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
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 1 August 2023, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published an exploratory study into the sustainability risk management of Dutch alternative investment fund managers (AIFMs). The study was conducted due to changes made to the UCITS Directive (Directive 2009/65/EC) and the AIFMD Delegated Regulation (Commission Delegated Regulation (EU) … 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
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
On 16 June 2023, the European Securities and Markets Authority (ESMA) launched a Call for Evidence (CfE) on the integration of sustainability preferences in the suitability assessment and product governance arrangements. Per Article 25(2) of MiFID II and Articles 54 and 55 of Commission Delegated Regulation 2017/565 (MiFID II Delegated Regulation), investment firms providing investment … Continue Reading
On 12 June 2023, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a Guideline on Sustainability Claims (the Guideline) for public consultation. The purpose of this Guideline is to provide market participants with the necessary tools to make accurate, clear and non-misleading sustainability claims. The AFM recognises the significant role … Continue Reading
On 13 June 2023, the European Commission (the Commission) published a sustainable finance package. The package contains measures to build on and strengthen the foundations of the EU sustainable finance framework. The aim of the package is to ensure that the EU sustainable finance framework continues to support companies and the financial sector, while encouraging … Continue Reading
On 31 May 2023, the European Supervisory Authorities (ESAs) published their progress reports on greenwashing in the financial sector. In these reports, the ESAs put forward a common high-level understanding of greenwashing applicable to market participants across their respective remits – banking, insurance and pensions, and financial markets. The reports follow a request from the … Continue Reading
On 31 May 2023, the Network for Greening the Financial System (NGFS) published a report taking stock on financial institutions’ transition plans and their relevance to micro-prudential authorities. Building on the conclusions of the previous NGFS report on ‘capturing risk differentials from climate-related risks’ which emphasised the importance of a forward-looking approach to assess climate-related … Continue Reading
