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
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 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
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 UK citizens’ assembly identifies overarching principles and makes specific recommendations for achieving the environmental goal. By Paul A. Davies and Michael D. Green Background The Climate Assembly UK has published its report on how the UK can achieve its statutory target for net zero carbon emissions by 2050. The report, which was released on … Continue Reading
The government provides further details on UK carbon pricing after Brexit. By Paul A. Davies and Michael D. Green On 14 July 2020, the UK government published the draft Greenhouse Gas Emissions Trading Scheme Order 2020 (the Order), establishing a framework for the potential UK Emissions Trading System (UK ETS). Subsequently, on 21 July 2020, … Continue Reading
The proposals outline the potential new UK system after Brexit, which could be linked to the EU Emissions Trading System. By Paul Davies and Michael Green On 1 June 2020, the UK’s Department for Business, Energy and Industrial Strategy (BEIS) published proposals outlining a new UK-wide Emissions Trading System (UK ETS) contained within a response … Continue Reading
The announcements signal how both the Net Zero Review and the IETF will impact the UK’s transition to net zero. By Paul Davies and Michael Green On 2 November 2019, the UK government announced further details on two initiatives focused on helping the UK reach net zero greenhouse gas emissions by 2050. The first of … Continue Reading
The Bill proposes a post-Brexit system of environmental governance to oversee new powers and regulations in four environmental law areas. By Paul A. Davies and Michael D. Green On 15 October 2019, the UK government published the final draft of Environment Bill 2019–20 (the Bill), which aims to set out the government’s environmental priorities post-Brexit. … Continue Reading
Changes to the Investment Regulations mean greater ESG disclosure requirements in statements of investment principles. By Paul A. Davies, Michael D. Green, and Shaun Thompson In response to trustees’ uncertainty about how environmental, social, and governance (ESG) factors — as non-financial factors — apply to pension schemes, the Law Commission and the Department for Work … 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
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
The seven-week inquiry will assess the potential impact of decarbonization on the UK economy, and examine opportunities for the growth of green finance. By Paul A. Davies and Michael D. Green On World Environment Day, June 5, 2019, the UK Treasury Committee (the Committee) launched an inquiry into the decarbonization of the UK economy and … Continue Reading
The UK is the first major economy and G7 country to adopt the target following the CCC’s May 2019 recommendation. By Paul A. Davies and Michael D. Green Adoption of 2050 Net-Zero Target UK Prime Minister Theresa May has confirmed that the UK government will adopt the Committee on Climate Change’s (CCC’s) recommended net-zero target … Continue Reading
The Committee has recommended that the UK government take the lead in reaching net-zero, through social, financial, and policy change. By Paul A. Davies and Michael D. Green The Committee on Climate Change (CCC), a statutory body that advises the UK government on carbon budgets, has recommended that the UK government should commit to cutting … Continue Reading
Mark Carney’s latest speech discusses the importance of green finance in transitioning to a low-carbon economy. By Paul A. Davies and Michael Green In September 2015, Bank of England Governor Mark Carney delivered his milestone Tragedy of the Horizon (Tragedy) speech. This speech warned that climate change will lead to financial crises, falling living standards, … Continue Reading
The revised Code is likely to encourage a more robust and substantive review of ESG issues by institutional investors. By Paul A. Davies and Michael Green Background The UK Stewardship Code (the Code) was originally published in 2010 following a review of corporate governance. The Financial Reporting Council (FRC) has responsibility for the Code, and … Continue Reading
The growth in the level of undertakings throughout 2018 tallies with a general increase in environmental enforcement. By Paul A. Davies and Michael D. Green The Environment Agency has released data indicating that enforcement undertakings in England and Wales reached more than £2.2 million in 2018 — the highest-ever levels within a single year. The amounts … Continue Reading
Initiative will advance the UK’s Paris Agreement targets by serving as a “one-stop shop for world-leading climate science, and for capital.” By Paul A. Davies and Michael D. Green UK Chancellor, Philip Hammond, has announced plans to launch a Green Finance Institute (GFI), through funding from both the UK government and the City of London Corporation. … Continue Reading
Relief from the mandatory scheme will reduce the administrative burden on non-energy intensive companies. By Paul A. Davies and Michael D. Green The Carbon Reduction Commitment (CRC) — which first came into operation on 1 April 2010 — will be abolished at the end of the 2018-19 compliance year, pursuant to the CRC Energy Efficiency … Continue Reading
Increasingly, financial institutions are looking to align business decisions with environmental principles. By Paul A. Davies and Michael D. Green ABN AMRO, ING, and Rabobank have teamed up to publish guidelines for investing in the circular economy. The banks have designed the guidelines to help financial services companies around the globe transition towards a circular … Continue Reading
After neglecting to heed an initial warning, six Member States may face financial penalties if they do not reduce pollution levels. By Paul A. Davies, Michael D. Green, and Alexander Wilhelm The European Commission (EC) has referred the UK, France, Germany, Hungary, Italy, and Romania to the European Court of Justice (ECJ) for failing to … Continue Reading
Consultation document proposes replacing the European Commission with a new environmental watchdog, among other recommendations. By Paul A. Davies and Michael D. Green The UK government has announced a consultation in relation to the proposed new Environmental Principles and Governance Bill, which aims to ensure maintained and strengthened environmental protection following the UK’s exit from … Continue Reading
