11 October 2022, the European Platform on Sustainable Finance published a final report on minimum safeguards. It also published platform recommendations on data and usability of the EU taxonomy. The final report advises on the application of minimum safeguards (MS) in relation to Articles 13 and 18 of the Taxonomy Regulation. It does so … Continue Reading

FCA updates webpage on UK SFTR news

On 7 October 2022, the FCA updated its webpage on UK SFTR news. The FCA has updated the webpage by adding a section regarding reporting legal entity identifiers (LEIs) of third country issuers under UK Securities Financing Transactions Regulation (UK SFTR). In this new section the FCA reminds readers that in March it extended a … Continue Reading

Commission Notice on the interpretation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of eligible economic activities and assets

On 6 October 2022, there was published in the Official Journal of the European Union (OJ) a European Commission Notice on the interpretation of certain legal provisions of the Disclosures Delegated Act (Delegated Regulation 2021/2178) under Article 8 of EU Taxonomy Regulation on the reporting of eligible economic activities and assets. The Commission Notice sets … Continue Reading

ESAs propose disclosures for fossil gas and nuclear energy investments

On 30 September 2022, the three European Supervisory Authorities (ESAs) published a final report containing draft regulatory technical standards (RTS) regarding the disclosure of financial products’ exposure to investments in fossil gas and nuclear energy activities under the Sustainable Finance Disclosure Regulation (SFDR). The proposed RTS amend the RTS laid down in Delegated Regulation (EU) … Continue Reading

Net Zero review

On 29 September 2022, the Department for Business, Energy & Industrial Strategy (BEIS) announced that it has commissioned an independent review of the government’s approach to delivering its net zero target. The review will assess the economic co-benefits associated with different policies and how the government can drive down the cost curve for net zero … Continue Reading

European Commission announces plan to ensure complete and timely transposition of EU directives

On 21 September 2022, the European Commission announced its plan to ensure complete and timely transposition of EU directives. The Commission is adopting a package of infringement decisions due to the absence of communication by Member States of measures taken to transpose particular EU directives into national law (referred to as ‘non-communication infringements’).  In the … Continue Reading

IOSCO final report on retail investor education in the context of sustainable finance markets and products

Introduction On 31 August 2022, the International Organization of Securities Commissions (IOSCO) published a final report on retail investor education in the context of sustainable finance markets and products. The final report has been prepared by IOSCO’s Committee on Retail Investors which was mandated to identify developments in investor education with regard to sustainable finance, … Continue Reading

New Regulation Tomorrow Plus podcast – ESG: Key regulatory risks in the UK and US and practical steps to manage them

Our latest episode of Regulation Tomorrow Plus is now available to stream and download on ‘Apple podcasts‘ and ‘Spotify‘ In this podcast Katie Stephen, Co-Head of our Contentious Financial Services Group in London, and Celia Cohen, Co-Head of Financial Institutions in the United States, discuss the key regulatory risks for financial services firms in their … Continue Reading

Commission summary report on targeted consultation on the functioning of the ESG ratings market in the EU and on the consideration of ESG factors in credit ratings

On 4 August 2022, the European Commission published a report providing an overview of the results of an earlier targeted consultation on ‘ESG ratings and ESG factors in credit ratings’. Among other things the report notes that: The vast majority of respondents declare that they do use ESG ratings and among these, 77% use them … Continue Reading

ECB publishes consultation response to the EFRAG’s public consultation on the first set of draft European Sustainability Reporting Standards.

