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
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 proposals form part of the Green Deal Industrial Plan and aim to scale up technology and materials for the energy transition. By Paul A. Davies, Beatrice Lo, JP Sweny, Alexander Buckeridge-Hocking, Michael D. Green, and James Bee On 16 March 2023, the European Commission (Commission) formally proposed two legislative initiatives and announced the development … Continue Reading
The consultation seeks feedback on its “measures-based approach” to classifying industrial activities, as well as “Do No Significant Harm” criteria. By Paul A. Davies, Farhana Sharmeen, Michael D. Green, and James Bee The Green Finance Industry Taskforce (GFIT) was convened by the Monetary Authority of Singapore (MAS) and includes representatives from financial institutions, corporates, and … Continue Reading
The Plan aims to “simplify, accelerate and align incentives to preserve the competitiveness and attractiveness of the EU as an investment location for the net-zero industry”[1]. By Paul A. Davies, Michael D. Green, and James Bee On 1 February 2023, the European Commission (Commission) presented a proposal for a Green Deal Industrial Plan for the Net-Zero Age (the … 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
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
The People’s Bank of China announced a collaboration with the European Union to adopt a common taxonomy for green investments. By Paul A. Davies, Nicola Higgs, and Edward R. Kempson On 21 March 2021, the People’s Bank of China (PBC) announced that China is working with the European Union to adopt a common green taxonomy … 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
Recent developments show how innovative sustainable finance instruments can help the transition to greener financial markets. By Paul A. Davies and Edward R. Kempson The EU Taxonomy Regulation[1] (the Regulation), which entered into force in July 2020, is one of the most significant developments in sustainable finance. The Regulation creates a classification system for green … Continue Reading
The plan promises 250,000 jobs and emphasises a “green industrial revolution” to stimulate a post-pandemic economic recovery. By Paul A. Davies and Michael D. Green On 17 November 2020, UK Prime Minister Boris Johnson announced a ten-point plan as part of the government’s initiative to “build back better”. The plan aims to bolster the economy … 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 inquiry seeks further evidence on how and whether the government’s response to COVID-19 should take green ambitions into account. By Paul A. Davies and Michael D. Green On 24 July 2020, the UK Treasury Committee (the Committee) relaunched its inquiry into decarbonisation of the UK economy and green finance.… Continue Reading
The delay may complicate the regulatory landscape for sustainable finance as the EU moves toward a standardized classification system. By Paul A. Davies, Nicola Higgs, and Michael D. Green The UK government (government) has delayed a decision on whether it will adopt the EU’s taxonomy of sustainable finance activities (the Taxonomy) as the UK approaches … Continue Reading
Do European Commission ambitions signal a new, more sustainable direction of travel for the EU and globally? By Paul Davies and Michael Green On 27 May 2020, the European Commission (the Commission) announced a €750 billion stimulus fund aimed at helping the economies of the EU member states recover from the shock sustained as a … Continue Reading
Governments are under pressure to ensure that any financing used to assist the economic recovery from COVID-19 embeds climate change policy. By Paul A. Davies and Michael D. Green The economic impact of COVID-19 has required unprecedented state intervention and support for companies and individuals in countries around the world. Now, certain climate policy advisors … Continue Reading
MEE declares full steam ahead on China’s environmental initiatives, including an NGDF, private sector finance, Yangtze River conservation, and the social credit system. By Paul A. Davies and Zoe Liu Xu Bijiu, director general of the general office of China’s Ministry of Ecology and Environment (MEE), has given the clearest signal to date that China’s … Continue Reading
The formal adoption reflects the EU’s acknowledgement that a robust system of sustainable finance will be essential to the proposed capital markets union. By Paul A. Davies and Michael D. Green On 8 November 2019, the Council of the EU published a press release announcing the adoption of legislative reforms that aim to enhance the … Continue Reading
Launched ahead of the UN Climate Action Summit in New York, the PRB provides a global framework for a sustainable banking system. By Paul A. Davies and Michael D. Green On 22 September 2019, the United Nations and a group of 130 banks from 49 countries launched the UN Principles for Responsible Banking (PRB) to … Continue Reading
Proposed revisions to the Equator Principles 3 include human rights, social risk, and climate change. By James Barrett, Paul A. Davies, Joel H. Mack, and Michael D. Green The Equator Principles Association (EP Association) recently released the draft text of the Equator Principles (EPs) version 4 (EP4). The EP Association intend the draft text to … Continue Reading
Green Finance Strategy builds on the Green Finance Taskforce report, highlighting the City of London’s role in delivering a green economy. By Paul A. Davies and Michael D. Green On July 2, 2019, the UK government published its Green Finance Strategy (Strategy), subtitled “Transforming Finance for a Greener Future.” The document outlines how the finance … Continue Reading
Banks to disclose climate alignment of shipping portfolios with IMO’s strategy of 50% emissions reduction by 2050. By Paul A. Davies and Michael D. Green On June 18, 2019, a group of 11 banks — including Citi, Societe Generale, DNB, Citigroup, ABN Amro, and ING — announced the adoption of the Poseidon Principles (PPs). The … Continue Reading
