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ESG in Fund Finance: The Next Phase April 2024 - ESG in Fund Finance

In the first of our series “ESG in Fund Finance” articles, we summarise and examine the recent publication “A Guide to the Application of Sustainability-linked Loan Principles in Fund Finance”....more

EU Council Adopts New European Green Bond Standard

On October 25, 2023, the European Council adopted the European Green Bond Standard (EU GBS), a new voluntary regime for green bonds that aims to solidify the EU's position as a leader in sustainable finance, reduce...more

KPMG Research Shows Significant Proportion of Companies Not Ready for ESG Data Assurance Requirements

According to a survey conducted by KPMG, 75% of companies are not in a position to obtain third-party assurance on their published ESG data. This is despite the fact that two-thirds of companies must disclose such data, or...more

ISS: Challenges Remain in Interoperability of Sustainability Disclosure Standards

In its annual Global Regulatory Update (the 2023 Update Report), Institutional Shareholder Services (ISS) determined that the application of different ESG disclosure and reporting frameworks presents significant challenges...more

EFRAG and GRI Announce Interoperability in Impact Reporting Schemes

The European Financial Reporting Advisory Group (EFRAG) and the Global Reporting Initiative (GRI) released a joint statement announcing the interoperability of their respective reporting standards, enabling companies subject...more

Euronext Launches New Sustainable Investment Tools and ESG Initiatives

In September 2023, pan-European stock exchange and market infrastructure provider Euronext announced the imminent launch of a range of ESG tools and initiatives focused on sustainable finance, including its intention to...more

Investor Group FAIRR Calls on G20 Finance Ministers to Reform Agricultural Subsidies Regimes

Ahead of September 2023’s G20 summit in Delhi, the Farm Animal Investment Risk & Return (FAIRR) Initiative called on G20 Finance Ministers to reform agricultural subsidies to enable countries to meet their net zero greenhouse...more

European Commission Consultation on SFDR

On 14 September 2023, the European Commission published a targeted consultation and a public consultation on the implementation of Regulation (“EU”) 2019/2088 on sustainability-related disclosures in the financial services...more

United Nations Releases First Global Stocktake on Parties’ Achievements Under the Paris Agreement

On September 8, 2023, the United Nations published its first Global Stocktake report on the progress made by nations in addressing climate change. The report, which represents the first comprehensive assessment of nearly 200...more

IAASB Launches Consultation on ISSA 5000, the Proposed Global Sustainability Assurance Standard

In August 2023, the International Auditing and Assurance Standards Board (IAASB) issued its proposed International Standard on Sustainability Assurance (ISSA) 5000, “General Requirements for Sustainability Assurance...more

Investor Groups Raise Concerns Over European Sustainability Reporting Standards

On July 31, 2023, the European Commission adopted the long-anticipated European Sustainability Reporting Standards (ESRS) for use by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). The...more

UK Announces Plans to Publish Sustainability Disclosure Standards by July 2024

In August 2023, the UK’s Department of Business and Trade (DBT) announced the creation of new sustainability rules that are intended to align with the IFRS Sustainability Disclosure Standards issued by the International...more

EU Commission Releases 2023 Strategic Foresight Report Focusing on Environmental and Social Well-Being Objectives

In July 2023, the European Commission published its annual Strategic Foresight Report (the Report), focusing on how sustainability and people’s wellbeing can help to achieve President von der Leyen’s six priorities for the...more

Survey Finds More Executives’ Compensation Tied to ESG Goals, But Progress Slow in Reaching Them

A new study by the IBM Institute for Business Value found that approximately half of CEOs and their executive teams surveyed have their compensation tied to the organizations’ performance in relation to sustainability goals....more

France and UK Announce Roadmap to Boost Biodiversity Credit Market

In June 2023, the UK and France announced a joint plan to launch a new biodiversity credits scheme. Through the Global Biodiversity Credits Roadmap, the two countries have pledged to support private sector biodiversity...more

EU Commission Adopts Final Sustainability Reporting Rules

On July 31, 2023, the European Commission announced its adoption of the European Sustainability Reporting Standards (ESRS) for companies subject to the Corporate Sustainability Reporting Directive (CSRD). The long-awaited...more

ESMA Outlines Expected Sustainability Disclosures in Prospectuses

On July 11, 2023, the European Securities and Markets Authority (ESMA) issued a Public Statement outlining its expectations for sustainability-related disclosures to be incorporated into prospectuses. In its statement, ESMA...more

Basel Committee Issues Guidance on Core Principles for Effective Banking Supervision

In April 2022, the Basel Committee on Banking Supervision (the Basel Committee) began a review of “the core principles for effective banking supervision” (Core Principles or CP). Last month, the Basel Committee published...more

UK Regulator Raises Concerns over the Sustainability-Linked Loans Market, Including Potential Greenwashing

On June 29, 2023, the Financial Conduct Authority, the UK’s financial markets regulator, released a summary of its concerns over the market for sustainability-linked loans (SLLs). Responding to concerns that banks overstate...more

EFRAG Seeks Input on Draft Response to ISSB’s Proposed Internationalization of Accounting Standards

On June 2, 2023, the European Financial Reporting Advisory Group (EFRAG) issued a draft letter requesting comments on the International Sustainability Standards Board’s (ISSB) proposal to improve the international...more

Reports Highlight UK Private Sector Preference for Mandatory ESG Reporting

UK regulators, specifically the Institute of Chartered Accountants of Scotland (ICAS) and the Financial Reporting Council (FRC), recently released reports regarding the demand for mandatory environmental, social, and...more

Global Banking Regulators Plan to Develop Short-Term Climate Scenarios

The Network of Central Banks and Supervisors for Greening the Financial System (NGFS) is assembling a team of modelling experts to develop short-term climate scenarios that capture the adverse implications in the near term of...more

Sustainable Markets Initiative Private Equity Group Issues Guidance on ESG Metrics

In May 2023, the Sustainable Markets Initiative (SMI) published a new guide setting out how to use ESG-related metrics effectively in private markets (the ESG Metrics Guide), and how measuring and monitoring these metrics can...more

ECB Reports Progress, Identifies Gaps in Banks’ Climate-Related Disclosures

In April 2023, the European Central Bank (ECB) published its 2022 assessment of climate-related and environmental risk disclosures of EU-based banks, finding that while most “significant institutions” “now disclose at least...more

IAASB Public Consultation on Proposed Sustainability Assurance Standard to Begin in July

In April, the International Auditing and Assurance Standards Board (IAASB) announced that the public consultation period for its proposed new sustainability assurance standard will begin in late July or early August 2023...more

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