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Sustainability-Linked Finance Takes Off in 2020

A series of recent developments has driven a rapid increase in sustainability-linked loan and bond issuances in a variety of jurisdictions and industries. Background: Sustainability-Linked vs. Activity-Based - The...more

Federal Reserve Recognizes Significance of Climate Risks on Financial Stability

The US prudential regulator is paying attention to climate risks, and will likely act to mitigate those risks if they threaten financial stability. In its November 2020 Financial Stability Report (the Report), the Board of...more

US Department of Labor Puts ESG Investing on Ice

In its finalized rule amending ERISA, the DOL makes financial factors paramount in a fiduciary’s responsibility to investors. On October 30, 2020, the US Department of Labor (DOL) published Financial Factors in Selecting...more

The ABCs of ESG: How Are Companies Going Beyond the Basics? [Video]

Environmental, social, and governance (ESG) issues continue to rise in importance for global companies, a trend driven by investors, employees, customers, and other stakeholders. How are companies approaching ESG risks and...more

CFTC Report: Climate Change Threatens Stability of US Financial System

A watershed CFTC report highlights the dangers of climate change to the US economy, and provides a broad risk-mitigation roadmap. On September 9, 2020, the US Commodity Futures Trading Commission’s (CFTC’s) Climate-Related...more

Green Bond Second Party Opinions: Legal and Practice Considerations

Annual issuance of “green bonds,” financing instruments connected to business activities with positive environmental effects, have gone from non-existent in 2007 to greater than $250 billion (equivalent) in 2019, using the...more

Directors, Take Note: ESG Can Drive Value in 2020

The message that environmental, social, and governance issues can drive stockholder value resonates ever more clearly today. In 2017, Latham lawyers discussed how directors can use environmental, social, and governance...more

Sustainability-linked bonds complement and bolster the sustainable finance market

In September 2019, Italian power generation company Enel opened up the market for a new sustainable finance product — bonds with interest rate adjustments related to sustainability performance targets. This new product has...more

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