The ACCC sets out best marketing practices and companies’ obligations under the Australian Consumer Law, including strict penalties that may follow. By Paul A. Davies, Sophie J. Lamb KC, Michael D. Green, James Bee, and Aleksandra Dulska In July 2023, the Australian Competition and Consumer Commission (ACCC) published draft guidance (Draft Guidance) to improve the … Continue Reading
NA100 aims to propel corporate action on natural capital through investor engagement similar to the work of initiatives like Climate Action 100+. By Austin J. Pierce On June 26, 2023, the Secretariat and Launching Investor Group behind Nature Action 100 (NA100) announced a set of focus areas and priority sectors for engagement with companies on … Continue Reading
The Guidelines build on current social, environmental, and technological issues facing businesses following the last update in 2011. By Paul A. Davies, Michael D. Green, and James Bee The Organisation for Economic Co-operation and Development (OECD) released updated Guidelines for Responsible Business Conduct on 8 June 2023 (the OECD Guidelines). Background to the OECD Guidelines … Continue Reading
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
LIDW23 member-hosted event provided insights into current and future trends in the greenwashing space. By Sophie J. Lamb KC and Aleksandra Dulska Latham & Watkins recently hosted a panel discussion during London International Disputes Week on the topic of greenwashing and how English law continues to evolve and adapt in order to meet the needs … 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
Proposed legislation would impose new constraints and regulatory obstacles for renewable energy, as conservative responses to ESG-related initiatives continue to morph across the US. By Sarah E. Fortt, Joshua W. Marnitz, and Austin J. Pierce The Texas legislature is considering several bills that could significantly impact both the regulatory landscape for renewable energy projects in … 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 regulator is concerned that ESG-related disclosures are not meeting expectations. By Nicola Higgs, Becky Critchley, Anne Mainwaring, Ella McGinn, and Charlotte Collins The FCA has published a Dear CEO letter sent to benchmark administrators on 20 March 2023, expressing concerns about the quality of their ESG-related disclosures. The FCA’s concerns are based upon a … Continue Reading
By Paul A. Davies, Edward R. Kempson, Luca Morreale, and Peter Neuböck Sustainable Finance Sustainable finance is the practice of redirecting public and private capital towards investments that support ESG goals and outcomes. The market dynamics of sustainable finance are driven by the need for enormous investments to support sustainable transitions and meet net zero … Continue Reading
The Guidance would increase expectations for regulated financial institutions to identify, measure, monitor, and control climate-related financial risks. By Betty M. Huber, Arthur S. Long, Pia Naib, Austin J. Pierce, and Deric Behar For the past few years, the New York State Department of Financial Services (DFS) Superintendent has prioritized setting the pace in climate … Continue Reading
By Paul Davies, Sarah Fortt, Betty M. Huber, Karmpreet Grewal, and Austin Pierce On January 4, 2023, the Office of Information and Regulatory Affairs released the Fall 2022 Regulatory Flexibility Agenda. The agenda includes several updates to the Securities and Exchange Commission’s plans for various ESG-related actions. A summary of primary ESG-related actions is provided below, … Continue Reading
The Council’s position includes a number of differences from the European Commission’s original proposal, including in relation to the requirement to diligence the broader value chain. By Paul A. Davies, Michael D. Green, and James Bee On 30 November 2022, the European Council (the Council) — which comprises the views of the EU Member State governments … Continue Reading
From 2024 at the earliest, more European and global companies will need to disclose their ESG activities in greater detail. By Paul A. Davies, Michael D. Green, and James Bee On 10 November 2022, the European Parliament adopted a final version of the Corporate Sustainability Reporting Directive (CSRD). The CSRD will require large EU companies … Continue Reading
The Corporate Sustainability Reporting Directive expands the existing sustainability reporting requirements and brings more companies under its scope. By Paul A. Davies, Michael D. Green, and James Bee On 21 June 2022, the European Parliament and European Council reached a provisional political agreement on the terms of the EU’s proposed Corporate Sustainability Reporting Directive (CSRD). The CSRD … Continue Reading
The Call for Evidence is one of a number of measures the EU is taking as it aims to strengthen the reliability of ESG ratings. By Paul A. Davies, Sarah E. Fortt, Betty M. Huber, Michael D. Green, and James Bee On 4 April 2022, the European Commission (Commission) published a call for evidence (Call for Evidence) … Continue Reading
Proposed changes seek to reflect the integration of sustainability considerations into MiFID II. By Nicola Higgs, Anne Mainwaring, Dianne Bell, and Charlotte Collins The European Securities and Markets Authority (ESMA) is consulting on updates to its Guidelines on the MiFID II suitability requirements, in light of upcoming changes that will embed sustainability considerations into the … Continue Reading
The policies aim to provide crucial guidance to public companies amid the growing importance of ESG in proxy voting. By Paul A. Davies, Michael D. Green, Andra Troy, and James Bee In late 2021, Institutional Shareholder Services (ISS) and Glass, Lewis & Co (Glass Lewis), the two leading proxy advisory firms, released updated policy documents … Continue Reading
The government also introduced transition plan requirements for companies to meet the UK’s 2050 net zero target. By Paul A. Davies, Michael D. Green, and James Bee On 3 November 2021, the International Financial Reporting Standards (IFRS) Foundation Trustees Chair, Erkki Liikanen, announced the long-awaited formation of the International Sustainability Standards Board (ISSB). The ISSB … 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
Discussion Paper opens debate on potential new rules to improve diversity in financial services. By Rob Moulton, David Berman, Paul Davies, and Charlotte Collins On 7 July 2021, the FCA, the PRA, and the Bank of England published a joint Discussion Paper on diversity and inclusion in the financial sector. The regulators, in particular the … 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
