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Topic: ESG

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FCA consults on extending the remit of Independent Governance Committees

On 15 April 2019, the FCA published Consultation Paper 19/15: Independent Governance Committees: extension of remit (CP19/15). Independent Governance Committees (IGCs) provide independent oversight of the value for money of workplace personal pensions provided by firms such as some self-invested personal pension operators. In CP19/15 the FCA is proposing a new IGC duty to oversee: … Continue Reading

Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change

On 15 April 2019, the PRA published Policy Statement 11/19: Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (PS11/19). PS11/19 is relevant to all UK insurance and reinsurance firms and groups, banks, building societies, and PRA-designated investment firms (collectively referred to as firms). In PS11/19 the PRA provides feedback to … Continue Reading

BlackRock’s CEO emphasizes social impact for a second year in a row in his 2019 letter to investee companies

Earlier this year BlackRock’s Chairman and CEO Larry Fink published his annual letter to the asset management firm’s investee companies. For the second year in a row Fink has focused on social impact. At the beginning of the letter he addresses the importance of practices that “will drive sustainable, long-term growth and profitability”. Fink acknowledges … Continue Reading

IOSCO consults on sustainable finance recommendations

On 1 February 2019, the International Organization of Securities Commissions (IOSCO) published a consultation report on sustainable finance in emerging markets and the role of securities regulators (the Consultation). Based on analysis by IOSCO’s Growth and Emerging Markets Committee (GEMC),  the Consultation proposes a set of 11 recommendations that member jurisdictions should consider when issuing … Continue Reading

Draft Commission Delegated Regulations on sustainable finance

On 4 January 2019, the European Commission published the following draft Delegated Regulations on how investment firms and insurance distributors should take sustainability issues into account when advising clients: Commission Delegated Regulation (EU) …/… of XXX amending Delegated Regulation (EU) 2017/565 as regards the integration of Environmental, Social and Governance (ESG) considerations and preferences into … Continue Reading

ESMA consults on measures to promote sustainability in EU capital markets

On 19 December 2018, the European Securities and Markets Authority (ESMA) issued three consultation papers on sustainable finance initiatives to support the European Commission’s Sustainability Action Plan in the areas of securities trading, investment funds and credit rating agencies. The consultation paper on integrating sustainability risks and factors in MiFID II seeks stakeholder input on … Continue Reading

ECB speech on central banks and climate change

On 28 November 2018, the European Central Bank (ECB) published a speech by Yves Mersch, Member of the Executive Board of the ECB, on climate change and central banking. Mr Mersch notes that climate change poses the risk of considerable social costs and economic disruption. The challenges of climate change are social issues. Mr Mersch … Continue Reading

European Commission publishes Sustainable Finance Package

On 24 May, the European Commission released a set of legislative proposals on financing sustainable growth (so called Sustainable Finance Package). These measures are the first steps towards implementing some of the recommendations of the EU’s High-Level Expert Group on sustainable finance published in January 2018 and are part of the European Commission Action Plan … Continue Reading

Public consultation on institutional investors and asset managers’ duties regarding sustainability

The European Commission has issued a consultation document concerning institutional investors and asset managers’ duties regarding sustainability. The purpose of the consultation document is to gather information on how asset managers and institutional investors could include environmental, social and governance factors when taking decisions. The may help them allocate capital more efficiently by taking into … Continue Reading

Joint Committee of ESAs technical advice on PRIIPs with environmental or social objectives

Packaged retail and insurance-based investment products (PRIIPs) are increasingly being offered that target specific social or environmental objectives, and not only purely financial objectives. In light of this, article 8(3)(c) of the PRIIPs Regulation requires a section of the key information document (KID) entitled “What is this product?” to outline the nature and main features … Continue Reading

ESAs consult on packaged retail and insurance-based investment products with environmental or social objectives

Last summer the European Commission mandated the Joint Committee of the European Supervisory Authorities (ESAs) (the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority) to provide technical advice specifying the details of the procedures used to establish whether a packaged retail investment product (PRIIP) targets specific … Continue Reading