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
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 a...more
On June 18, 2023 Swiss citizens voted in favor of a new climate law intended to promote carbon neutrality by 2050. The Federal Act on Climate Protection Targets, Innovation and Strengthening Energy Security, known as the...more
8/3/2023
/ Climate Action Plan ,
Climate Change ,
Energy Policy ,
Energy Reform ,
Environmental Policies ,
Greenhouse Gas Emissions ,
Infrastructure ,
Oil & Gas ,
Pollution Control ,
Renewable Energy ,
Switzerland
In June 2023, the Science Based Targets initiative (SBTi) published a draft of its Financial Institutions Net Zero (FINZ) Standard to enable financial institutions to establish targets consistent with achieving net-zero...more
7/26/2023
/ Carbon Emissions ,
Climate Action Plan ,
Climate Change ,
Consultation Papers ,
Consumer Financial Products ,
Financial Institutions ,
Financial Services Industry ,
Financing ,
Net Zero ,
Paris Agreement ,
Renewable Energy
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
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
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
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
Following completion by the International Sustainability Standards Board (ISSB) of IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures), on...more
On June 6, 2023, the World Economic Forum (WEF) announced the formation of the Forum ISSB Preparers Group in partnership with the International Sustainability Standards Board (ISSB). The ISSB is a standard-setting...more
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
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
In April 2023, the Centre for Climate Finance & Investment and the International Energy Agency issued a report identifying and addressing the investment gap in renewable and clean energy in the Association of Southeast Asian...more
On April 21, 2023 the European Commission approved a €401 million scheme proposed by the Czech Republic to promote green district heating from renewable energy and waste heat. The scheme represents another environmentally...more
On March 29, the European Financial Reporting Advisory Group (EFRAG) announced that it would start to develop additional guidance for sector-agnostic European Sustainability Reporting Standards (ESRS). In making this...more
On February 23, 2023, the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA) and the Asia Pacific Loan Market Association (APLMA) published updates to the Sustainability-Linked Loan Principles...more
As we have been regularly reporting, the European Union is pursuing major changes in its climate policy. The next significant development is a new legislative policy package, dubbed “Fit for 55.” The planned reforms would...more
The European Commission has launched a public consultation and a call for evidence seeking opinions on the EU’s intermediary climate targets for 2040. This is a scheduled step in the EU’s ambition to reach net-zero emissions...more
5/8/2023
/ Air Pollution ,
Climate Action Plan ,
Climate Change ,
Environmental Policies ,
Environmental Social & Governance (ESG) ,
EU ,
European Commission ,
Financial Transactions ,
Green Deal ,
Greenhouse Gas Emissions ,
Pollution Control ,
Public Consultations ,
Renewable Energy
Cadwalader recently hosted a breakfast discussion with the Loan Market Association (“LMA”) and LSTA with the aim of “Unlocking Sustainability-Linked Loans”. During the session, Cadwalader partner Sukhvir Basran was joined by...more
On March 27, the Association of Southeast Asian Nations (ASEAN) Taxonomy Board (ATB), representing ASEAN finance sectoral bodies, released Version 2 of the ASEAN Taxonomy for Sustainable Finance. This follows Version 1, which...more
On March 23, the British Standards Institution (BSI), the UK National Standards Body, announced the launch of a three-year Nature Investment Standards Programme and related consultation, which aims to stimulate private sector...more
On March 23, 2023, the International Accounting Standards Board (IASB) commenced a new “maintenance” project to “explore whether and how financial statements can better communicate information about climate-related risks.”...more
On March 8, 2023, 25 organizations wrote to the European Commission concerning its treatment of agriculture in the forthcoming Taxonomy Delegated Act, urging them to follow the advice published by their own expert group. The...more
4/10/2023
/ Agribusiness ,
Climate Action Plan ,
Climate Change ,
EU ,
European Commission ,
Farms ,
Greenwashing ,
NGOs ,
Sustainability ,
Sustainable Business Practices ,
Sustainable Finance ,
Taxonomy
On March 13, 2023, the European Supervisory Authorities (ESAs) and the European Central Bank (ECB), published a Joint Statement on climate-related disclosure for structured finance products. In describing the need for such...more
4/3/2023
/ Climate Action Plan ,
Climate Change ,
EU ,
European Central Bank ,
European Supervisory Authorities (ESAs) ,
Financial Services Industry ,
Green Bonds ,
Investment ,
Investors ,
Securitization Standards ,
Structured Financial Products
On March 22, 2023, the European Commission unveiled a proposal, the Green Claims Directive, (Proposal) aimed at combating greenwashing and misleading environmental claims. By virtue of the Proposal, the EC is attempting to...more
3/29/2023
/ Climate Action Plan ,
Climate Change ,
Corporate Governance ,
Corporate Social Responsibility ,
Disclosure Requirements ,
Environmental Claims ,
Environmental Social & Governance (ESG) ,
European Commission ,
Greenwashing ,
Misrepresentation ,
Sustainable Business Practices ,
Unfair or Deceptive Trade Practices