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Topic: ESG

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FSB and NGFS publish initial findings and lessons from the Climate Scenario Analysis by Jurisdictions

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

IOSCO call for action on good sustainable finance practices for financial markets voluntary standard setting bodes and industry associates

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

FSB final report on regulatory approaches to climate-related risks and progress report on climate related disclosures

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

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

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

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

Basel Committee issues principles for the effective management and supervision of climate-related financial risks

On 15 June 2022, the Basel Committee on Banking Supervision (Basel Committee) issued principles for the effective management and supervision of climate-related financial risks. The 18 principles are intended to promote a principles-based approach to improving both banks’ risk management and supervisors’ practices related to climate-related financial risks. They cover corporate governance, internal controls, risk … Continue Reading

US SEC proposes new ESG disclosure rules for funds and advisers

On May 25, 2022, the US Securities and Exchange Commission proposed new rules to enhance the regulatory framework for disclosures concerning investment funds and investment advisers’ environmental, social and governance-related (ESG) investing strategies (the Proposed Rules).  If adopted, the Proposed Rules would require SEC-registered advisers to include ESG factors and strategies for investors in fund … Continue Reading

NGFS publishes its 2022-2024 work program

On 30 May 2022, the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) published its new work program, detailing its priorities for the next two years. The new work program will be undertaken by four work streams and two task forces: Work stream on Supervision – Chaired by Mr Jamey Hubbs … Continue Reading

US SEC settlement demonstrates the risks to investment advisers of using ESG investment decision-making metrics

The US Securities and Exchange Commission (SEC) has been increasingly vocal about its view that environmental, social and governance (ESG) disclosures can be material to investors. To help combat ESG disclosure violations, the SEC created a Climate and Risk Task Force within the Division of Enforcement. As a result of the Task Force’s efforts, on … Continue Reading

FSB launches consultation on supervisory and regulatory approaches to climate-related risks

On 29 April 2022, the Financial Stability Board (FSB) issued a report setting out certain recommendations that are intended to assist supervisory authorities in developing their approaches to monitor, manage and mitigate cross-sectoral and system-wide risks arising from climate change and promote consistent approaches across sectors and jurisdictions. The report: Examines supervisory and regulatory reporting … Continue Reading

NGFS acknowledges that nature-related risks could have significant macroeconomic and financial implications

On 24 March 2022, the Network for Greening the Financial System (NGFS) issued a statement on nature-related financial risks. Among other things the statement notes that on the basis of available scientific evidence, the NGFS is of the view that nature-related risks, including those associated with biodiversity loss, could have significant macro-economic implications, and that … Continue Reading

IOSCO 2022 sustainable finance work plan

On 14 March 2022, the International Organization of Securities Commissions (IOSCO) published its work plan to develop sustainable finance. Among other things IOSCO plans to review the soon-to-be-published IFRS International Sustainability Standards Board (ISSB) Exposure Drafts of proposed climate and general sustainability disclosure requirements, as well as the final standards when they are produced. The … Continue Reading

IOSCO final report ESG Ratings and Data Products Providers

On 23 November 2021, the Board of the International Organisation of Securities Commissions (IOSCO) published a final report with a set of recommendations calling for oversight of ESG Ratings and Data Product Providers. The use of ESG ratings and data products has grown considerably in response to investors’ mounting interest in investing in companies that … Continue Reading

Speech given by Erik Thedéen, Chair IOSCO Sustainable Finance Task Force at the Green Horizon Summit

On 4 November 2021, Erik Thedéen, the Chair of the International Organisation of Securities Commissions (IOSCO) Sustainable Finance Task Force gave a speech at the Green Horizons Summit during COP26, to discuss the IOSCO’s recent work on sustainable finance. The IOSCO’s work has focused on issuers and asset managers’ disclosures, alongside the role of ESG … Continue Reading

IIF launches new guidance template to support effective climate disclosures

On 3 November 2021, the Institute of International Finance (IIF) launched a new TCFD Guidance Template to help financial institutions align their climate-related disclosures with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), with a focus on the banking sector. Drawing in observed industry practices, including mapping and benchmarking of TCFD reports … Continue Reading

IOSCO recommendations on sustainability-related practices, policies, procedures and disclosure in asset management

On 2 November 2021, the International Organisation of Securities Commissions (IOSCO) published a final report containing a set of  recommendations on sustainability-related practices, policies, procedures and disclosure in asset management.  The final report also sets out the findings from IOSCO fact finding exercises that included a survey of its members concerning regulatory and supervisory approaches … Continue Reading

UNEP FI first collective progress report on the UN Principles for Responsible Banking

On 15 October 2021, the United Nations’ Environment Programme Finance Initiative (UNEP FI) published its first collective progress report on the implementation of the Principles for Responsible Banking (PRB). The PRB commit signatories to aligning their business strategies with the Sustainable Development Goals and the Paris Climate Agreement. Since the launch of the PRB in … Continue Reading

TCFD status report for 2021

  On 14 October 2021, the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD) issued a status report for 2021. The status report provides an update on key TCFD-related developments and initiatives as well as the results of the TCFD’s annual review of climate-related reporting. The status report also contains key findings … Continue Reading

OECD reports on climate transition

On 4 October 2021, the Organisation for Economic Co-operation and Development (OECD) published: A report ‘ESG investing and climate transition: Market practices, issues and policy considerations’. The report highlights the main findings from recent OECD research on ESG rating and investing. It offers policy considerations to strengthen ESG practices to foster global interoperability and comparability, … Continue Reading

IOSCO consults on ESG ratings and data providers

On 26 July 2021, the International Organization of Securities Commissions (IOSCO) issued a consultation report intended to assist its members in understanding the implications of the activities of environmental, social and governance (ESG) ratings and data providers and in establishing frameworks to mitigate risks stemming from these activities. The consultation report has five chapters: Chapter … Continue Reading

FSB publishes three climate-related reports

On 7 July 2021, the Financial Stability Board (FSB) published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their 9 – 10 July 2021 meeting. Among other things the letter stresses the need for coordinated action to address financial risks posed by climate change, noting … Continue Reading

IOSCO consults on sustainability-related regulatory and supervisory expectations in asset management

On 30 June 2021, the International Organization of Securities Commissions (IOSCO) issued a consultation report on recommendations for sustainability-related practices, policies, procedures and disclosure in asset management. The consultation report focuses on investor protection issues and proposes that securities regulators consider setting regulatory and supervisory expectations for asset managers regarding sustainability-related risks and opportunities. The … Continue Reading
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