In a recent Legal Update[1], we discussed the intersection between Tax and ESG and the challenges companies will face responding to external pressures for greater transparency into a company’s global tax position. We predicted that once the SEC reporting season began this month, the press would focus on the effective tax rates of
On 23 February 2022, the European Commission published its much-anticipated draft corporate sustainability and due diligence directive (the Draft Directive), after a number of delays (see our Previous Blog). The Draft Directive sets out a proposed EU standard for human rights and environmental due diligence (HREDD). This includes an obligation for companies to take
On 11 February, the European Securities and Markets Authority (“ESMA”) published its Sustainable Finance Roadmap for 2022-2024 (the “Roadmap”).
The Roadmap builds on ESMA’s 2020 Strategy for Sustainable Finance and will be of interest to those in the EU and beyond looking to understand the focus and ambition of the EU’s securities market regulator in
Disclosure of information on the ESG-related risks facing financial institutions is widely recognised as a vital tool to promoting market discipline. It enables stakeholders to assess the risks presented to financial institutions by issues such as climate change, social and governance risks, whilst also allowing stakeholders to review the sustainable finance strategies of financial institutions.
Mojodomo, a customer and employee rewards provider, has published a report on the role of ESG for employees in Asia. The report (which can be downloaded here) shares the findings of a survey they conducted of over 1,000 employees, 315 HR professionals and 30 HR executives. Among its findings is that:
This Lexis practice note discusses market trends in 2021 relating to disclosures of climate change risks and mitigation by public companies, which are intertwined with ESG issues. It also provides illustrative disclosures by public companies regarding how climate change has affected or may affect their operations, both directly (e.g., through disruption of supply chains) and
The fashion industry often faces scrutiny from stakeholders to improve due diligence in supply chains. A landmark proposed bill in New York, drafted last October and presented for the first time to a legislative committee on January 5 2022, is seeking to drive accountability and transparency in the supply chains of fashion companies. The Fashion
In December 2021, the Hong Kong Monetary Authority (HKMA) issued the results of its pilot climate risk stress test (CRST). The CRST assesses the potential impact of climate change on the Hong Kong banking sector. It marks the latest such publication by a regulator on the topic, with French regulator, Autorité de contrôle prudentiel et
The sustainable investing market is witnessing remarkable growth: since 2018, annual cash flows into sustainable funds have increased tenfold. Now, more than ever, investors and asset managers alike seek sustainable products and strategies offering robust financial returns. The field, however, has been haunted by greenwashing claims and a lack of consistency in identifying what,
The sustainable investing market is witnessing remarkable growth: since 2018, annual cash flows into sustainable funds have increased tenfold. Now, more than ever, investors and asset managers alike seek sustainable products and strategies offering robust financial returns. The field, however, has been haunted by greenwashing claims and a lack of consistency in identifying what,