An overhaul of the UK consumer law landscape is on the horizon, with the consumer law provisions of the Digital Markets, Competition and Consumers Act 2024 set to take effect on 6 April 2025.
By Fiona Maclean, David Little, Irina Vasile, and Sean Newhouse
The Digital Markets, Competition and Consumers Act 2024 (DMCCA) represents a significant shift in the UK’s consumer protection regime. By introducing new enforcement powers and substantive obligations on top of a foundation
The guidance clarifies obligations, shares steps businesses should take, and reinforces reporting to combat modern slavery.
By Paul A. Davies, Michael D. Green, James Bee, and Toon Dictus
On 25 March 2025, the UK Home Office published its updated Transparency in Supply Chains (TISC): Statutory Guidance (the Guidance), which provides new and detailed recommendations to help organisations comply with Section 54 of the Modern Slavery Act 2015 (MSA). The Guidance includes clearer expectations and practical tips designed
Goods imported into the UK from countries with a lower or no carbon price will face a levy by 2027.
By Paul A. Davies, Michael D. Green, and James Bee
On 18 December 2023, the UK government announced a proposal for a new carbon border adjustment mechanism (UK CBAM). The announcement follows extensive consultation earlier this year on possible measures to mitigate carbon leakage risks and aims to support the UK’s decarbonisation efforts.
The UK has made a number of decarbonisation commitments including reaching net zero by 2050. These commitments to decarbonise can be undermined by “carbon leakage”, in which production of goods and associated emissions move from a jurisdiction with more ambitious climate policies (which add costs to carbon-intensive processes) to another jurisdiction with less ambitious policies, resulting in an overall negative impact on the carbon intensity of the processes/goods themselves. The UK CBAM (or other form of carbon tax) seeks to address this issue by aiming to put a fair price on the carbon emitted during the production of certain carbon-intensive goods entering the UK.
The FCA has set out good and poor practices for asset managers to consider in relation to funds with ESG or sustainable characteristics.
By Nicola Higgs, Anne Mainwaring, and Charlotte Collins
On 16 November 2023, the FCA published the findings from its review of how asset managers have been embedding current regulatory expectations regarding the design, delivery, and disclosure of funds marketed as having ESG or sustainable characteristics.
With the FCA yet to finalise its Sustainability Disclosure Requirements (SDR) and investment labelling regime, it reviewed authorised fund managers’ (AFMs’) compliance with existing regulatory requirements, including the Guiding Principles set out in the Dear Chair letter issued in July 2021 (see this Latham blog post). The recently implemented Consumer Duty has added an extra dimension for AFMs to consider since the Guiding Principles were issued. The FCA highlights that the consumer understanding outcome is particularly relevant for AFMs providing ESG or sustainable funds; under this outcome, firms need to provide investors with the information they need at the right time and present it in a suitable way.
The framework claims to set the “gold standard” for companies to contribute to the net zero transition while emphasising ambition, action, and accountability.
By Paul A. Davies, Michael D. Green, and James Bee
The UK Transition Plan Taskforce (TPT) launched its transition plan disclosure framework (the Framework) at the London Stock Exchange on 9 October 2023. The Framework encourages businesses to create transition plans for a low greenhouse gas (GHG) emissions economy. It also seeks to help companies and financial institutions create consistent and comparable disclosures on their climate transition plans.
While initially voluntary, the Framework is expected to become mandatory for certain entities in the UK through incorporation into regulatory frameworks.
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 of international businesses and other stakeholders engaging with this issue. The event provided a platform to explore:
(1) The key drivers of greenwashing complaints
(2) The challenges organisations face when trying to define and explain their sustainability plans (including against the backdrop of rapidly evolving reporting guidelines)
(3) The associated litigation trends as observed globally
The panel included the Honourable Mrs Justice Cockerill DBE (Commercial Court Judge, High Court), Sophie J. Lamb KC (Partner, Latham & Watkins), Adam Heppinstall KC (Barrister, Henderson Chambers), and Meghan Sheehan (Director and Head of ESG and Sustainability, Kekst CNC).
This blog post summarises the key themes of discussion that took place and provides interesting insights as to what may lie ahead.
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 latest Green Finance Strategy paper.
The government announced as part of the Edinburgh Reforms last year that HM Treasury would consult on a potential regulatory regime for ESG ratings providers. Now HM Treasury is seeking views on whether such a regime should be introduced, and what its potential scope should be. The government is not proposing to regulate ESG data providers for the time being. The consultation is open until 30 June 2023; no further timetable has been set at this stage but it could take a couple of years for any new regime to be finalised and take effect.
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 FCA, have been focused on diversity and inclusion as regulatory issues for some time. According to the regulators, research shows there is a positive correlation between increased diversity and inclusion and better outcomes in risk management, conduct, culture, and innovation. Therefore, improving diversity and inclusion in financial services is seen as tying in closely with the regulators’ objectives. In the Discussion Paper, the regulators consider diversity and inclusion not only in terms of how a firm is run internally, but also how the firm serves its customers.
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 and “turn the UK into the world’s number one centre for green technology and finance, creating the foundations for decades of economic growth”. The ten-point plan will mobilise £12 billion of government investment — and potentially three times as much from the private sector — while aiming to create 250,000 jobs in the UK.
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) in 2015 as a mechanism to develop an approach for companies to disclose climate change matters. The TCFD offers companies guidelines and disclosure recommendations for providing information to investors, so that companies can provide more consistent, comparable data. The TCFD also promotes climate-related scenario analysis and the integration of climate-related risks into risk-management processes.