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
The German government has adopted draft law to ensure corporate compliance with human rights in the supply chain. By Paul A. Davies, Michael D. Green, Joachim Grittmann, Stefan Bartz, and Alexander Wilhelm On 3 March 2021, the German government adopted the draft Corporate Due Diligence in Supply Chains Act (Gesetz über die unternehmerischen Sorgfaltspflichten in … 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
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 UK Government presents initiatives designed to green the UK economy and bolster attractiveness as an international financial centre. By Paul A. Davies and Michael D. Green On 9 November 2020, Rishi Sunak, Chancellor of the Exchequer, announced several initiatives designed to help the UK tackle climate change, while maintaining its position as an “open, … 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 trustees of the IFRS Foundation have published a consultation paper to assess demand for global sustainability standards. By Paul A. Davies and Michael D. Green On 30 September 2020, the International Financial Reporting Standards Foundation (the Foundation), a not-for-profit organisation that develops global accounting standards, launched a consultation paper seeking to assess demand for … Continue Reading
The initiative includes a competition law sustainability “sandbox” in which market participants could team up to work on sustainable business projects. By David Little and Pierre Bichet The Greek Competition Authority (HCC) has announced a public consultation on how competition law rules might be adapted to promote more sustainable business practices. The HCC published a … Continue Reading
Leading sustainability and integrated reporting organisations plan to provide joint market guidance, in an effort to achieve comprehensive harmonisation. By Paul A. Davies and Michael D. Green A group of leading sustainability and integrated reporting organisations — including the Carbon Disclosure Project (CDP), the Climate Disclosure Standard Board (CDSB), the Global Reporting Initiative (GRI), the … 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
