A new proposal would amend changes made to ERISA less than a year ago that have proved to be detrimental to ESG investing. By Jean-Philippe Brisson, Paul A. Davies, Nicola Higgs, Malorie R. Medellin, and Deric Behar In a sweeping reversal of Trump-era policies, the US Department of Labor (DOL) has issued a proposed rule, … Continue Reading
A snapshot of the global regulatory landscape in the context of ESG-related disclosures. By Nick Benson, David Berman, Paul A. Davies, Laura N. Ferrell, Simon Hawkins, Nicola Higgs, Farhana Sharmeen, Anne Mainwaring, Dominik Schoeneberger, Shirley Wong, and Charlotte Collins The global asset management community has long been among the leaders in recognising the investment and … Continue Reading
The European Commission continues to explore how competition policy can support the bloc’s increased focus on sustainability and progression towards climate neutrality by 2050. By David Little and Anuj Ghai On 10 September 2021, Inge Bernaerts, Director of DG Competition, delivered a keynote speech at the 25th IBA Competition Conference on behalf of Executive Vice-President … Continue Reading
Both bourses are seeking to incorporate the TCFD recommendations into their sustainability reporting regimes, extending a trend of convergence in regional ESG reporting standards. By Paul A. Davies, Timothy Hia, and Sabrina Singh On August 26, 2021, the Singapore Exchange Regulation (SGX RegCo) released a consultation paper proposing amendments to the sustainability reporting (SR) regime … Continue Reading
The proposal encourages board diversity for companies listed on the exchange and provides stakeholders with consistent, comparable disclosures concerning board composition. By Paul Davies, Paul Dudek, Colleen Smith, Andra Troy, and James Bee On August 6, 2021, the US Securities and Exchange Commission (SEC) voted to approve Nasdaq’s proposed changes to its listing rules (the … Continue Reading
Guidance will help borrowers, lenders, and advisers in applying Sustainability Linked Loan Principles. By Paul Davies, Karan Chopra, Edward Kempson, and Sindhoo Vinod On 28 July 2021, the Loan Market Association (LMA) and European Leveraged Finance Association (ELFA) published a best practice guide (the Guide) to Sustainability Linked Leveraged Loans (SLLLs). The Guide provides practical … Continue Reading
The consultation is part of IOSCO’s broader goal to establish global sustainability disclosure standards. By Paul A. Davies, Nicola Higgs, and Anne Mainwaring On 26 July 2021, the Board of the International Organization of Securities Commissions (IOSCO) published a consultation report (the Report) that proposes a set of recommendations to mitigate risks flowing from activities … Continue Reading
FCA has published guiding principles on the design, delivery, and disclosure of ESG and sustainable investment funds. By Nicola Higgs, David Berman, Paul Davies, Anne Mainwaring, and Charlotte Collins On 19 July 2021, the FCA published a letter sent to chairs of authorised fund managers, which sets out the regulator’s expectations regarding disclosures by funds … Continue Reading
The law imposes mandatory human rights and environmental due diligence obligations on companies in Germany as of 1 January 2023. By Paul A. Davies, Stefan Bartz, and Alexander Wilhelm On 25 June 2021, the Bundesrat, the legislative chamber of the German Federal States, approved the Supply Chain Due Diligence Act (Lieferkettensorgfaltsgesetz). The law now only needs to … Continue Reading
Board members are expected to have adequate knowledge and understanding of climate-related and ESG risks. By Nicola Higgs, Paul A. Davies, and David Berman Legislators and regulators around the world have long recognised that one of the most effective ways to drive change is by focusing the minds of management — specifically by attaching individual … Continue Reading
The order is a key lever in the Biden Administration’s climate agenda and puts the US closer in step with developments in Europe. By Paul A. Davies and Andra Troy* On May 20, 2021, President Joe Biden signed into effect an Executive Order on Climate-Related Financial Risk (Executive Order) aimed at addressing the threat that … Continue Reading
By Charles C. Read and Marc T. Campopiano The right to regulate subject to due process constraints is a foundation of public utility law. This article examines the extent to which a regulatory agency can restrict and ultimately terminate a utility’s operations based on public policy considerations. This issue has arisen in industries confronted with … Continue Reading
