The paper articulates common reporting metrics for sustainable value creation for companies reporting on ESG performance. By Paul A. Davies, Paul M. Dudek, Ryan J. Maierson, and Kristina S. Wyatt On September 22, 2020, the International Business Council (IBC) of the World Economic Forum (WEF), in collaboration with Deloitte, EY, KPMG, and PwC, published a … Continue Reading
Leading sustainability and integrated reporting organisations plan to provide joint market guidance, in an effort to achieve comprehensive harmonisation. By Paul A. Davies and Michael D. Green A group of leading sustainability and integrated reporting organisations — including the Carbon Disclosure Project (CDP), the Climate Disclosure Standard Board (CDSB), the Global Reporting Initiative (GRI), the … Continue Reading
The European Commission President delivers her first state of the union address, covering a number of issues, in particular a number of ESG matters. By Paul A. Davies and Michael D. Green On 16 September 2020, Ursula von der Leyen, delivered her first state of the union address since taking over the presidency of the … Continue Reading
A watershed CFTC report highlights the dangers of climate change to the US economy, and provides a broad risk-mitigation roadmap. By Jean-Philippe Brisson, Paul A. Davies, Nicola Higgs, Yvette D. Valdez, R. Andrew Westgate, Kristina S. Wyatt, and Deric Behar On September 9, 2020, the US Commodity Futures Trading Commission’s (CFTC’s) Climate-Related Market Risk Subcommittee … Continue Reading
New guidance contains clarifications from the European Commission and seeks to lessen trade barriers following the Brexit transition period. By Paul A. Davies and Michael D. Green The UK’s Department for Business, Energy and Industrial Strategy (BEIS) has published updated guidance on meeting climate change requirements after the Brexit transition period ends on 1 January … Continue Reading
The Adopting Release’s inaction on ESG disclosures drew dissension from two SEC Commissioners. By Paul A. Davies, Paul M. Dudek, Ryan J. Maierson, and Kristina S. Wyatt Background On August 26, 2020, the US Securities and Exchange Commission (SEC or Commission) adopted amendments to Regulation S-K — the key rules guiding companies’ disclosures in registration … Continue Reading
The CFA Institute has launched a consultation on ESG disclosure standards for investment products, seeking to enhance transparency and comparability between ESG products. By Paul A. Davies and Michael D. Green On 19 August 2020, the CFA Institute — the largest organisation representing investment professionals — released a consultation concerning ESG disclosures (the Consultation). Recognising … Continue Reading
Pending rulemaking set to limit ESG-focused investments by ERISA plan fiduciaries, as DOL’s concurrent letters raise questions. By Paul A. Davies, Paul M. Dudek, and Kristina S. Wyatt Letters to Registered Investment Advisors (RIAs) The US Department of Labor (DOL) has reportedly sent letters[1] to several registered investment advisors seeking information about their use of … Continue Reading
The group’s recommendations urgently call for the global standardisation of ESG reporting requirements to help “build back better” after COVID-19. By Paul A. Davies and Michael D. Green On 5 August 2020, Global Investors for Sustainable Development (GISD) Alliance released to the European Commission their July 2020 report, titled Renewed, Recharged and Reinforced: Urgent actions … Continue Reading
Two initiatives seek to standardise approaches to carbon accounting and provide a blueprint for investors to help achieve net zero global emissions by 2050. By Paul A. Davies and Michael D. Green On 3 August 2020, the Partnership for Carbon Accounting Financials (PCAF), a global collaboration of 70 financial institutions with total financial assets of … Continue Reading
The inquiry seeks further evidence on how and whether the government’s response to COVID-19 should take green ambitions into account. By Paul A. Davies and Michael D. Green On 24 July 2020, the UK Treasury Committee (the Committee) relaunched its inquiry into decarbonisation of the UK economy and green finance.… Continue Reading
The carbon border adjustment mechanism would aim to prevent carbon leakage resulting from carbon pricing in the EU emissions trading system. By Paul A. Davies and Michael D. Green On 22 July 2020, the European Commission (the Commission) published a consultation on a carbon border adjustment mechanism (CBAM) that is open until 28 October 2020. … Continue Reading
