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The Alpha and Omega of Regulation (via Omicron)?

Having said goodbye to another year of headlines dominated by COVID-19, with a Christmas and New Year overshadowed by a mixture of good and bad news about Omicron, it's not yet clear what degree of optimism about the year ahead is justified. At the very least, it is to be hoped that the World Health Organisation will not find it has to exhaust the Greek alphabet in naming any future new variants of concern.

On 17 December 2021, the FCA published two policy statements confirming final rules and guidance to promote improved climate-related financial disclosures. Such measures are aimed at helping to inform market pricing and support business decision-making, with the ultimate goal of assisting consumers in making more informed investment decisions.

On the 3 December 2021, the UK began a consultation on the prohibition of the use of "forest risk commodities" produced on land illegally occupied or used (the "Consultation").

Derivatives & Structured Products Partner, Jonathan Gilmour, and Pensions Partner, Andy Lewis, have jointly contributed to the recently published International Comparative Legal Guide on Environmental, Social & Governance Law 2022. Their chapter outlines the key aspects of ESG law for occupational pension schemes and argue for a wider governance perspective, as well as a pure investment perspective, when approaching ESG.

The Business and Human Rights Resource Centre recently produced a report calling into question the quality and utility of the now ubiquitous social audit reporting (Social Audit Liability: Hard Law Strategies to Redress Weak Social Assurances) (the "Report").

The regulatory technical standards supplementing the EU Sustainable Finance Disclosure Regulation (EU SFDR) have been delayed again by a further six months until 1 January 2023.

Discrimination by association occurs where an employee is discriminated against, not because of a protected characteristic they have, but because of a characteristic of someone they associate with, for example a disabled spouse or child. This case shows how far the protection can potentially extend.

A regular briefing for the alternative asset management industry. 

In our latest Talking. Sustainability. podcast, Tax Associate Tom Margesson and Tax Knowledge Counsel Laura Hodgson discuss the meaning of "substance", why it is important for taxpayers and how you can demonstrate it in practice.

Briefing updated on 16 November 2021

The FCA has issued a discussion paper seeking views on proposed new sustainability disclosure requirements and a sustainability labelling system.

COP26 has so far consistently delivered important "side deals" and the fourth day of the summit was no exception. On Thursday, when the focus was on the energy transition, more than 40 countries agreed to move away from coal-fired energy over the next two decades.

Sunday 31 October 2021 marked the official start of the 26th UN Climate Change Conference of the Parties (COP26). World leaders, climate negotiators, members of the press and media, and representatives of observer organisations descended on Glasgow to join an event which many believe to be the world’s best last chance to get runaway climate change under control.

On Wednesday morning the Chancellor of the UK, Rishi Sunak, reiterated at the start of COP26's Finance Day the UK's plan to become the "first ever net zero aligned financial centre".

Tuesday's big announcement, following swiftly from Monday's commitment to end deforestation by 2030, was that over 100 countries have signed up to dramatically reduce their emissions of methane by supporting the Global Methane Pledge. Though carbon dioxide is often the greenhouse gas that grabs headlines, methane has more than 80 times the warming potential of carbon dioxide in the first 20 years after it is emitted, making its reduction important for short term management of temperature rises. Major sources of methane are the fossil fuel energy sector, agriculture and waste.

The UK's Corporate Justice Coalition ("CJC"), an organisation made up of various UK and international Civil Society Organisations ("CSOs") including Anti-Slavery International, Friends of the Earth and Business Human Rights Resource Centre has recently recommended the implementation of a potentially wide-reaching corporate "failure to prevent" regime targeting negative human rights and environmental impacts. Such a regime would track similar EU proposals relating to the diligence of 'value chains' for ESG failings and malpractice.

With climate change dominating the headlines, at the end of last week, the Government published its response to the March 2021 consultation on mandatory climate-related financial disclosures. The consultation set out proposals for certain publicly quoted companies, large private companies and LLPs to disclose climate-related financial information in line with the recommendations of the Taskforce on Climate-related Financial Disclosures ("TCFD recommendations"). The response summarises feedback the Government has received on its proposals and confirms that the changes will be implemented largely as set out in the consultation.

Early this morning it was announced that more than 100 world leaders will commit to halting and reversing forest loss and land degradation by 2030 at an event due to be convened by the UK at COP26 on Tuesday 2 November 2021.

This briefing was first published in July 2021 and updated in November 2021.