On 3 October 2023, the European Securities and Markets Authority’s (ESMA) guidelines on certain aspects of the MiFID II suitability requirements came into force. ESMA expects these guidelines to promote greater convergence in the interpretation of and supervisory approaches to the MIFID II suitability requirements by emphasising a number of important issues and thereby enhancing … Continue Reading
On 2 October 2023, the European Securities and Markets Authority (ESMA) published a study on environmental, social and governance (ESG) names and claims in the EU funds industry. This study contributes to ESMA’s on-going monitoring efforts in the area of greenwashing risks, in particular in the investment management sector and supports on-going regulatory efforts regarding … Continue Reading
On 28 September 2023, the European Supervisory Authorities (ESAs) published their second joint report on the extent of voluntary disclosure of principal adverse impacts (PAI) under the Sustainable Finance Disclosure Regulation (SFDR). Like the approach taken for the first report in 2022, the ESAs launched a survey of Member State competent authorities to assess the … Continue Reading
On 27 September 2023, the European Systemic Risk Board (ESRB) published advice on the prudential treatment of environmental and social risks. The advice highlights the specificity of risks related to climate change, which can be expected to become an important driver of broader environmental and social risks, and the challenges of tackling such risks in … Continue Reading
We have published our latest ESG updater, tracking regulatory developments in the ESG space over the last month. Should you wish to receive the updater please contact Haney Saadah. For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
On 22 September 2023, the United Nations Environment Programme (UNEP) published the second biennial progress report on implementation of the UN Principles for responsible banking. The report highlights the key achievements of member banks in integrating sustainability considerations such as climate change mitigation into their strategies, transforming governance structures, understanding their impacts better, setting targets … Continue Reading
On 19 September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published its recommendations. The TNFD was launched in 2021. It is a global, market-led, science-based, and government-supported initiative with the mission to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related issues. The aim of … Continue Reading
On 14 September 2023, the European Commission announced that it has launched a targeted consultation and a public consultation to seek feedback on the Sustainable Finance Disclosure Regulation (SFDR). The SFDR, which has been in application since March 2021, sets out how financial intermediaries, such as asset managers, have to communicate sustainability information to investors. … Continue Reading
On 7 September 2023, the Network for Greening the Financial System (NGFS) published the beta version of its conceptual framework for nature-related financial risks to guide policies and action by central banks and financial supervisors. The framework creates a shared science-based understanding of, and common language for, nature-related financial risks to help central banks and … Continue Reading
On 6 September 2023, the European Central Bank (ECB) published Occasional Paper No 328 – The road to Paris: stress testing the transition towards a net-zero economy. The ECB states that this Occasional Paper contributes to the field of climate stress testing by introducing the following three key innovations: The results of this exercise demonstrate … Continue Reading
On 4 September 2023, the European Central Bank (ECB) published the keynote speech, given by Frank Elderson, Member of the ECB Executive Board and Vice-Chair of the ECB Supervisory Board, delivered at the ECB legal conference. The speech addressed the risks of climate and environment-related litigation for the banking sector. In his speech, Mr Elderson … Continue Reading
On 31 July 2023, the European Commission announced that it had adopted the European Sustainability Reporting Standards (ESRS) for use by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). The Commission has also published: The delegated act adopted by the Commission will be formally transmitted in the second half of August to the … Continue Reading
On 28 July 2023, the European Commission published an interim report on climate resilience dialogue. The Climate Resilience Dialogue, set up by the European Commission, aims to reduce the climate protection gap through facilitating exchanges between insurers, reinsurers, public authorities, and other stakeholders, such as real-estate developers and infrastructure operators, as set out in the … Continue Reading
On 20 July 2023, the European Banking Authority (EBA) issued a consultation on draft templates for collecting climate related data from EU banks. The consultation is part of the one-off Fit-for-55 climate risk scenario which the EBA carries out with other European Supervisory Authorities with the support of the European Central Bank and the European … Continue Reading
We have published our latest ESG updater, tracking regulatory developments in the ESG space over the last month. Should you wish to receive the updater please contact Haney Saadah. For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
On 18 July 2023, the European Banking Authority (EBA) published a decision of 6 July 2023 concerning ad hoc collection by Member State competent authorities (NCAs) to the EBA of institutions’ ESG data. Under this decision ESG data will be collected from large, listed institutions based on their pillar 3 quantitative disclosures on ESG risks. … Continue Reading
On 13 July 2023, the Financial Stability Board (FSB) published its 2023 progress report on the Roadmap for addressing climate-related financial risks. In July 2021 the FSB published a Roadmap to address climate-related financial risks which was endorsed by G20 Finance Ministers. The Roadmap addressed the need for coordinated action with a large number of … Continue Reading
On 11 July 2023, the European Commission published a Corrigendum to the proposed Regulation on the transparency and integrity of ESG rating activities. The Corrigendum concerns the English version of the proposed Regulation. Minor editing corrections have been made which do not affect the substance of the text.… Continue Reading
On 7 July 2023, there was published in the Official Journal of the European Union (OJ) Commission Recommendation (EU) 2023/1425 of 27 June 2023 on facilitating finance for the transition to a sustainable economy. The Recommendation is addressed to: Among other things the Recommendation notes that financing the transition to a climate-neutral and sustainable economy … Continue Reading
On 6 June 2023, the European Securities and Markets Authority (ESMA) announced the launch of a common supervisory action (CSA) with Member State competent authorities (NCAs) on sustainability-related disclosures and the integration of sustainability risks. The aim of the CSA is to assess the compliance of supervised asset managers with the relevant provisions in the … Continue Reading
On 5 July 2023, the International Regulatory Strategic Group (IRSG) published a consultation paper on a draft voluntary code of conduct for ESG ratings and data product providers. This draft code of conduct aims to foster a trusted, efficient and transparent market, by introducing clear standards for ESG ratings and data products providers and also … Continue Reading
On 26 June 2023, the International Sustainability Standards Board (ISSB) published its inaugural standards. The standards are designed to ensure that companies provide sustainability-related information alongside financial statements – in the same reporting package. The standards, which fully incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), are: The ISSB will work … Continue Reading
Following their call for evidence in November 2022, on 1 June 2023, the European Supervisory Authorities (“ESAs”) published their first progress reports on greenwashing (the “Reports”) to better identify the phenomenon and to assess which areas of the sustainable investment value chain (“SIVC”) are more exposed to greenwashing risks. In the Reports the ESAs have … Continue Reading
We have published our latest ESG updater, tracking regulatory developments in the ESG space over the last month. Should you wish to receive the updater please contact Haney Saadah. To keep updated on financial services regulation in the ESG space please see our ESG webpage.… Continue Reading
