The public consultation seeks input on the priorities, strategic direction, and future work of the ISSB. By Paul A. Davies, Michael D. Green, and James Bee On 4 May 2023, the International Sustainability Standards Board (ISSB) launched a public consultation to seek input on its agenda priorities for a two-year period commencing in 2024. The … Continue Reading
The Commission has clarified requirements for financial product classifications and the definition of “sustainable investment” under the SFDR. By Paul A. Davies, Nicola Higgs, Michael D. Green, Anne Mainwaring, and James Bee In April 2023, the European Commission (Commission) published a series of answers to questions that the European Supervisory Agencies (ESAs) had raised in … Continue Reading
The government published a new document outlining its existing and proposed objectives to develop the UK’s sustainable economy. By Paul A. Davies, Michael D. Green, and James Bee On 30 March 2023, the UK government published an updated version of its Green Finance Strategy (the Strategy), titled “Mobilising Green Investment”. The Strategy is part of the UK government’s … Continue Reading
The government has announced the launch of ESG standards to help companies transition to renewable energy. By Paul A. Davies, Farhana Sharmeen, Michael D. Green, and James Bee On 11 April 2023, the Malaysian government announced that it will introduce a framework on environmental, social, and corporate governance (ESG) standards by the end of 2023. … Continue Reading
The fourth beta version establishes draft disclosure metrics as well as biome and sector guidance — with final TNFD recommendations due in September 2023. By Paul A. Davies, Michael D. Green, James Bee, and Austin J. Pierce The Taskforce on Nature-Related Financial Disclosures (TNFD) published the fourth (and final) beta version of its framework (Version 0.4) at … Continue Reading
Proposed legislation would impose new constraints and regulatory obstacles for renewable energy, as conservative responses to ESG-related initiatives continue to morph across the US. By Sarah E. Fortt, Joshua W. Marnitz, and Austin J. Pierce The Texas legislature is considering several bills that could significantly impact both the regulatory landscape for renewable energy projects in … Continue Reading
The country’s financial authorities may evaluate potential regulatory efforts in conjunction with the Taxonomy following its rollout. By Austin J. Pierce In March 2023, Mexico published a finalized version of the country’s Sustainable Taxonomy (the Taxonomy), growing the increasing number of jurisdictions that have developed such a framework. At their core, these frameworks aim to … Continue Reading
The guidance, published by a key entity behind the Greenhouse Gas Protocol, provides information on reporting of avoided emissions, and eligibility criteria for companies. By JP Brisson, Paul A. Davies, Michael D. Green, and James Bee On 22 March 2023, the World Business Council for Sustainable Development (WBCSD) released guidance on avoided emissions, i.e., emissions … Continue Reading
The consultation considers what a potential regulatory regime would look like, and its proposed scope. By Nicola Higgs, Paul A. Davies, Becky Critchley, Anne Mainwaring, Ella McGinn, and Charlotte Collins On 30 March 2023, HM Treasury published a consultation on regulating ESG ratings providers, which ties in with and was published alongside the UK government’s … Continue Reading
The UK government has unveiled a number of measures with the overall purpose of reaching net zero by 2050 and meeting the UK’s climate targets. By Paul A. Davies, Beatrice Lo, JP Sweny, Simon Tysoe, Michael D. Green, and James Bee On 30 March 2023, on what has been called the UK’s “green day”, the … Continue Reading
The regulator is concerned that ESG-related disclosures are not meeting expectations. By Nicola Higgs, Becky Critchley, Anne Mainwaring, Ella McGinn, and Charlotte Collins The FCA has published a Dear CEO letter sent to benchmark administrators on 20 March 2023, expressing concerns about the quality of their ESG-related disclosures. The FCA’s concerns are based upon a … Continue Reading
By Paul A. Davies, Edward R. Kempson, Luca Morreale, and Peter Neuböck Sustainable Finance Sustainable finance is the practice of redirecting public and private capital towards investments that support ESG goals and outcomes. The market dynamics of sustainable finance are driven by the need for enormous investments to support sustainable transitions and meet net zero … Continue Reading
