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 Commission is also consulting on proposed targeted amendments to the Taxonomy Climate Delegated Act and on the Taxonomy Disclosures Delegated Act. By Paul A. Davies, Michael D. Green, and James Bee On 5 April 2023 the European Commission opened a consultation on its proposal for four additional environmental objectives under the EU Taxonomy Regulation[1] (the Taxonomy), including: … 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
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 consultation seeks feedback on its “measures-based approach” to classifying industrial activities, as well as “Do No Significant Harm” criteria. By Paul A. Davies, Farhana Sharmeen, Michael D. Green, and James Bee The Green Finance Industry Taskforce (GFIT) was convened by the Monetary Authority of Singapore (MAS) and includes representatives from financial institutions, corporates, and … 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
The Final Report recommends five themes that financial institutions should incorporate into their net zero transition strategies. By Paul A. Davies, Michael D. Green, and James Bee On 1 November 2022, the Glasgow Financial Alliance for Net Zero (GFANZ) issued its Final Report on the Fundamentals, Recommendations, and Guidance for Financial Institution Net Zero Transition … Continue Reading
The proposed taxonomy for green and transition activities is aligned with increasing global demand for clear and consistent classification of sustainable finance activities. By Paul Davies and Sabrina Singh In May 2022, the Green Finance Industry Taskforce — a multi-stakeholder group convened by the Monetary Authority of Singapore to accelerate the development of green finance … Continue Reading
The strategy sets out plans to reduce emissions from key sectors of the UK economy to ensure that the UK remains on track for net zero by 2050. By Conrad Andersen, John Balsdon, David Berman, Paul A. Davies, Nicola Higgs, Sam Newhouse, Simon J. Tysoe, Michael D. Green, James Bee, and Anne Mainwaring On 19 … Continue Reading
The roadmap introduces sustainability disclosure requirements for UK companies and reveals further developments in relation to a UK Green Taxonomy. By David Berman, Paul A. Davies, Nicola Higgs, Michael D. Green, Anne Mainwaring, and James Bee On 18 October 2021, the UK government released a report titled “Greening Finance: Roadmap to Sustainable Investing” (the Roadmap), … Continue Reading
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
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 new green bond standard aims to hit EU Green Deal targets, address environmental challenges, and increase investment in sustainable activities. By Paul Davies and Edward Kempson The European Commission (the Commission) recently issued two key announcements relating to the newly published EU Sustainable Finance Strategy (the Strategy) and the new EU Green Bond Standard … 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
The People’s Bank of China announced a collaboration with the European Union to adopt a common taxonomy for green investments. By Paul A. Davies, Nicola Higgs, and Edward R. Kempson On 21 March 2021, the People’s Bank of China (PBC) announced that China is working with the European Union to adopt a common green taxonomy … Continue Reading
The principles are intended to guide the industry’s engagement with policymakers concerning the ongoing economic transition away from carbon. By Paul A. Davies, Jason C. Ewart, and Edward R. Kempson The US Climate Finance Working Group, a group of leading financial services trade associations, has published “Financing a US Transition to a Sustainable Low-Carbon Economy” … 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
The plan promises 250,000 jobs and emphasises a “green industrial revolution” to stimulate a post-pandemic economic recovery. By Paul A. Davies and Michael D. Green On 17 November 2020, UK Prime Minister Boris Johnson announced a ten-point plan as part of the government’s initiative to “build back better”. The plan aims to bolster the economy … Continue Reading
In its finalized rule amending ERISA, the DOL makes financial factors paramount in a fiduciary’s responsibility to investors. By Paul A. Davies, Nicola Higgs, Kristina S. Wyatt, and Deric Behar On October 30, 2020, the US Department of Labor (DOL) published Financial Factors in Selecting Plan Investments (the Rule) and a related Fact Sheet, a … Continue Reading
The AFD’s new framework aligns with the UN Sustainable Development Goals and the 2030 Agenda. By Paul A. Davies, Michael D. Green, Edward R. Kempson, and Roberto L. Reyes Gaskin The Agence Française de Développement (AFD) has issued a new Sustainable Development Bond Framework (the Framework) that establishes bond eligibility criteria based on fundamental principles, … Continue Reading
The delay may complicate the regulatory landscape for sustainable finance as the EU moves toward a standardized classification system. By Paul A. Davies, Nicola Higgs, and Michael D. Green The UK government (government) has delayed a decision on whether it will adopt the EU’s taxonomy of sustainable finance activities (the Taxonomy) as the UK approaches … Continue Reading
Do European Commission ambitions signal a new, more sustainable direction of travel for the EU and globally? By Paul Davies and Michael Green On 27 May 2020, the European Commission (the Commission) announced a €750 billion stimulus fund aimed at helping the economies of the EU member states recover from the shock sustained as a … 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
The Initiative aims to grant investors, consumers, and other stakeholders a clearer picture of companies’ non-financial performance. By Paul A. Davies and Michael D. Green On 30 January 2019, the European Commission began a consultation process on a potential initiative to revise and improve the Non-Financial Reporting Directive (NFRD) (the Initiative). The Commission has not … Continue Reading
