Key regulations: Sustainability
Recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD)
Scope: Global | Regulator: TNFD | Industry: Cross | Theme: Sustainability - Corporate Disclosure | Publication date: 01/09/2023
The recommendations of the Task Force on Nature-related Financial Disclosures (TNFD) provide a framework for companies and financial institutions to identify, manage and disclose their nature-related risks, impacts and dependencies. These recommendations are designed to align with international sustainability standards and respond to growing investor demand for information on environmental issues. The framework is based on four pillars: governance, strategy, risk management, and metrics and targets, and seeks to integrate nature considerations into financial and business decision-making.
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Consultation Paper on disclosure of climate-related financial risks
Scope: Global | Regulator: BCBS | Industry: Finance | Theme: Sustainability - Risk Management - Climate | Release Date: 29/11/2023
Consultation Paper on the disclosure of qualitative and quantitative information related to climate risks, which is the first proposal of the Pillar 3 Climate Committee. On the qualitative side, this would require the presentation of information on governance, strategy, risk management and concentration risk management related to climate risks. In addition, the BCBS proposes the disclosure of a set of quantitative templates with relevant information on banks' exposure to transition and physical risks.
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Principles for effective management and monitoring of climate-related risks
Scope: Global | Regulator: BCBS | Industry: Cross | Theme: Sustainability - Risk management - climate: Publication date: 01/06/2022
Principles that seek to promote a rules-based approach to improve risk management and supervisory practices related to financial risks arising from climate change. This approach builds on the revision of the existing Basel Framework, in particular the Basel Core Principles (BCPs) and the Supervisory Review Process (SRP). It also draws on supervisory initiatives undertaken by various prudential authorities and international bodies, particularly the supervisory expectations of the ECB. Click here to access the standard.
GRI Standards
Scope: Global | Regulator: GRI | Industry: Cross-industry | Subject: Sustainability - Corporate Disclosure | Publication date: 01/03/2022
A set of international standards used to measure and report an organization's sustainability performance, in order to assess and compare its environmental impact with other companies and make informed decisions towards corporate sustainability.
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Recommendations on practices, policies, procedures and disclosures related to sustainability in asset management
Scope: Global | Regulator: IOSCO | Industry: Finance - Asset Management | Theme: Sustainability - ESG Risk Management | Publication date: 01/11/2021
The Final Report, prepared by IOSCO's Sustainable Finance Task Force, follows the Consultation Report entitled "Recommendations on Practices, Policies, Procedures and Disclosures Related to Sustainability in Asset Management" published on 30 June 2021. This report aims to improve sustainability-related practices, policies, procedures and disclosures in the asset management industry through five recommendations for securities regulators and policy makers. These recommendations are designed to provide a list of possible areas for consideration as regulators and policy makers develop sustainability-related rules and regulations in accordance with their national mandates and regulatory frameworks.
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Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
Scope: Global | Regulator: TCFD | Industry: Cross-industry | Theme: Sustainability - Corporate Disclosure | Date of publication: 15/06/2017
The recommendations of the Task Force on Climate-related Financial Disclosures focus on four key areas: governance, strategy, risk management, and metrics and targets. It is suggested that organizations disclose how their governance addresses climate-related risks and opportunities, describe the current and potential impacts of climate on their business and strategies, detail the processes for identifying and managing these risks, and disclose the metrics and targets used to assess and manage climate risks and opportunities. These recommendations aim to provide decision-useful information and encourage transparency in climate-related financial disclosures.
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Pilar 3 ESG
Scope: Global | Regulator: EC | Industry: Finance - Cross | Theme: Sustainability - Disclosure Pillar 3| Publication date: 19/12/2022
Implementing Technical Standards providing instructions and reporting structure for the disclosure of relevant qualitative information on ESG risks, and quantitative information on climate change related risks, including transitional and physical risks and mitigation measures.
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Corporate Sustainability Due Diligence Directive (CS3D)
Scope: EU | Regulator: European Parliament and Council | Industry: Cross | Theme: Sustainability - Due Diligence | Date of publication: 13/06/2024
This Directive includes requirements for companies to comply with the duty of due diligence. The objective is to ensure that companies operating in the internal market contribute to the transition to sustainable economies and societies by identifying, preventing and mitigating, ceasing and minimizing potential or actual adverse human rights and environmental impacts related to their own operations, subsidiaries and value chains.
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European Green Bond Regulation
Scope: EU | Regulator: European Parliament and Council | Industry: Finance - Cross | Theme: Sustainability - Risk Management - Environment | Publication date: 30/11/2023
This Regulation establishes uniform requirements for bond issuers wishing to use the designation "European Green Bond" or "EuGB" for their bonds made available to investors in the Union, a system for the registration and supervision of external verifiers of European Green Bonds, and optional disclosure templates for bonds marketed as environmentally sustainable and for sustainability-related bonds in the Union.
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European Sustainability Reporting Standards (ESRS)
Scope: EU | Regulator: EC | Industry: Cross | Theme: Sustainability - Corporate Disclosure | Publication date: 31/07/2023
The ESRS developed by EFRAG set out the requirements for companies to report on sustainability-related impacts, risks and opportunities in the framework of the Corporate Sustainability Reporting Directive (CSRD). There are twelve standards, consisting of two cross-cutting standards (ESRS 1 on general requirements and ESRS 2 on general disclosures) and thematic standards covering environmental, social and governance issues.
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Corporate Sustainability Reporting Directive (CSRD)
Scope: EU | Regulator: European Parliament and Council | Industry: Cross | Theme: Sustainability - Corporate Disclosure | Date of publication: 14/12/2022
This Directive amends the NFRD, the Regulation amending the specific requirements for the statutory audit of public interest entities, the Directive on statutory audit of annual accounts and consolidated accounts to introduce more detailed reporting requirements and ensures that large companies and listed SMEs report on sustainability issues such as environmental, social, human rights and governance factors.
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European Climate Law
Scope: EU | Regulator: European Parliament and Council | Industry: Cross | Theme: Sustainability - Risk Management - Climate | Date of publication: 09/07/2021
Regulation that sets a legally binding target of zero net greenhouse gas emissions by 2050 as well as a more ambitious EU-specific target to reduce net greenhouse gas emissions by at least 55% below 1990 levels by 2030. It also creates a system to monitor progress and take further action if necessary and provides predictability for investors and other economic actors.
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Taxonomy Regulation
Scope: EU | Regulator: European Parliament and Council | Industry: Cross | Theme: Sustainability - ESG Taxonomy | Publication date: 22/06/2020
This Regulation sets out the criteria for determining whether an economic activity is considered environmentally sustainable for the purpose of determining the degree of environmental sustainability of an investment. To this end, it establishes an exhaustive list of environmental objectives, as well as a mandate to the European Commission (EC) to develop uniform criteria for determining whether economic activities contribute substantially to these objectives.
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Sustainable Finance Disclosure Regulation (SFDR)
Scope: EU | Regulator: European Parliament and Council | Industry: Finance - Asset Management | Theme: Sustainability - Corporate Disclosure | Date of publication: 27/11/2019
Regulation establishing obligations for financial institutions (fund managers, advisors and financial products) to disclose information on how they integrate environmental, social and governance (ESG) factors into their investment and decision-making processes. It aims to increase transparency for investors on the sustainability of investments, differentiating between products with environmental or social characteristics and those that promote sustainable investments.
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