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.
London office advises Citi on structuring first-of-its-kind B2B payment solution for renewables marketplace
Global law firm Norton Rose Fulbright has advised global financial services firm Citi on structuring, in collaboration with Hokodo, a new B2B payment solution for renewable energy e-commerce marketplace Covento, which has been created by Vestas.
Paris team advises lenders in an innovative borrowing base facility to support Gunvor’s carbon trading activities
Global law firm Norton Rose Fulbright advised MUFG bank (MUFG) and Natixis Corporate and Investment Bank (CIB) and two other international lenders, in the signing of an uncommitted borrowing base facility of up to €240 million to support trading activities on the European Union Emissions Trading System (EU ETS).
Warsaw team advises PGE Polska Grupa Energetyczna on PLN 2,3bn sustainability-linked financing
Global law firm Norton Rose Fulbright advised PGE Polska Grupa Energetyczna, on PLN 2,3bn (€490m) ESG financing.
Cross-border team advises Infinity Power on Lekela Power acquisition
Global law firm Norton Rose Fulbright advised Infinity Power in connection with its acquisition of the entire shareholding of Lekela Power (Lekela), an Africa based wind power platform, from a consortium led by Actis and Mainstream funds.
Warsaw team advises fund managed by Sienna Private Credit on a holdco financing
Global law firm Norton Rose Fulbright advised Sienna Private Credit on a holdco financing provided to a Polish borrower in relation to construction of a 35 MW wind farm in Poland. The construction of this wind farm is also financed by PKO Bank Polski as senior lender.
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.