A wide-ranging report encourages regulators to take a concerted approach to combat climate-related risks to the US financial system. By Jean-Philippe Brisson, Paul A. Davies, Nicola Higgs, Malorie R. Medellin, and Deric Behar On October 21, 2021, the Financial Stability Oversight Council (FSOC) published a lengthy report on Climate-Related Financial Risk (the Report), marking the … 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
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
Bill calls for new ESG disclosure requirements in the Securities Exchange Act of 1934 and formation of a Sustainable Finance Advisory Committee. By Paul A. Davies, James R. Barrett, and Kristina S. Wyatt On September 20, 2019, the US House Financial Services Committee passed H.R. 4329, the ESG Disclosure Simplification Act of 2019. The bill … Continue Reading
To aid potential investors, ELFA has called for a coordinated approach to ESG disclosure and analysis amongst leveraged finance borrowers. By Paul A. Davies and Michael D. Green Environmental, social, and governance (ESG) issues are playing an increasing role in the global leveraged finance market. As a result, borrowers who wish to access this market … Continue Reading
Mark Carney’s latest speech discusses the importance of green finance in transitioning to a low-carbon economy. By Paul A. Davies and Michael Green In September 2015, Bank of England Governor Mark Carney delivered his milestone Tragedy of the Horizon (Tragedy) speech. This speech warned that climate change will lead to financial crises, falling living standards, … Continue Reading
A new regulation will detail how financial market participants and financial advisors must incorporate ESG risks and opportunities in their procedures. By Paul A. Davies and Michael D. Green The European Union (EU) is committed to being the global leader in fighting climate change and implementing the Paris Agreement. Since climate change is increasingly viewed … Continue Reading
The revised Code is likely to encourage a more robust and substantive review of ESG issues by institutional investors. By Paul A. Davies and Michael Green Background The UK Stewardship Code (the Code) was originally published in 2010 following a review of corporate governance. The Financial Reporting Council (FRC) has responsibility for the Code, and … Continue Reading
A new report by ShareAction, a charity and pressure group, reflects growing demands for companies to disclose ESG and climate-related information. By Paul A. Davies and Michael D. Green Background Pressure continues to grow on asset managers and their advisors to incorporate companies’ environmental, social, and governance (ESG) performance and climate risks in their screening … Continue Reading
Companies with stronger ESG standards usually perform better financially, according to recent research. By Paul A. Davies and Michael D. Green A recent report by Axioma, provider of enterprise market risk and portfolio analytics solutions, found that companies with better environmental, social, and corporate governance (ESG) standards “…often outperform the market” and exceed their financial … Continue Reading
