Following the publication of the ISSB Standards, the IFRS Foundation will take over monitoring of companies’ climate progress from 2024. By Paul A. Davies, Michael D. Green, and James Bee On 10 July 2023, the International Sustainability Standards Board (ISSB) and Financial Stability Board (FSB) announced that the IFRS Foundation (the organisation that founded the … Continue Reading
The third version introduces several new disclosure recommendations ahead of what is supposed to be a “Paris moment” for biodiversity in Montreal. By Paul A. Davies, Michael D. Green, James Bee, and Austin Pierce As environmental ambitions continue to grow, much attention has focused on climate. A key focal lens for that has been the … Continue Reading
The second version includes guidance on metrics and how companies can conduct dependency and impact evaluation. By Paul A. Davies, Michael D. Green, Austin J. Pierce, and James Bee On 28 June 2022, the Taskforce on Nature-related Financial Disclosures (TNFD) released version 0.2 of its framework for nature-related risk and opportunity management and disclosure (the Framework). The announcement … Continue Reading
The move follows a number of similar standards that regulators and governments across the globe have proposed. By Paul A. Davies, Michael D. Green, and James Bee With effect from 1 June 2022, the Guidance for Enterprise ESG Disclosure (the Guidance), published by Beijing-based think tank China Enterprise Reform and Development Society (CERDS), is seeking to become the … 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
The standards are part of a global initiative to consolidate sustainability disclosures to help investors assess the value of companies. By Paul A. Davies, Sarah Fortt, Nicola Higgs, Betty M. Huber, Michael D. Green, and James Bee On 31 March 2022, the International Sustainability Standards Board (ISSB) released exposure drafts of the first two IFRS Sustainability Disclosure … Continue Reading
Corporate reporting (including SEC developments), climate change, energy transition, supply chain management, and the mitigation of ESG-related litigation risk are expected to be the leading ESG themes of this year. By Paul Davies, Nicola Higgs, Sophie Lamb QC, Ryan Maierson, Colleen Smith, Michael Green, Edward Kempson, James Bee, and Anne Mainwaring As expected, 2021 saw … Continue Reading
The regulator is inviting views on potential criteria for classifying and labelling investment products, and on further entity- and product-level sustainability-related disclosures. By David Berman, Paul A. Davies, Nicola Higgs, Anne Mainwaring, and Charlotte Collins On 3 November 2021, the FCA published a Discussion Paper (DP21/4) on UK Sustainability Disclosure Requirements (SDR) and product labels. … Continue Reading
The guidance offers clarification on key aspects of the TCFD’s recommendations on climate reporting. By Paul A. Davies, Michael D. Green, and James Bee On 14 October 2021, the Task Force on Climate-related Financial Disclosures (TCFD) released a new guidance document on climate-related metrics, targets, and transition plans (the Guidance). The Guidance seeks to support … Continue Reading
A snapshot of the global regulatory landscape in the context of ESG-related disclosures. By Nick Benson, David Berman, Paul A. Davies, Laura N. Ferrell, Simon Hawkins, Nicola Higgs, Farhana Sharmeen, Anne Mainwaring, Dominik Schoeneberger, Shirley Wong, and Charlotte Collins The global asset management community has long been among the leaders in recognising the investment and … Continue Reading
Both bourses are seeking to incorporate the TCFD recommendations into their sustainability reporting regimes, extending a trend of convergence in regional ESG reporting standards. By Paul A. Davies, Timothy Hia, and Sabrina Singh On August 26, 2021, the Singapore Exchange Regulation (SGX RegCo) released a consultation paper proposing amendments to the sustainability reporting (SR) regime … Continue Reading
The FCA is proposing a disclosure regime for asset managers, life insurers, and pension providers. By Paul Davies, Nicola Higgs, Victoria Sander, David Berman, Anne Mainwaring, and Charlotte Collins On 22 June 2021, the FCA published a Consultation Paper (CP21/17) on introducing climate-related financial disclosure rules and guidance for asset managers, life insurers, and FCA-regulated pension providers. The disclosure requirements would … Continue Reading
The FCA is consulting on extending its rules to standard listed issuers. By Paul A. Davies, Chris Horton, James Inness, Anna Ngo, and Charlotte Collins On 22 June 2021, the FCA published a Consultation Paper (CP21/18) on extending the application of the existing climate-related disclosure requirements for commercial companies with a UK premium listing to … 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
New rule will require listed companies to state whether they have made disclosures in accordance with the TCFD. By Paul A. Davies, Nicola Higgs, Chris Horton, and Michael D. Green On 21 December 2020, the Financial Conduct Authority (FCA) confirmed in a published Policy Statement[1] (the Statement) that it will introduce a new Listing Rule … Continue Reading
The annual report shows a considerable uptake in the adoption of climate-centred financial disclosures. By Paul A. Davies and Michael D. Green The Task Force on Climate-related Financial Disclosures (TCFD) published its Annual Report on TCFD-aligned disclosures by firms (Annual Report), on 29 October 2020. The TCFD was established by the Financial Stability Board (FSB) … Continue Reading
The FRC prompts boards, companies, and auditors to improve responses to climate change challenges through improved governance structure and narrative reporting. By Paul A. Davies and Michael D. Green On 10 November 2020, the Financial Reporting Council (FRC) published its findings (the Report) on its thematic review undertaken in 2020, concerning climate-related considerations that various … Continue Reading
The paper articulates common reporting metrics for sustainable value creation for companies reporting on ESG performance. By Paul A. Davies, Paul M. Dudek, Ryan J. Maierson, and Kristina S. Wyatt On September 22, 2020, the International Business Council (IBC) of the World Economic Forum (WEF), in collaboration with Deloitte, EY, KPMG, and PwC, published a … Continue Reading
Proposals to enhance climate-related disclosures include promoting the use of the TCFD recommendations. By Paul A. Davies, Nicola Higgs, Chris Horton, James Inness, and Michael D. Green On 6 March 2020, the UK’s Financial Conduct Authority (FCA) launched a consultation primarily focused on enhancing requirements on certain listed companies to make climate-related disclosures (the Consultation). … 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
Building a sustainable and competitive economy: an examination of proposals to improve ESG disclosures. By James R. Barrett, Paul A. Davies and Kristina S. Wyatt The US House Committee on Financial Services, Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets has held the first ever US Congressional hearing on environmental, social and governance (ESG) issues. … Continue Reading