While the investor community continues to call for more useful ESG disclosures, some regulators try to put on the brakes. By Paul A. Davies, Paul M. Dudek, and Kristina S. Wyatt Calls for Improved ESG Disclosures Many in the investor community have spoken out about their desire for more comparable, decision-useful environmental, social and governance … Continue Reading
Energy system integration is considered a crucial aspect of delivering the EU’s target to achieve climate neutrality by 2050. By Paul A. Davies and Michael D. Green On 8 July 2020, the European Commission (the Commission) issued a new Communication, “Powering a climate-neutral economy: An EU Strategy for Energy System Integration” (the Communication). The Communication … Continue Reading
The guidance contains practical advice for navigating ESG diligence and compliance. By James R. Barrett, Paul A. Davies, Michael D. Green, Bobbi-Jo B. Dobush, and Jacqueline J. Yap* On June 19, 2020, the Equator Principles Association (EPA) issued Guidance on Implementation of the Equator Principles During the Covid-19 Pandemic, as prepared by Ramboll (Guidance). The … Continue Reading
Increasing interest in ESG issues presents an opportunity for sponsors to re-evaluate their existing ESG strategies. By Paul A. Davies, Nicola Higgs, Farah O’Brien, and Hannah Berdal The COVID-19 pandemic continues to present unprecedented challenges for European private equity firms and their portfolio companies. A significant number of companies have been forced to undertake emergency … Continue Reading
By Paul A. Davies and Michael D. Green As the COVID-19 pandemic continues to cause economic disruption, the UK government (government) has established five working groups tasked with discussing and evaluating economic recovery measures. The groups will focus on five key themes, including “Green recovery: how to capture economic growth opportunities from the shift to … Continue Reading
The ESG performance will be measured quarterly, with the average performance of the portfolio companies judged by reference to three KPIs. By Paul Davies, Dominic Newcomb, Farah O’Brien and Michael Green On 11 June 2020, private equity firm EQT announced that it has entered into an environmental, social, and governance–linked fund-level subscription credit facility (SCF) … Continue Reading
Statements by the SEC’s Investor Advisory Committee and Asset Management Advisory Committee point to the growing need for action on ESG. By Paul A. Davies, Paul M. Dudek, and Kristina S. Wyatt Recommendations of the Investor Advisory Committee “The use of ESG-related disclosures has gone from a fringe concept to a mainstream, global investment and … Continue Reading
We are excited to announce the launch of Latham’s newest Book of Jargon®: Environmental, Social & Governance. This comprehensive digital glossary of more than 1,000 ESG terms was developed for the business, academic, and legal communities. This Book of Jargon is being presented with the World Business Council for Sustainable Development, a global, CEO-led organization … Continue Reading
Governments are under pressure to ensure that any financing used to assist the economic recovery from COVID-19 embeds climate change policy. By Paul A. Davies and Michael D. Green The economic impact of COVID-19 has required unprecedented state intervention and support for companies and individuals in countries around the world. Now, certain climate policy advisors … Continue Reading
Agencies following the state’s open meeting laws must balance public safety imperatives with advancing critical projects as they determine how to hold public meetings while Californians can’t go out in public. By Nikki Buffa, Taiga Takahashi, Samantha K. Seikkula, and Julie Miles California’s two open meeting laws — the Brown Act and the Bagley-Keene Open … Continue Reading
A rating agency accepted a preliminary injunction regarding a disputed corporate sustainability rating. By Paul A. Davies, Michael D. Green, Joachim Grittmann, and Alexander Wilhelm As reported by a number of German newspapers and the environmental press, a dispute between the US proxy advisory firm Institutional Shareholder Services (ISS) and the German industrial image processing … Continue Reading
Proposals to enhance climate-related disclosures include promoting the use of the TCFD recommendations. By Paul A. Davies, Nicola Higgs, Chris Horton, James Inness, and Michael D. Green On 6 March 2020, the UK’s Financial Conduct Authority (FCA) launched a consultation primarily focused on enhancing requirements on certain listed companies to make climate-related disclosures (the Consultation). … Continue Reading
