The EU regulators are reviewing the Sustainable Finance Disclosure Regulation introduced in 2021, exploring the need for potential additional adjustments. By Paul A. Davies, Nicola Higgs, Michael D. Green, James Bee, and Anne Mainwaring On 14 September 2023, the European Commission initiated a consultation on its sustainable financial disclosure practices, seeking feedback on Regulation (EU) … Continue Reading
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James Bee, and Aleksandra Dulska In July 2023, the Australian Competition and Consumer Commission (ACCC) published draft guidance (Draft Guidance) to improve the … Continue Reading
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 country’s financial authorities may evaluate potential regulatory efforts in conjunction with the Taxonomy following its rollout. By Austin J. Pierce In March 2023, Mexico published a finalized version of the country’s Sustainable Taxonomy (the Taxonomy), growing the increasing number of jurisdictions that have developed such a framework. At their core, these frameworks aim to … 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
Companies interested in the scope of environmental marketing claims and mitigating potential litigation risks should act fast as the window for comments is closing soon. By Paul Davies, Robin M. Hulshizer, Jacqueline Y. Zhang, Danny Dvorak, Julia Hatcher, and Tony Kim Latham & Watkins presents a blog series on the Federal Trade Commission’s Guides for … Continue Reading
Navigating a global patchwork of ESG regulation and enforcement while preparing for greenwashing claims and other ESG litigation will likely be among the main concerns for companies in 2023. By Paul Davies, Sarah Fortt, and Betty M. Huber Both anticipated and less expected changes occurred across the ESG landscape in 2022. Anticipated changes included regulatory … Continue Reading
The updated Green Guides will likely impact legal liability for environmental marketing claims in the years to come. By Jean-Philippe Brisson, Paul A. Davies, Sarah E. Fortt, Julia A. Hatcher, Betty M. Huber, Robin M. Hulshizer, Michael Dreibelbis, Michael D. Green, Danny Dvorak, Brett Frazer, Austin J. Pierce, Angela Walker, and Jacqueline Y. Zhang Latham … Continue Reading
The FCA hopes the proposals will protect consumer trust in ESG-related financial products and help consumers navigate the increasingly complex ESG-related financial market. By Paul A. Davies, Nicola Higgs, Michael D. Green, James Bee, and Anne Mainwaring On 25 October 2022, the UK’s Financial Conduct Authority (FCA) issued a consultation paper (the Consultation Paper) on Sustainability Disclosure Requirements (SDR) … Continue Reading
HM Treasury’s Transition Plan Taskforce aims to influence international standard setting and make the UK the world’s first net zero-aligned financial centre. By Paul A. Davies, Michael D. Green, Nicola Higgs, Anne Mainwaring, James Bee, and Dianne Bell On 25 April 2022, HM Treasury (HMT) announced the launch of the UK Transition Plan Taskforce (TPT) … Continue Reading
Guidance will help borrowers, lenders, and advisers in applying Sustainability Linked Loan Principles. By Paul Davies, Karan Chopra, Edward Kempson, and Sindhoo Vinod On 28 July 2021, the Loan Market Association (LMA) and European Leveraged Finance Association (ELFA) published a best practice guide (the Guide) to Sustainability Linked Leveraged Loans (SLLLs). The Guide provides practical … Continue Reading
Proposed regulation will require companies to substantiate their environmental footprint claims, seeking to ensure green claims are more reliable. By Paul A. Davies and Michael D. Green Background On 27 August 2020, the European Commission (the Commission) launched a public consultation on a possible proposal on substantiating green claims about products or services. This follows … 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
Technical Expert Group recommends minimum requirements for two new benchmarks. By Paul A. Davies and Michael D. Green On 30 September 2019, the EU Technical Expert Group on Sustainable Finance (TEG) published its final report on climate benchmarks and environmental, social, and governance (ESG) disclosures (the Report), as well as a summary of the Report. … Continue Reading
