On 22 November 2022, the European Commission (Commission) issued a call for advice to the European Banking Authority (EBA) on green loans and mortgages. In its ‘Strategy on Financing the Transition to a Sustainable Economy’ (Strategy) of July 2021, the Commission outlined four policy areas in which further work is needed. One of the four … Continue Reading
On 10 November 2022, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published the results of an investigation it conducted on the status of compliance of financial undertakings with the Sustainable Finance Disclosure Regulation (Regulation (EU) 2019/2088, SFDR) and the related Taxonomy Regulation (Regulation (EU) 2020/852). The report covers its findings into … Continue Reading
On 18 November 2022, the European Securities and Markets Authority (ESMA) published a consultation paper containing draft guidelines on funds’ names using ESG or sustainability-related terms. Currently, ESMA has provided some principles based guidance on funds’ names with ESG or sustainability related terms in a supervisory briefing on sustainability risks and disclosures in the area … Continue Reading
On 15 November 2022, the European Banking Authority (EBA) announced that the three European Supervisory Authorities (ESAs) had published a call for evidence on greenwashing. The call for evidence seeks input on potential greenwashing practices in the whole EU financial sector, including banking, insurance and financial markets, which may be relevant to various segments of the … Continue Reading
On 15 November 2022, the Financial Stability Board (FSB) and Network for Greening the Financial System (NGFS) published their initial findings and lessons from the Climate Scenario Analysis by Jurisdictions. The report provides a synthesis of the findings from climate scenario analysis exercises undertaken by financial authorities at the individual firm level, at the level … Continue Reading
On 7 October 2022, the International Organisation of Securities Commissions (IOSCO) announced a call for action on good sustainable finance practices for financial markets voluntary standard setting bodes and industry associates. IOSCO is calling upon all voluntary standard setting bodies and industry associations operating in financial markets to promote good practices amongst their members to … Continue Reading
On 2 November 2022, the European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far away from adequately managing climate and environmental risks. The thematic review aimed to check whether EU banks adequately identify and manage climate risks as well as environmental risks such as biodiversity loss. … Continue Reading
On 31 October 2022, the European Commission updated the technical standards to be used by financial market participants when disclosing sustainability-related information under the Sustainable Finance Disclosures Regulation. The amendments will require financial market participants to also disclose by way of a simple graph the extent to which their portfolios are exposed to the gas … Continue Reading
On 27 October 2022, the European Securities and Markets Authority (ESMA) announced that it is changing its Union Strategic Supervisory Priorities (USSPs) to include ESG disclosures alongside market data quality. According to ESMA, this represents an important step in the implementation of its strategy, which gives a prominent role to sustainable finance. The USSPs are … Continue Reading
On 24 October 2022, the European Banking Authority (EBA) published a report, addressed to competent authorities, on how to incorporate ESG risks in the supervision of investment firms. The Report also provides an initial assessment of how ESG factors and ESG risks could be included in the supervisory assessment of investment firms. The Report should … Continue Reading
On 13 October 2022, the Financial Stability Board (FSB) published its final report on supervisory and regulatory approaches to climate-related risks. The report is intended to assist all authorities in assessing climate-related risk. However, the applicability of the high-level recommendations may differ depending on each authority’s mandate and the role that different tools (such as … Continue Reading
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
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
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
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
On 8 September 2022, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) announced that this fall, it will investigate the status of investment fund managers’ compliance with the Sustainable Finance Disclosure Regulation (Regulation (EU) 2019/2088, SFDR) and the related Taxonomy Regulation (Regulation (EU) 2020/852). In 2021, the AFM published a report on … Continue Reading
On 7 September 2022, the Decree implementation directives for investment firms and UCITS on sustainability risks and factors (Besluit implementatie richtlijnen voor beleggingsondernemingen en icbe’s inzake duurzaamheidsrisico’s en duurzaamheidsfactoren, the Decree) was published in the Dutch Government Gazette (Staatsblad). The Decree implements Commission Delegated Directive (EU) 2021/1269 as regards the integration of sustainability factors into … Continue Reading
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
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
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
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
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
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
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
