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Tag Archives: ESG

Investing in UK CCUS Projects — Opportunities and Challenges

With the recent UK “Green Day” announcements confirming the government’s support for CCUS, interest in UK CCUS projects is expected to continue to grow. While there are significant opportunities for investors, careful consideration will be needed to navigate a number of industry specific issues to achieve a successful CCUS project. By Beatrice Lo, JP Sweny, Simon … Continue Reading

DP 23/1: FCA Publishes Discussion Paper on Sustainability-Related Governance, Incentives, and Competence

The discussion paper aims to encourage industry-wide dialogue on sustainability related-governance, incentives, and competence. By Anne Mainwaring, Sara Sayma, and Dianne Bell On 10 February 2023, the FCA published DP23/1: Finance for positive sustainable change: governance, incentives and competence in regulated firms. The FCA considers that a firm’s governance, purpose, and culture are central to … Continue Reading

PE on Red Alert for Greenwashing in Light of UK Developments

PE firms face growing regulatory and litigation risks from greenwashing claims as they navigate a fragmented anti-greenwashing landscape. By Tom D. Evans, Nell Perks, Anne Mainwaring, David J. Walker, and Catherine Campbell Amid concerns of exaggerated or misleading sustainability claims, the UK Financial Conduct Authority’s (FCA) recent proposal for new labelling and disclosure rules to … Continue Reading

US Congress Passes Uyghur Forced Labor Prevention Act

The UFLPA aims to clamp down on the import of items produced by alleged forced labor in and relating to the XUAR. By Erin Brown Jones, Les P. Carnegie, Paul A. Davies, Nathan H. Seltzer, James Bee, and Allison Hugi On 16 December 2021, the US Senate unanimously passed the Uyghur Forced Labor Prevention Act … Continue Reading

Tracking Stocks May Serve as a Tool for the ESG Pivot

A relic of the dot-com era may prove useful in attracting investors seeking specific exposures that are ESG-aligned. By Roberto L. Reyes Gaskin and Anna Ngo Shareholders, regulators, and other stakeholders continue to drive the integration of environmental, social, and governance (ESG) considerations into corporate strategy and practice. Recent surveys of institutional investors revealed that … Continue Reading

US DOJ Emphasises Importance of Corporate Culture

UK companies should be aware of the increasing focus on corporate culture by regulators on both sides of the Atlantic. By Nathan H. Seltzer, David Berman, Stuart Alford QC, Christopher M. Ting, and Nell Perks In a recent speech that has garnered significant attention, US Deputy Attorney General Lisa Monaco highlighted several important changes in … Continue Reading

ESG Toolkit Expands for European PE

By Paul A. Davies, Tom Evans, Nicola Higgs, Farah O’Brien, David Walker, Michael Green, Hannah Berdal, Anne Mainwaring, and Catherine Campbell Green shoots emerge as PE firms consider new ways to incorporate ESG into dealmaking. Market sentiment and the increasing importance of environmental, social, and governance (ESG) to firms’ competitiveness across the market, combined with … Continue Reading

FCA Proposes Enhanced Disclosures on Diversity and Inclusion for Listed Companies

Proposals reflect growing investor focus on the ESG performance of listed companies. By Chris Horton, James Inness, Rob Moulton, Anna Ngo, and Johannes Poon The UK Financial Conduct Authority (FCA) has launched a consultation setting out proposed changes to its Listing Rules (LRs) and Disclosure Guidance and Transparency Rules (DTRs). The proposals seek to: (i) … Continue Reading

Greek Sustainability Initiative Promotes Cooperation Between Competitors

The initiative includes a competition law sustainability “sandbox” in which market participants could team up to work on sustainable business projects. By David Little and Pierre Bichet The Greek Competition Authority (HCC) has announced a public consultation on how competition law rules might be adapted to promote more sustainable business practices. The HCC published a … Continue Reading

China’s War on Pollution Hits M&A Deal Environment

By Paul Davies, Richard Butterwick, Terry Charalambous, and Catherine Campbell In recent years, China has taken significant steps in developing its environmental policy. In 2014, China’s Premier Li Keqiang declared a “war on pollution”, which began in earnest in 2017. Since then, regulators have been more proactive in enforcing environmental regulations. Factory closures have become a … Continue Reading

European Court of Justice Delivers Victory for EU Transparency and Accountability

Landmark ruling requires the European Commission to disclose impact assessments used as a basis for its legislative decision-making process. By Antonio Morales and Rosa Espín The Grand Chamber of the Court of Justice of the European Union recently issued a landmark judgment finding that impact assessments should be considered public documents. This decision sets a … Continue Reading

PRI’s Private Equity Terms Guidance Focuses on Environmental, Social, and Governance (ESG) Factors

By Paul Davies, Michael Green and Ei Nge Htut On 13 July 2017, Principles for Responsible Investment (PRI) launched guidance on incorporating environmental, social, and governance (ESG) provisions in private equity fund terms. The publication, Incorporating Responsible Investment Requirements into Private Equity Fund Terms (the Guidance), followed a year-long consultation period with PRI signatories, expert counsel, … Continue Reading

The European Commission Places Environmental, Social and Governance (ESG) Issues Centre Stage

By Paul Davies and Michael Green The European Commission has recently published plans to integrate sustainability considerations into decisions made by investors within the EU. More specifically, the EU is looking to spell out in legislation, that the consideration of ESG issues should be incorporated into the fiduciary duties of EU asset managers. The main … Continue Reading

The OECD’s View on Integration of ESG Issues into Investments – What Next?

By Paul Davies and Michael Green The Organisation for Economic Co-operation and Development (OECD) published a report (OECD Report) on investment governance and integration of environmental, social and governance (ESG) factors on 2 May 2017. The OECD Report develops work already carried out by the organisation on the regulation of investment companies and pension fund … Continue Reading

Sustainable Investment and ESG Compliance ─ Emerging Litigation

By Sophie Lamb and Paul Davies There is an increasing desire amongst PE firms to publicise value creation through the use of bespoke metrics to measure improvements and value derived from (ESG) policies including improved reputational risk management; better and more transparent governance; better health, environmental and safety standards; heightened efficiency; less disruption as a … Continue Reading

Potential Liability for Ignoring Non-Financial Factors in Investment Starts With Climate Change

By Paul Davies and Michael Green Commercial risks to businesses can no longer be neatly divided into financial and non-financial considerations. For example, there is growing recognition, particularly in the pensions sector, that a failure to take account for environmental and social governance (ESG) risks (in particular, climate change risks) can result in adverse financial … Continue Reading

EU Workplace Pensions Now Required to Incorporate ESG Issues

By Paul Davies and Michael Green A new pensions directive was passed by the European Parliament on 24 November securing 512 votes (only 77 votes against and 40 abstentions), requiring EU workplace pension funds to consider environmental, social and governance (ESG) issues. This is considered a ‘landmark’ moment for responsible investment. The new pensions directive … Continue Reading

Private Equity Goes Green

By Paul Davies and Michael Green In December 2015, world leaders met to negotiate the Paris Agreement. Setting aside whether the Paris Agreement goes too far, not far enough or is just right, one cannot dispute that government commitments to limit an increase in the global average temperature to well below two degrees Celsius will … Continue Reading
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