The European Banking Authority (EBA) has opened a public consultation on draft Guidelines for environmental, social, and governance risks. These guidelines aim to establish robust requirements for financial institutions in the identification, measurement, management, and monitoring of ESG risks. The consultation period extends until April 18, 2024.
ESG has witnessed a meteoric rise in recent years, urging organizations to heighten their commitment to legal and social responsibility. While environmental considerations steal the limelight, the social facet of ESG is gaining prominence, notably in the wake of movements advocating racial and gender equality. Initiatives like Black Lives Matter and #MeToo have amplified awareness, pressuring organizations to play an active role in fostering justice and equality.
The European Council has made a significant stride in the regulation of Environmental, Social, and Governance (ESG) ratings providers, announcing today that it has reached a consensus on a proposal aimed at bringing greater transparency and oversight to this burgeoning sector. The new regulations will place ESG ratings providers under the purview of the European Securities and Markets Authority (ESMA) and implement rules to enhance transparency in their methodologies while mitigating conflicts of interest risks.
In a decisive move to strengthen environmental protection measures, the UK Environment Agency has announced that companies found guilty of polluting the environment can now face unlimited financial penalties. The move, effective immediately, eliminates the previous £250,000 cap on Variable Monetary Penalties (VMPs) and broadens the spectrum of offenses that can be penalized, giving the Environment Agency more robust tools to hold various industries accountable.
In an effort to promote transparency and integrity in environmental marketing, the Australian Competition and Consumer Commission (ACCC) has released a comprehensive guide titled "Making Environmental Claims: A Guide for Business." This guide outlines eight key principles to assist businesses in ensuring that their environmental claims are accurate, truthful, and provide consumers with reliable information.
The three European Supervisory Authorities (ESAs) - the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA) - have unveiled significant amendments to the draft Regulatory Technical Standards (RTS) under the Sustainable Finance Disclosure Regulation (SFDR).
The Financial Conduct Authority (FCA) has unveiled a comprehensive set of measures to fortify sustainability disclosure and introduce an innovative investment labelling regime. This strategic move comes after extensive engagement with a diverse array of stakeholders, encompassing industry experts, regulatory bodies, and consumer advocacy groups.