Pending rulemaking set to limit ESG-focused investments by ERISA plan fiduciaries, as DOL’s concurrent letters raise questions. By Paul A. Davies, Paul M. Dudek, and Kristina S. Wyatt Letters to Registered Investment Advisors (RIAs) The US Department of Labor (DOL) has reportedly sent letters[1] to several registered investment advisors seeking information about their use of … Continue Reading
A rating agency accepted a preliminary injunction regarding a disputed corporate sustainability rating. By Paul A. Davies, Michael D. Green, Joachim Grittmann, and Alexander Wilhelm As reported by a number of German newspapers and the environmental press, a dispute between the US proxy advisory firm Institutional Shareholder Services (ISS) and the German industrial image processing … 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
Policy makers and regulators seem keen to adopt both a “carrot” and “stick” approach to channelling private finance sustainably. Financial services regulators have been particularly vocal in the last 12 months, specifically about the impact on the financial services sector as the world experiences, and attempts to respond to, climate change. Mark Carney, outgoing governor … Continue Reading
Bank of England Governor identifies three areas of improvement in creating a sustainable finance system. By Paul A. Davies and Michael D. Green On September 24, 2019, the Bank of England (BoE) published two speeches given by its governor, Mark Carney, in which he calls for climate change-related risks and resilience to be brought into the heart of … Continue Reading
Risk and opportunities come with ESG commitments, which include advancing the SDGs. By Sara K. Orr, Kristina S. Wyatt, and Bobbi-Jo B. Dobush In a recent article, Latham lawyers highlighted the increasing importance of environmental, social, and governance (ESG) issues in corporate decision-making and how companies are linking ESG issues to the United Nations’ 2030 … Continue Reading
Companies should conduct thorough due diligence in light of closer scrutiny from stakeholders and governmental and non-governmental bodies. By James Inness and Natasha Hamilton-Foyn Companies are facing increasing pressure to report on environmental, social, and governance (ESG) matters in terms of their legal obligations, stakeholder pressure, and reputational issues. Companies are subject to both mandatory … Continue Reading
New requirements build on China’s rapid progress in green finance to increase transparency across the market By Paul Davies, Bridget Reineking and Andrew Westgate The China Securities Regulatory Commission (CSRC), in collaboration with China’s Ministry of Environmental Protection, has introduced new requirements that, by 2020, will mandate all listed companies and bond issuers to disclose environmental, … Continue Reading
By Paul Davies, Bridget Reineking, and Andrew Westgate China has issued numerous green policies in an effort to support President Xi’s signature “One Belt, One Road” initiative, which aims to mitigate environmental and social risks arising from China’s overseas lending. Although few of these policies are legally binding, they reflect China’s heightened focus on environmental … Continue Reading
By Paul Davies, Bridget Reineking, and Andrew Westgate The Chinese government has announced a US$4 trillion investment in developing infrastructure globally under the “Belt and Road Initiative” (BRI). Under the BRI the Chinese government will spend US$750 billion on overseas investments in the next five years alone. Although China often cites the BRI as the … Continue Reading
By Paul Davies and Michael Green The public trust doctrine is the principle that certain natural and cultural assets are preserved for public use and that it is the government’s obligation to protect and regulate these, both now and for future generations. Although the doctrine is established in English common law, it is not regularly … Continue Reading
By Paul Davies and Aaron Franklin Royal Philips, a health technology company, has recently agreed to an innovative revolving credit facility agreement with a margin linked to the company’s year-on-year sustainability performance improvement. The agreement was entered into by a consortium of 16 international banks (led by ING, as Sustainability Coordinator) and provides for a … Continue Reading