The package focuses on material sustainability reporting and disclosure obligations, as the EU looks to direct capital toward sustainable activities. By Paul A. Davies, Nicola Higgs, David Little, and Michael Green On 21 April 2021, one day prior to Earth Day and a US-led global climate summit, the European Commission adopted a much-anticipated package of … Continue Reading
For market participants pivoting toward ESG and digital assets, weighing the issues at the crossroads of these two megatrends is critical. By Paul A. Davies, Stuart Davis, Simon Hawkins, Nicola Higgs, Yvette D. Valdez, Thomas Vogel, Stephen P. Wink, and Deric Behar The huge rise in popularity of Bitcoin — and the growing interest by … Continue Reading
The CFTC continues to demonstrate a commitment to using its regulatory mandate to combat climate change risks to the US financial system. By Yvette D. Valdez, Douglas K. Yatter, Jean-Philippe Brisson, Paul Davies, Nicola Higgs, and Deric Behar On March 17, 2021, the Commodity Futures Trading Commission (CFTC) announced the establishment of an interdivisional Climate … Continue Reading
The German government has adopted draft law to ensure corporate compliance with human rights in the supply chain. By Paul A. Davies, Michael D. Green, Joachim Grittmann, Stefan Bartz, and Alexander Wilhelm On 3 March 2021, the German government adopted the draft Corporate Due Diligence in Supply Chains Act (Gesetz über die unternehmerischen Sorgfaltspflichten in … Continue Reading
The Division of Enforcement’s new Climate and ESG Task Force will use data analysis to mine and evaluate registrant information for possible violations. By Paul A. Davies, Paul M. Dudek, and Andra Troy* On March 4, 2021, the US Securities and Exchange Commission (SEC) announced the creation of a Climate and ESG Task Force in … Continue Reading
OSHA calls for comments on significant proposed amendments to align Hazard Communication Standard with the United Nations Globally Harmonized System of Classification and Labelling of Chemicals. By Julia A. Hatcher, Stijn Van Osch, Nathaniel L. Glynn*, and Jacqueline J. Yap The US Department of Labor’s Occupational Safety and Health Administration (OSHA or the agency) published a … Continue Reading
Biden Administration elevates consideration of GHG emissions and climate change in federal agency approvals by rescinding Trump guidance and reviving Obama guidance. by Janice M. Schneider, Stacey L. VanBelleghem, and Devin M. O’Connor On February 19, 2021, the White House Council on Environmental Quality (CEQ) published a Federal Register Notice rescinding the June 2019 “Draft … Continue Reading
The report’s recommendations cover a number of areas, including culture and strategy, monitoring and reporting, investor engagement, policy formation and employee training, and philanthropy. By Paul A. Davies and Michael D. Green A new report from the UK Independent Anti-Slavery Commissioner draws attention to how the financial services industry can help address the issue of … Continue Reading
New regulations in renewable energy, infrastructure, telecommunications, and ESG are expected to impact companies and investors in Spain in the coming year. By José María Alonso and Leticia Sitges Despite the ongoing effects of the pandemic, the Spanish government has established a route toward decarbonizing and digitalizing the economy and toward promoting circular-economy initiatives. This … Continue Reading
A range of ESG policy, social, and technological developments are poised to impact companies and investors in the coming year. By Paul A. Davies, Nicola Higgs, Sophie Lamb QC, Ryan J. Maierson, Colleen C. Smith, Michael D. Green, and Edward R. Kempson Despite concerns early in 2020 that the pandemic would impact the growth of … Continue Reading
The House of Lords has adopted two amendments to require assessment of compliance with international agreements and human rights. By Paul A. Davies and Michael D. Green On 7 December 2020, the UK House of Lords voted on and passed four amendments to the Trade Bill (the Bill), including two amendments referring to human rights … Continue Reading
FCA director highlights areas of concern in relation to ESG reporting and provides recommendations. By Paul A. Davies, Nicola Higgs, Michael D. Green, and Anna Lewis-Martinez Richard Monks, Director of Strategy at the UK Financial Conduct Authority (FCA), recently delivered a speech on the environmental, social, and governance (ESG) reporting regime and how it can … Continue Reading