On 29 July 2022, the European Central Bank (ECB) published its response to the European Financial Reporting Advisory Group’s (EFRAG) public consultation on the first set of draft European Sustainability Reporting Standards. The response provides the following general remarks: The ECB strongly supports EU efforts to improve sustainability disclosures. The ECB welcomes the progress made … Continue Reading

The FRC and FCA find significant progress, but further improvement needed under new climate disclosure rules

On 29 July 2022, the Financial Reporting Council (FRC) and Financial Conduct Authority (FCA) published two reports which found that premium listed companies have made significant steps forward in the quality of climate related information provided in their financial reports, but further improvements are needed. The first report provided a review of TCFD-aligned disclosures by … Continue Reading

EBA updates webpage on Joint Regulatory Technical Standards on ESG disclosure standards for financial market participants

On 28 July 2022, the European Banking Authority (EBA) updated its webpage on Joint Regulatory Technical Standards (RTS) on ESG disclosure standards for financial market participants. The webpage now makes note that it has been adopted and published in the Official Journal.… Continue Reading

FMSB: Spotlight review: ESG Ratings

On 20 July 2022, the Financial Markets Standards Board (FMSB) published a spotlight review on ESG ratings. The review aims to facilitate additional disclosure and transparency of ESG ratings’ methodologies and data collection processes, in order to enhance user understanding of ESG ratings and facilitate comparability across rating providers in wholesale financial markets. The review … Continue Reading

Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022

On 15 July 2022, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022. It amends Delegated Regulation (EU) 2021/2139 as regards to economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards to specific public disclosures for those economic activities. The … Continue Reading

Progress Report on FSB Roadmap for Addressing Financial Risks from Climate Change

On 14 July 2022, the Financial Stability Board (FSB) published its first report taking stock on the progress made by standard setting bodies and other international organisations on action taken on the Roadmap for Addressing Financial Risks from Climate Change. The Roadmap, which was published in July 2021, sets out a comprehensive and coordinated plan … Continue Reading

Call for feedback on the draft report by the Platform on Sustainable finance on minimum safeguards

On 11 July 2022, the Platform on Sustainable Finance issued a call for feedback on a draft report on minimum safeguards. The minimum safeguards set out in Article 18 of the Taxonomy Regulation require that companies implement procedures to comply with OECD Guidelines for multinational enterprises and the UN guiding principles on business and human … Continue Reading

ECB publishes results of 2022 climate risk stress test

On 8 July 2022, the European Central Bank (ECB) published the results of its 2022 climate risk stress test. The results provide that, banks do not yet sufficiently incorporate climate risk into their stress testing frameworks and internal models, despite some progress being made since 2020. Key findings from the stress test include: Around 60% … Continue Reading

ESG – Key regulatory risks for financial services firms in the UK and US and how to manage them

Investors are increasingly seeking sustainable financial products and ESG investing, traditional investing combined with sustainable or otherwise philanthropic aims, has seen huge growth in recent years. Regulated firms are also seeking to improve their own ESG performance more generally to build stronger relationships with their stakeholders, including those who use their services. Whilst the growing … Continue Reading

FCA consultation on DP21/4 ‘Sustainability Disclosure Requirements and investment labels’ now expected in the autumn

On 4 July 2022, the FCA updated its webpage regarding Discussion Paper 21/4 ‘Sustainability Disclosure requirements and investment labels’. The update states that, originally, the FCA had aimed to consult in Q2 2022 but now it is planning to consult in the autumn so that it can take into account other international policy initiatives and … Continue Reading

Call for input to ESAs regarding greenwashing monitoring and supervision

On 30 June 2022, the European Commission published a letter and call for input (dated 16 May 2022) to the European Supervisory Authorities (ESAs) regarding greenwashing risks and supervision of sustainable finance policies. In July 2021 the Commission adopted the ‘Strategy on Financing the Transition to a Sustainable Economy’ which outlined steps, in cooperation with … Continue Reading

FCA Feedback Statement 22/4 ‘ESG integration in UK capital markets’

On 29 June 2022, the FCA published Feedback Statement 22/4 ‘ESG integration in UK capital markets’ (FS22/4). In FS22/4 the FCA provides feedback on the discussion chapter of Consultation Paper 21/18 ‘Enhancing climate-related disclosures by standard listed companies and seeking views on ESG topics in capital markets’ which covered environmental, social and governance (ESG) integration … Continue Reading
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