Governance, risk management and reporting
Businesses face an ever-increasing plethora of climate-change and sustainability global rules, expectations and initiatives.
It is therefore crucial to have robust governance and risk management arrangements to deal with these appropriately. Boards need to have a clear understanding and appreciation of sustainable finance risks to their organisation and its customers, with clear roles, responsibilities and oversight arrangements in place.
Risk management processes also need to be properly calibrated in respect of sustainable finance and climate-change risks, with robust risk governance, reporting and escalation practices.
Furthermore, there are also a growing variety of reporting frameworks businesses may need to comply with, including for example the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD. Hundreds of businesses spanning industries globally have already pledged their support. Consideration must therefore be given to business planning going forward, and to the legal and compliance implications of doing so, as well as the risks of failing to do so.
Companies must also be alive to the fact that there is an increasing likelihood of mandatory disclosure frameworks. Most recently, the Securities and Exchange Commission (SEC) announced the opening of a comment period regarding climate change disclosures. The submissions are to be used in developing future guidance and proposals on ESG issues. In a similar vein, the Financial Conduct Authority (FCA) has published final rules and guidance promoting better climate-related financial disclosures, with TCFD-aligned disclosures being applied on a comply or explain basis to UK premium listed commercial companies. The UK government has also announced its intention to make TCFD-aligned disclosures mandatory across the economy.
Our global multi-disciplinary team can support across these important areas – acting as your business advisor for legal, regulatory, risk and compliance matters. We can also help you design and deliver regulatory change programmes – including assessing your current state, conducting gap analyses, and implementing programmes to deliver improvements and enhancements required.
Advice on the United Nations Principles for Responsible Banking
Financial Services Regulatory Developments in ESG
ESG is high on the regulatory agenda. Businesses, governments, regulators, financial services firms and individuals all have a part to play in tackling climate change and this view is increasingly shared across society.
A Boost to Integrity in the Voluntary Carbon Market
The Integrity Council for the Voluntary Carbon Market launches the Core Carbon Principles for the Voluntary Carbon Market
EU scales up green subsidies: How to benefit from support for clean investments
On March 9, 2023, the European Commission (EC) adopted changes to its State aid framework to support its “Green Deal Industrial Plan for the Net-Zero Age” (the Net Zero Plan) presented in February 2023. The Net Zero Plan is part of the European Green Deal, which aims to make Europe the world’s first climate-neutral continent by 2050.
Singapore office advises on PLN’s first green loan
Global law firm Norton Rose Fulbright has advised a consortium of lenders on a US$750 million loan for Perusahaan Listrik Negara (PLN), which is also PLN’s first USD Syndicated Green Loan.
Firm named Environment and Climate Firm of the Year at Who’s Who Legal Awards
The annual awards recognise the world’s leading law firms and lawyers across 35 practice areas and industries according to Who’s Who Legal’s independent research.
Banco Santander, S.A. advised on US$22.3m ECA-backed financing
Norton Rose Fulbright represented Banco Santander, S.A. in the closing of a US$22.3 million ECA-backed loan to Brazilian utility company Eletronuclear.
InterContinental Energy advised related to bp’s entry into world’s largest renewables, green hydrogen project
Global law firm Norton Rose Fulbright advised the leading green fuel developer InterContinental Energy on bp’s entry into the Asian Renewable Energy Hub (also known as the AREH project). The Asian Renewable Energy Hub is the world’s largest renewables and green hydrogen energy hub with 26GW of renewable energy planned for the Pilbara region of Western Australia
ENEOS advised on B2B solar generation Joint Venture with TotalEnergies
Global law firm Norton Rose Fulbright has advised Japan-based ENEOS Corporation on its Joint Venture with TotalEnergies to develop onsite B2B solar distributed generation across Asia.
Energy Transition Services
We are committed to helping our clients evolve and thrive as the world changes and would be delighted to discuss how we can help you.