Financial Services Regulatory Developments in ESG
Global | Publication | May 2023
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. In terms of financial markets, investors are increasingly seeking sustainable financial products and ESG investing, traditional investing combined with sustainable or otherwise philanthropic aims, has seen huge growth in recent years.
Regulated firms are also seeking to improve their own ESG performance more generally to build stronger relationships with their stakeholders, including those who use their services. Whilst the growing emphasis on ESG presents opportunities for financial services providers, it also brings with it a number of risks, which need to be properly managed with a view to avoiding future regulatory investigations and enforcement.
As our clients look to transition towards a more sustainable and profitable future, they require strategic legal advice across a wide range of regulatory issues including in relation to sustainable finance, disclosures, greenwashing and safeguarding against contentious risks.
Developed by our global financial services regulatory lawyers and integrated risk advisory group, our Financial Services Regulatory Developments in ESG Hub provides resources and insights to help clients stay informed of key regulatory developments in the sector.
Horizon scanning in 2023 section – ESG developments in financial services. This timeline sets out the key ESG milestones in the UK and EU from a financial services regulatory perspective so that businesses may keep track of developments in 2023. The timeline will be updated every quarter, the last update was made on 30 April 2023.
Regulation Tomorrow blog
Regulation Tomorrow podcast
Exploring the latest developments in the world of financial services risk and regulation
Financial services and regulation
Helping clients to navigate the evolving and increasingly complex regulatory environment.
EBA consults on draft guidelines on the benchmarking of diversity practices including policies and gender pay gap under the CRD IV and IFD
On 24 April 2023, the European Banking Authority (EBA) published a consultation paper on draft guidelines on the benchmarking of diversity practices including diversity policies and gender pay gap under the Capital Requirements Directive IV (CRD IV) and the Investment Firms Directive (IFD).
ESAs consult on proposed amendments to extend and simplify sustainability disclosures under SFDR
On 12 April 2023, the three European Supervisory Authorities (the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA)) published a joint Consultation Paper setting out proposed amendments to the disclosure framework under Regulation (EU) 2019/2088 (the Sustainable Finance Disclosure Regulation or SFDR).
FCA announces launch of first ever GFIN Greenwashing TechSprint
On 11 April 2023, the FCA announced that it would be leading the Global Financial Innovation Network (GFIN)’s first ever virtual Greenwashing TechSprint.
Commission call for feedback on a new set of EU Taxonomy criteria
On 5 April 2023, the European Commission issued a call for feedback on a proposed Delegated Regulation containing a new set of EU Taxonomy criteria for economic activities making a substantial contribution to one or more of the following environmental objectives.
AFM exploratory study on CSRD
On 30 March 2023, the Dutch Authority for Financial Markets (Autoriteit Financiële Markten, the AFM) published the results of an exploratory study on the Corporate Sustainability Reporting Directive (CSRD).
Sustainable Finance Disclosure Regulation (SFDR) Project Manager
Webinars and Podcasts
Regulation Tomorrow Plus: ESG insight series
In the first of our financial services ESG insight series, Haney Saadah discusses what he is seeing in the market and some of the key ESG pressure points from a regulatory perspective.
Managing the greenwashing risk
In this session, we look at how regulators are dealing with greenwashing and how to reduce the risk of a greenwashing claim.
Regulation Tomorrow Plus - What to expect in 2023?
In this episode, our London Financial Services & Regulation partners reflect on some of the key UK regulatory themes from the past year and what we expect to come down the track in 2023 including Consumer Duty and ESG.
ESG: Key regulatory risks in the UK and US and practical steps to manage them
In our next episode of RT Plus, Katie Stephen, Co-Head of our Contentious Financial Services Group in London, and Celia Cohen, Co-Head of Financial Institutions in the United States, discuss the key regulatory risks for financial services firms in their respective jurisdictions around Environmental, Social and Governance issues. Katie and Celia also give us their practical tips on what firms can be doing now to help manage those risks.