August 2023 Newsletter

4 Sept

We hope you’ve had a great summer. Here are some of the top ESG stories from August.

AIMA Putting ESG into Practice 2023

Join us at AIMA’s Putting ESG into Practice 2023 event in London on Thursday 9th September. Expect updates on UK and EU regulation from the FCA and ESMA, as well as sessions on DEI, Net Zero, ESG for private markets, ESG data and reporting, and TNFD. Swing by the Danesmead ESG stand for a chat and pick up some Danesmead ESG x Tony’s Chocolonely chocolate! LINK

PRI 2023 reporting window extended

The PRI reporting window has been extended by a week; the new deadline is 13 September 2023. Get in touch if you have any final questions on your PRI reporting or if you are struggling with the portal or submission of information. LINK

TNFD recommendations launch

The Taskforce on Nature-related Financial Disclosures (TNFD) is launching its final recommendations and guidance at Climate Week NYC on 19th September. Now in its fourth iteration following 2 years of design and consultation, the final version of the TNFD beta framework provides a consistent risk management and disclosure approach for identifying, assessing, and managing nature-related issues. Following the launch, TNFD will host a webinar, covering the LEAP Approach (which underlies the framework), TNFD metrics, user guidance, alignment with TCFD, and other recommendations. LINK

UKSIF warns UK PM over climate wavering

UKSIF (UK Sustainable Investment and Finance Association) – the industry group for UK investment managers, banks, asset owners and other financial institutions representing £1.5 trillion in AuM – has written to the UK Prime Minister Rishi Sunak warning him of the potential impact on the sector of his recent announcements on energy and climate change. In a letter signed by 36 financial institutions, the group highlights the government’s recent plan to issue new oil and gas licences in the North Sea, water down energy efficiency policy, and extend the phase-out of petrol cars and gas boilers as evidence of the government’s failing commitment to its net zero goal, which it says, is undermining the UK’s status as a leader in sustainable finance. The letter urges the PM to provide the clarity, in the form of long-term policy certainty, that the financial sector is urgently calling for to drive sustainable investment and grow the economy. LINK

UK government publishes initial guidance on UK Sustainability Disclosure Standards

The UK’s Department for Business and Trade (DBT) has published its initial outline for the UK Sustainability Disclosure Standards (SDS). The new SDS framework will be based on the ISSB sustainability standards and will provide the “basis of any future requirements in UK legislation or regulation for companies to report on risks and opportunities relating to sustainability matters, including risks and opportunities arising from climate change”. SDS is expected to be finalised by June 2024. The UK standards will form part of the UK Sustainability Disclosure Requirements (SDR) regime and wider Green Finance Strategy which will set requirements for UK companies to disclose a climate transition plan, amongst other plans. The UK’s Financial Conduct Authority (FCA) has also indicated it will update its guidance for companies in relation to TCFD and transition planning to align with UK-endorsed ISSB standards. LINK

OECD changes to Guidelines for Multinational Enterprises on Responsible Business Conduct

The OECD has revised its Guidelines for Multinational Enterprises on Responsible Business Conduct, a set of recommendations aimed at companies seeking to encourage positive contributions to economic, environmental, and social progress. Key areas that have been updated include: climate change (including adopting decarbonisation targets and prioritising emissions reductions over offsetting), biodiversity, supply chain due diligence, and Just Transition. Expectations on companies have tightened and there is an increased focus on due diligence including engagement, remedy and disclosure under the revised guidelines. The National Contact Point (NCP) (aka grievance mechanism) has also been strengthened. LINK

Get in touch if you’d like to know more about any of these topics.