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UK Announces Climate Focused Financial Services Regime

The UK Government presents initiatives designed to green the UK economy and bolster attractiveness as an international financial centre. On 9 November 2020, Rishi Sunak, Chancellor of the Exchequer, announced several...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

EU Regulatory & Antitrust Monitoring on Sustainability Newsletter - September 2020

Welcome to the inaugural issue of the EU Regulatory & Antitrust Monitoring on Sustainability newsletter. The September issue features six key takeaways from the past month to which companies and investors operating in the EU...more

ESG in European Private Equity: The Effects of COVID-19

Increasing interest in ESG issues presents an opportunity for sponsors to re-evaluate their existing ESG strategies. The COVID-19 pandemic continues to present unprecedented challenges for private equity firms and their...more

UK Delays Decision on Adopting EU Sustainable Finance Taxonomy

The delay may complicate the regulatory landscape for sustainable finance as the EU moves toward a standardized classification system.  The UK government (government) has delayed a decision on whether it will adopt the...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

Sustainable Finance and Climate Change Risk in Financial Services - March 2020

Financial services regulators have been particularly vocal in the last 12 months, specifically about the impact on the financial services sector as the world experiences, and attempts to respond to, climate change. Mark...more

FCA Proposes New Rules on Climate-Related Disclosures by Listed Issuers

The FCA is moving towards formalising issuers’ compliance with the TCFD recommendations. Key Points: ..The FCA is proposing that premium listed commercial companies will need to disclose how they have implemented 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

50 Shades of Green Finance: An Untapped Opportunity for Private Equity

Sustainable finance and its surrounding infrastructure offers growing potential for deals and green innovation. The global sustainable finance market has expanded rapidly in recent years, approaching US$320 billion in new...more

ESG Matters Incorporated Into UK Stewardship Code

The revised Code is likely to encourage a more robust and substantive review of ESG issues by institutional investors. Background - The UK Stewardship Code (the Code) was originally published in 2010 following a review...more

China’s War on Pollution Hits M&A Deal Environment

In recent years, China has taken significant steps in developing its environmental policy. In 2014, China’s Premier Li Keqiang declared a “war on pollution”, which began in earnest in 2017....more

China Prioritises Environmental, Social, and Governance Factors in Overseas Investment

The Chinese government has announced a US$4 trillion investment in developing infrastructure globally under the “Belt and Road Initiative” (BRI). Under the BRI the Chinese government will spend US$750 billion on overseas...more

PRI’s Private Equity Terms Guidance Focuses on Environmental, Social, and Governance (ESG) Factors

On 13 July 2017, Principles for Responsible Investment (PRI) launched guidance on incorporating environmental, social, and governance (ESG) provisions in private equity fund terms. The publication, Incorporating Responsible...more

Will TCFD Final Recommendations Change the Landscape of Climate-related Financial Disclosure?

On 29 June 2017, the Task Force on Climate-related Financial Disclosure (TCFD) published its final recommendations. The TCFD set out information that companies should disclose to enable investors, lenders, and insurance...more

New EC Guidelines to Improve Non-Financial Information Reporting

On 26 June 2017, the European Commission (the EC) published non-binding guidelines on the methodology for reporting non-financial information by certain large companies and groups (the Guidelines) as required by Article 2 of...more

The European Commission Places Environmental, Social and Governance (ESG) Issues Centre Stage

The European Commission has recently published plans to integrate sustainability considerations into decisions made by investors within the EU. More specifically, the EU is looking to spell out in legislation, that the...more

Sustainable Loans - Breaking the Mould for Sustainable Investment

Royal Philips, a health technology company, has recently agreed to an innovative revolving credit facility agreement with a margin linked to the company’s year-on-year sustainability performance improvement. The agreement was...more

The OECD’s View on Integration of ESG Issues into Investments – What Next?

The Organisation for Economic Co-operation and Development (OECD) published a report (OECD Report) on investment governance and integration of environmental, social and governance (ESG) factors on 2 May 2017. The OECD Report...more

The European Conflict Minerals Regulation – What are the Key Take Away Points?

The European Conflict Minerals Regulation (the Regulation) was approved by the European Council on 3 April 2017. Publication in the Official Journal of the European Union will be the next step in the process and this could...more

Sustainable Investment and ESG Compliance - Emerging Litigation

There is an increasing desire amongst PE firms to publicise value creation through the use of bespoke metrics to measure improvements and value derived from (ESG) policies including improved reputational risk management;...more

Potential Liability for Ignoring Non-Financial Factors in Investment Starts With Climate Change

Commercial risks to businesses can no longer be neatly divided into financial and non-financial considerations. For example, there is growing recognition, particularly in the pensions sector, that a failure to take account...more

Environmental Transparency Becomes Obligatory in 2017 as EU Directive 2014/95 Comes into Effect

Unprecedented globalisation, coupled with significant concerns around climate change, has taken environmental and social responsibility from a voluntary concept to something more obligatory and enforceable. Consequently,...more

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