Insights

A sustainable fund by any other name

Cristian Echavarria, Principal, Holtara The story of investment in the twenty-first century so far has been the story of sustainable investment. The Global Sustainable Investment Alliance estimates that at the beginning of 2020, sustainable investment worldwide was worth $35.3 trillion. And, despite recent years having seen ESG investing dragged into the political debate, this trend is unlikely to disappear anytime soon.

How US credit managers can approach EU SLL issuance

Puk van Rees, Manager and Stephen Loce, Senior Analyst Sustainability-linked loans (“SLLs”) have seen remarkable growth since 2017, reaching $877 billion globally by 2022. While Europe led initially, other regions are catching up, albeit with disparities. The US market experienced a decline due to concerns like greenwashing and regulatory uncertainties. With rising interest rates and regulatory focus on ESG, lenders must consider SLLs for their financial and reputational benefits. Now is the time for US fund managers to integrate SLLs into their sustainability strategies, particularly for European fundraising.

What does the anti-greenwashing rule mean for UK financial services firms?

Finn Arbuckle, Senior Commercial Analyst, and Madeleine Kelly, Consultant On Tuesday, October 25 2022, the Financial Conduct Authority (“FCA”) published its Consultation Paper (“CP”) for Sustainability Disclosure Requirements (“SDR”) and Investment Labels for UK-based financial market participants. After a year of being under consultation, the final version of the Policy Statement (“PS”) was released on November 28 2023. The SDR is designed to combat greenwashing, increase transparency, create a fair market, and protect retail and institutional investor interests regarding sustainability claims made by UK financial firms.

Watch the CSRD webinar anytime, on-demand

The Corporate Sustainability Reporting Directive (“CSRD”) is a European Union regulation aimed at enhancing sustainability reporting by companies.

The SEC Climate-Related Disclosure Rules

Nicole Balarezo, Associate and Hunter Gowans, Senior Consultant After nearly two years of anticipation, the Securities and Exchange Commission (“SEC”) voted in support of the long- awaited Climate-Related Disclosure Rules on Wednesday, March 6 2024, by a margin of 3-2 votes. In fulfilling its role of protecting investors, the Commission approved a rule designed to produce reliable and comparable climate-related information material for investors’ decision-making and voting processes. The final version of the rule is narrower in scope than the original draft and integrates feedback gathered from over 24,000 comments, balancing the market´s demand for uniform climate-related financial information and widely voiced concerns about compliance costs.

CSRD double materiality: Your step-by-step guide

Gert-Jan van de Poll, Senior Associate The Corporate Sustainability Reporting Directive (“CSRD”) requires companies to report on relevant environmental, social, and governance (“ESG”) matters in their own operations, as well as in their upstream and downstream value chain. To determine what is relevant, a company must go through a materiality assessment process that applies the principles of double materiality. This is necessary to determine, in CSRD terminology, the specific reporting standards, disclosures, and data points that must be included in a company's sustainability reporting, as well as those that may justifiably be omitted.

What is the G in ESG? Unveiling the critical role of governance

George Lampridis, Senior Associate While environmental and social considerations often take the spotlight, governance remains the unsung hero of the ESG revolution. It serves as the foundation for the delivery and monitoring of ESG, akin to a ‘sandwich analogy for ESG’. This article delves into the multifaceted role of governance in ESG, highlighting compliance and the financial value of ESG-driven investments. Navigating challenges to establish a future-proof governance framework is crucial for sustainability in today's rapidly evolving landscape.

UK Real Estate Fund Managers: Embrace SDR!

Melville Rodrigues, Head of Real Assets Advisory at Apex Group, welcomes the UK’s Sustainability Disclosure Requirements and calls for UK-EU coherence on fund regulation.

Understanding California’s climate disclosure regulation