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 program will include a multi-jurisdictional cap-and-invest program and aims to address environmental justice and equity concerns. By Jean-Philippe Brisson, Joshua T. Bledsoe, Benjamin Einhouse, and Brian McCall On December 21, 2020, the Governors of Massachusetts, Rhode Island, and Connecticut, as well as the Mayor of the District of Columbia, announced that their respective jurisdictions … 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
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
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
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 report lays down policies aimed at fostering carbon neutrality in the UK by 2050 and supporting Paris Agreement pledges. By Paul A. Davies and Michael D. Green On 9 December 2020, the UK Climate Change Committee (the Committee) published its 6th Carbon Budget (the Budget), as required under the Climate Change Act. The Budget … Continue Reading
A new report shows headway in reducing greenhouse gases and details the latest climate change policy developments. By Paul A. Davies and Michael D. Green On 30 November 2020, the European Commission (EC) adopted the EU Climate Action Progress Report Kick-starting the journey towards a climate-neutral Europe by 2050 (the Report). The Report, which is … 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 Chinese Communist Party’s policy plans include an increased focus on climate change and a more open trade environment. By Paul Davies, Ethan Prall and Andrew Westgate The Central Committee, the top-level authority of the Chinese Communist Party (CCP), recently concluded its Fifth Plenary Session and created China’s 14th Five Year Plan (the Plan). The … Continue Reading
As Chairman Clayton reaches the end of his tenure, Commissioners Lee and Crenshaw continue to push for SEC action on climate change. By Paul A. Davies, Paul M. Dudek, Ryan J. Maierson, and Kristina S. Wyatt Background In recent years, the market has witnessed a sharp divide both within the US Securities and Exchange Commission … Continue Reading
The annual report shows a considerable uptake in the adoption of climate-centred financial disclosures. By Paul A. Davies and Michael D. Green The Task Force on Climate-related Financial Disclosures (TCFD) published its Annual Report on TCFD-aligned disclosures by firms (Annual Report), on 29 October 2020. The TCFD was established by the Financial Stability Board (FSB) … Continue Reading
The FRC prompts boards, companies, and auditors to improve responses to climate change challenges through improved governance structure and narrative reporting. By Paul A. Davies and Michael D. Green On 10 November 2020, the Financial Reporting Council (FRC) published its findings (the Report) on its thematic review undertaken in 2020, concerning climate-related considerations that various … Continue Reading
Making Europe greener, fairer, and more sustainable is at the heart of the European Commission’s new work programme. By Paul Davies, David Little, Michael D. Green, and Pierre Bichet On 19 October 2020, the European Commission (Commission) published its Work Programme (Programme) for 2021. The Programme — “A Union of vitality in a world of … 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
President Xi Jinping promises to reduce carbon emissions in speech before the UN General Assembly. By Paul A. Davies, Michael D. Green, R. Andrew Westgate, and Jacqueline J. Yap On 22 September 2020, during a speech before the UN General Assembly, President Xi Jinping announced China’s commitment to become carbon neutral by 2060 and reaffirmed … Continue Reading
The UK citizens’ assembly identifies overarching principles and makes specific recommendations for achieving the environmental goal. By Paul A. Davies and Michael D. Green Background The Climate Assembly UK has published its report on how the UK can achieve its statutory target for net zero carbon emissions by 2050. The report, which was released on … Continue Reading
The Governor has issued an Executive Order with sweeping implications for the oil and gas industry and others. By Jean-Philippe Brisson, Joshua T. Bledsoe, Nikki Buffa, and Brian F. McCall On September 23, 2020, California Governor Gavin Newsom signed Executive Order N-79-20, which will have sweeping implications for the oil and gas industry, automakers, low-carbon … 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
Proposed regulation will require companies to substantiate their environmental footprint claims, seeking to ensure green claims are more reliable. By Paul A. Davies and Michael D. Green Background On 27 August 2020, the European Commission (the Commission) launched a public consultation on a possible proposal on substantiating green claims about products or services. This follows … 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
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 pioneering case seeks an injunction to restrain the government from further promoting exchange-traded bonds until it complies with its duty of disclosure. By Paul A. Davies and Michael D. Green On 22 July 2020, investors filed a class-action claim against the Australian government, alleging that it failed to disclose material climate change risks relating … Continue Reading
