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UK Updates Its Green Finance Strategy and Launches ESG Ratings Regulation Consultation

On March 30, 2023, the UK government announced the publication of its 2023 green finance strategy, updating its earlier 2019 strategy, which is intended to mitigate climate-related risk and damage while increasing the amount...more

Nuclear Power Classified as Environmentally Sustainable in UK's Green Taxonomy

On March 15, 2023, the UK’s Chancellor of the Exchequer, Jeremy Hunt, announced that nuclear power will be classified as “environmentally sustainable” in UK’s green taxonomy, “giving it access to the same investment...more

Malaysian Stock Exchange to Launch ESG-Reporting Platform

On March 22, 2023, Malaysian stock exchange Bursa Malaysia and the London Stock Exchange Group announced the development of a centralized ESG-reporting platform (Platform), due to launch in April 2023. The Platform has been...more

ShareAction Claims Asset Managers Lagging on Climate and Biodiversity

In a recent report, the UK-based NGO ShareAction claimed that “[t]he asset management industry needs to change urgently if it is to demonstrate proactive stewardship that safeguards against key social and environmental risks...more

UK Pensions Regulator Launches Regulatory Initiative to Monitor Climate and ESG Non-compliance by Trustees

On February 22, 2023, the UK’s Pensions Regulator (TPR) announced the launch of a new initiative aimed at tightening regulation around ESG data published by trustees, as part of a wider campaign to assess whether trustees are...more

PRA to Consider Impact of Climate Change on Financial Stability

Under a proposed amendment to the UK’s Financial Services and Markets Bill, the Prudential Regulation Authority (PRA) could be empowered to review appropriate risk weighting and capital requirements associated with a...more

EBA Seeks Input from Credit Institutions on Green Loans and Mortgages

On February 13, 2023, as part of the European Commission’s Strategy for financing transition to a sustainable economy, the European Banking Authority (EBA) launched an industry survey seeking input on green loans and...more

European Commission Approves €515 Million in State Aid from Spain and Germany to Build Hydrogen-Powered Steel Plants

On February 17, 2023, the European Commission granted approval for the Spanish and German governments to subsidize the construction of two renewable hydrogen-powered steel production facilities for Europe’s largest...more

French Financial Regulator Calls for Review of SFDR Minimum Standards

On February 13, the Autorité des marchés financiers (AMF), the French financial regulator, proposed the introduction of legislation to establish “minimum environmental requirements” that must be met in order for financial...more

FCA Publishes Discussion Paper on Sustainability-Related Governance

On February 10, the UK’s Financial Conduct Authority (FCA) published a discussion paper titled “Finance for positive sustainable change: governance, incentives and competence in regulated firms.” The paper considers whether...more

British Government to Establish Department for Energy Security and Net Zero

On February 7, the British government announced the creation of four new departments, including the Department for Energy Security and Net Zero. The new department has been tasked with “securing [Britain’s] long-term energy...more

ESMA Announces Review Covering the Marketing of Financial Products across EU including Greenwashing

On January 16, 2023, the European Securities and Markets Authority (ESMA) announced the launch of a common supervisory action (CSA) in partnership with EU Member State national competent authorities (NCAs). The CSA will cover...more

Sustainable Markets Initiative Task Force Launches Transition Categorization Framework

On January 17, the Sustainable Markets Initiative (SMI) announced that its Asset Manager and Asset Owner Task Force (AMAO Task Force) has released a Transition Categorization Framework. The AMAO Task Force is comprised of 34...more

Brazil Carries Out First Anti-Deforestation Raids

Recently, agents from Brazil’s environmental protection agency, the Institute of Environment and Renewable Natural Resources (Ibama), carried out the first significant environmental enforcement activity under the new...more

BEIS Commissioned Review of UK Delivery of Net Zero

On January 13, an independent report was published into the UK government’s approach to delivering on its net zero obligations. The review, commissioned by the Department for Business, Energy & Industrial Strategy (BEIS), was...more

South America’s Anticipated Offshore Wind Boom

Foreign energy companies are taking initial steps to develop a large number of offshore wind farms along the coasts of Brazil and Colombia. As governments seek to reduce their carbon emissions to meet climate goals and...more

Recent Climate-Related Developments in Asia

Taiwan’s central bank announced it will begin incorporating climate change related risks into its forecasts and modelling for inflation and economic growth. The central bank will also amend its monetary policy to better...more

COP15: The Global Biodiversity Framework

The United Nations Biodiversity Conference (COP15) ended in Montreal, Canada, on December 19, 2022 with a landmark agreement to protect at least 30% the planet’s lands, inland waters, coastal areas and oceans by 2030 (known...more

Greenwashing: Research Suggests European Banks “not doing enough to address ... climate change and biodiversity loss”

The UK-based responsible investing non-profit ShareAction announced the publication of a report into the biodiversity and climate strategies of the 25 largest European banks, measured by total assets. The report concludes...more

Disclosure: ‘Green Hushing’ Climate Targets

South Pole, a Swiss carbon finance consultancy, has published a report which suggests that one in four companies around the globe have decided not to publicize details of their climate targets. This development has been...more

ESG Ratings: A Call for Greater Transparency and Precision

In early 2022, the ESG ratings industry attracted attention when electric vehicle manufacturer Tesla Inc. was dropped from the S&P 500 ESG Index.  Explaining its decision, S&P cited perceived deficiencies in many ESG areas,...more

ESG Enforcement Watch: SEC Files Fraud Complaint against Brazilian Miner, Vale, over False Safety Claims prior to Environmental...

Summary - In an important development, on April 28, 2022, the Securities and Exchange Commission (SEC) commenced an action in the United States District Court for the Eastern District of New York in which it asserted that...more

Investors and Regulators Turning up the Heat on Climate-Change Disclosures: Attempting to Make Sense of the State of Play in the...

As investors’ calls for greater climate-related corporate accountability grow louder, the “E” in ESG—environmental, social and governance—looms larger than ever, particularly from the perspective of directors facing oversight...more

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