Monthly Updates on Environmental, Social, and Governance Regulations in Financial Services Sector
In the world of sustainable finance, the past year has been marked by significant developments and regulations aimed at promoting transparency, combating greenwashing, and fostering a more sustainable economy. Here's a round-up of some of the key events and announcements that have shaped the landscape.
November-December 2024: - The Transition Plan Taskforce published the final version of its Disclosure Framework. - The Financial Conduct Authority (FCA) proposed new guidance on the anti-greenwashing rule. - The Council of the EU published a draft Regulation on the transparency and integrity of ESG rating activities. - HMT launched a consultation on a UK Green Taxonomy. - The FCA's newly established industry-led working group for financial advisers focused on building capability in sustainable finance across the financial advice sector was discussed. - The Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy Regulation was published. - ASIC released a draft regulatory guide on the sustainability reporting regime for consultation.
October-November 2024: - The FCA's multi-firm review of climate reporting in the UK highlighted progress in integrating climate change risks but noted challenges with data availability and reporting complexity. - The Transition Plan Taskforce's mandate was extended to support the Transition Finance Market Review. - The Taskforce on Nature-related Financial Disclosures (TNFD) released its draft guidance on nature transition planning at COP16. - The Transition Finance's Market Review findings were discussed. - The Financial Conduct Authority and the Prudential Regulation Authority set out their proposals to introduce a new regulatory framework on diversity and inclusion in the financial sector. - The ACC's draft guidance "Sustainability collaborations and Australian competition law" was discussed. - The FCA's three new Climate Financial Risk Forum guides were introduced. - The FCA's response to the Transition Finance's Market Review was discussed. - The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2024 was published. - The AFM's expositive study into ESG data risk management was discussed. - The Omnibus I simplification package in the EU limits mandatory reporting under the CSRD to large companies.
September-October 2024: - The publishing of the International Sustainability Standards Board (ISSB) inaugural standards was discussed. - Updated Q&As on SFDR: Key issues for fund managers in the new Global Regulation Tomorrow Plus podcast was discussed. - The development of Australian Sustainability, Reporting Standards was discussed. - A new briefing note on the FRC Plan 2024-2025 - which considers the enforcement aspects of the plan was discussed. - Vanguard was ordered to pay a $12.9 million penalty for greenwashing.
August-September 2024: - The European Commission adopted a recommendation for voluntary sustainability reporting for SMEs in the EU. - The Omnibus I simplification package in the EU limits mandatory reporting under the CSRD to large companies. - The results of the FCA's culture and non-financial misconduct survey were discussed. - The interim report on Climate Resilience Dialogue was discussed. - 'Climate adaptation: What steps should financial institutions be taking now?' was discussed.
July-August 2024: - The SEC's upcoming rulemaking agenda was discussed. - An information note published by NGFS on "Improving Greenhouse Gas Emissions Data" was discussed. - The AMF findings of three supervisory initiatives on sustainable finance were discussed. - The US Securities and Exchange Commission's climate-related disclosure rules were discussed. - The Network for Greening the Financial System (NGFS) in its recent technical document on improving the accuracy of greenhouse gas emissions data considered multiple countries in the past, but specific countries are not listed in the available search results.
June-July 2024: - The European Commission's adoption of the European Sustainability Reporting Standards (ESRS) was discussed. - The European Banking Authority issued a consultation on draft guidelines on the management of ESG risks. - The European Securities and Markets Authority Call for Evidence on the integration of sustainability preferences in the suitability assessment and product governance arrangements was discussed.
May-June 2024: - The International Court of Justice issued a judgment affirming states' obligations to protect the climate from greenhouse gas emissions. - The SEC issued an Order staying its climate reporting rules for public companies. - The ASA issued guidance on sustainability claims in the UK, focusing on clarity, substantiation, and lifecycle analysis. - The PRA published a Consultation Paper on enhancing banks' and insurers' approaches to managing climate-related risks.
April-May 2024: - The California Climate Emissions and Carbon Offset Disclosure Laws were discussed.
March-April 2024: - The House of Commons Treasury Committee report published as part of its current inquiry into Sexism in the City was discussed.
February-March 2024: - The FCA published 'All aboard: strong infrastructure for smooth journeys' speech.
January 2024: - The Australian Treasury's climate-related financial disclosure: draft exposure legislation was discussed. - The Australian Competition and Consumer Commission authorized the Australian Sustainable Finance Institute to collaborate on sustainable finance initiatives in Australia.
July 2023: - The EU Platform on Sustainable Finance published a report on 'Building trust in transition: core elements for assessing corporate transition plans'. - The European Securities and Markets Authority Call for Evidence on the integration of sustainability preferences in the suitability assessment and product governance arrangements was discussed. - The Transition Plan Taskforce's mandate was extended to support the Transition Finance Market Review. - The publishing of the International Sustainability Standards Board (ISSB) inaugural standards was discussed. - ClientEarth's recent attempt to judicially review a decision of the Financial Conduct Authority to approve the prospectus of a UK oil and gas company, Ithaca Energy plc was discussed.
These developments underscore the global commitment to sustainable finance and the ongoing efforts to create a more transparent, accountable, and sustainable financial system. As we move forward, it is expected that these trends will continue, with more regulations, standards, and initiatives being introduced to drive the transition towards a more sustainable economy.
