Climate and Sustainability - Q4 2022
IndustriesFinancial servicesRegulatory InsightsFS regulatory affairs newsletter - Q4 2022
Climate and Sustainability - Q4 2022
Following are the key takeaways from Climate related regulatory developments from the past quarter:
- 2023 will see further ESG regulatory requirements either coming into force or being confirmed. These requirements will be across all financial services sectors and cover entity and/or product-level disclosures.
- The FCA will produce its policy statement on Sustainability Disclosure Requirements (SDR) and Investment Labels. The UK Transition Plan Task Force will finalise its guidance on Transition Plans and the UK government is updating the Green Finance Strategy. In addition, The International Sustainability Standards Board (ISSB) will produce finalised sustainability standards in 2023. The UK government has been a firm supporter of the ISSB initiative, and we’d expect to hear more in 2023 on consulting timelines to adopt a UK version of the ISSB standards.
- Firms need to prepare now the systems, controls, governance, risk and data management practices, processes, and policies to ensure they can meet ever increasing ESG scrutiny from regulatory bodies and investors. The fact that identifying, embedding, managing, and reporting climate-related risks brings new challenges for firms compared to managing traditional business risks makes it even more important that firms start preparing.
For a more comprehensive review on this topic, please click on the pdf below:
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Gregory Marchat Partner, Group head of financial services advisory
FS regulatory affairs newsletter - Q4 2022
Following on from our Q3 2022 edition of the FS regulatory affairs newsletter, this edition covers regulatory developments in the fourth quarter of 2022.
Climate and Sustainability - Q3 2022
Firms are expected to enhance their climate risk management frameworks: amending climate risk methodologies, data, scenario analysis capabilities, disclosures, and validation approach. The FCA urges voluntary adoption of industry standards, increasing oversight, and seeking a globally consistent regulatory approach.
Climate and sustainability - Q2 2022
Banks and insurers must ensure their compliance with SS3/19 and continue to develop to ensure their approaches are proportionate to the scale of the risks and the complexity of their operations.