A court recently found that UK authorities did not fetter their discretion by not investigating general cotton imports potentially produced by the forced labour of Uyghur people in China. By Stuart Alford KC, Clare Nida, Nathan Seltzer, Paul Davies, Michael Green, James Bee, and Esha Marwaha On 20 January 2023, the High Court ruled against … Continue Reading
Companies interested in the scope of environmental marketing claims and mitigating potential litigation risks should act fast as the window for comments is closing soon. By Paul Davies, Robin M. Hulshizer, Jacqueline Y. Zhang, Danny Dvorak, Julia Hatcher, and Tony Kim Latham & Watkins presents a blog series on the Federal Trade Commission’s Guides for … Continue Reading
The Guidance would increase expectations for regulated financial institutions to identify, measure, monitor, and control climate-related financial risks. By Betty M. Huber, Arthur S. Long, Pia Naib, Austin J. Pierce, and Deric Behar For the past few years, the New York State Department of Financial Services (DFS) Superintendent has prioritized setting the pace in climate … Continue Reading
By Paul Davies, Sarah Fortt, Betty M. Huber, Karmpreet Grewal, and Austin Pierce On January 4, 2023, the Office of Information and Regulatory Affairs released the Fall 2022 Regulatory Flexibility Agenda. The agenda includes several updates to the Securities and Exchange Commission’s plans for various ESG-related actions. A summary of primary ESG-related actions is provided below, … Continue Reading
Navigating a global patchwork of ESG regulation and enforcement while preparing for greenwashing claims and other ESG litigation will likely be among the main concerns for companies in 2023. By Paul Davies, Sarah Fortt, and Betty M. Huber Both anticipated and less expected changes occurred across the ESG landscape in 2022. Anticipated changes included regulatory … Continue Reading
The updated Green Guides will likely impact legal liability for environmental marketing claims in the years to come. By Jean-Philippe Brisson, Paul A. Davies, Sarah E. Fortt, Julia A. Hatcher, Betty M. Huber, Robin M. Hulshizer, Michael Dreibelbis, Michael D. Green, Danny Dvorak, Brett Frazer, Austin J. Pierce, Angela Walker, and Jacqueline Y. Zhang Latham … Continue Reading
The guiding principles are similar to related proposals from other banking regulators, but will require further clarification through the comment process. By Nicola Higgs, Betty M. Huber, Arthur S. Long, Pia Naib, Anne Mainwaring, and Deric Behar On December 2, 2022, the Board of Governors of the Federal Reserve System (Federal Reserve) published proposed Principles … Continue Reading
The Council’s position includes a number of differences from the European Commission’s original proposal, including in relation to the requirement to diligence the broader value chain. By Paul A. Davies, Michael D. Green, and James Bee On 30 November 2022, the European Council (the Council) — which comprises the views of the EU Member State governments … Continue Reading
The third version introduces several new disclosure recommendations ahead of what is supposed to be a “Paris moment” for biodiversity in Montreal. By Paul A. Davies, Michael D. Green, James Bee, and Austin Pierce As environmental ambitions continue to grow, much attention has focused on climate. A key focal lens for that has been the … Continue Reading
From 2024 at the earliest, more European and global companies will need to disclose their ESG activities in greater detail. By Paul A. Davies, Michael D. Green, and James Bee On 10 November 2022, the European Parliament adopted a final version of the Corporate Sustainability Reporting Directive (CSRD). The CSRD will require large EU companies … Continue Reading
Extensive negotiations focused on finalizing the details of a “rulebook” for an international carbon market under Article 6 of the Paris Agreement. By Jean-Philippe Brisson, Paul A. Davies, Sarah Fortt, Betty M. Huber, Michael Dreibelbis, and Qingyi Pan The 27th annual Conference of Parties (COP27) of the United Nations Framework Convention on Climate Change (UNFCCC) … Continue Reading
TPT’s proposed best practice includes four elements for effective disclosure of transition plans, aligned with GFANZ’s and the ISSB’s disclosure recommendations. By Paul A. Davies, Michael D. Green, and James Bee On 8 November 2022, the UK’s Transition Plan Taskforce (TPT) launched a draft of its proposed Transition Plan Disclosure Framework (the TPT Framework), alongside … Continue Reading
