Regulatory and Standards Tracker

ESG ratings regulation

On 19th November 2024, the EU Council adopted the proposed ESG Ratings Regulation. The regulation will be published in the EU’s Official Journal and enter into force 20 days later, and will start applying 18 months after its entry into force.

Further information about the regulation can be found in previous publications of Horizons.

CSRD: final FAQs published in Official Journal

On 13 November 2024, the European Commission published the final version of a set of Frequently Asked Questions (FAQs) relating to the requirements of the Corporate Sustainability Reporting Directive (CSRD). The FAQs also provide clarification in respect of certain provisions of the Sustainable Finance Disclosure Regulation (SFDR).

See previous publications of Horizons for further information.

EU Taxonomy: FAQs

On 29 November 2024, the Commission published a set of frequently asked questions (FAQs) to support the implementation of the EU Taxonomy focussing on the technical screening criteria for new activities included in the Taxonomy Climate and Environmental Delegated Acts. The FAQs form part of the Commission’s “simplification” agenda and efforts to reduce the administrative burden on companies.

UK: FCA publishes SDR precontractual disclosure examples

The UK Financial Conduct Authority (FCA) has published a document setting out examples of how market participants can meet the pre-contractual disclosure requirement of SDR labels and investment labels. The examples are based on the FCA’s experience and are not intended to be exhaustive.

UK: National Energy System Operator

The National Energy System Operator, strategic adviser to the government and Ofgem has published its Clean Power 2030 report outlining how to achieve clean power by 2030. The UK Government and Ofgem will review the two pathways set out in the report with the intention of publishing a Clean Power Action Plan.

IAASB publishes ISSA 5000

The International Auditing and Assurance Standards Board (IAASB) has published the International Standard on Sustainability Assurance 5000, providing a framework for third parties (including verifiers) carrying out limited and reasonable assurance engagements in respect of sustainability reports. The standard aims to align with double materiality assessments used for the European Sustainability Reporting Standards.

Eurosif: recommendations for EU policymakers

On 20 November 2024, Eurosif published a regulatory roadmap setting out recommendations for EU policymakers.

FRC: annual review of corporate governance reporting

On 26 November 2024, the Financial Reporting Council (FRC) published its annual review of corporate governance reporting highlighting examples of good reporting and areas for improvement.

NGFS: adaptation and reporting on greening of financial system

On 14 November 2024, the Network for Greening the Financial System (NGFS) announced the publication of two documents: a conceptual note on adaptation and a synthesis report on the greening of the financial system.

UK Green Taxonomy consultation

HM Treasury has launched a consultation to gather the views on the value case for a UK Green Taxonomy as part of the UK’s wider sustainable finance framework.

The consultation closes on 6 February 2025. Please note that the LMA is intending to respond to this consultation so please do get in contact with the LMA if you would like to feed into their consultation response.

TNFD consultations

The Taskforce on Nature-related Financial Disclosures (TNFD) has published two discussion papers for feedback:

A Discussion paper on nature transition plans (open for feedback until 1 February 2025) and
A roadmap for upgrading market access to decision-useful nature related data (open for feedback until 17 January 2025).

GFANZ: Nature in net-zero transition plans consultation

The Glasgow Financial Alliance for Net Zero (GFANZ) has published a supplemental consultation paper on Nature in Net Zero Transition Plans.

The consultation paper sets out the role that nature plays in the context of net-zero transition plans and builds on a technical review of other relevant standards.

FRC consultation on investor Stewardship

The Financial Reporting Council has launched a consultation on its proposed updates to the UK Stewardship Code. The consultation closes on 19 February 2025.

UK: FCA publishes consultation paper proposing minor amendments to the anti-greenwashing rule and the SDR

On 6 December 2024, the FCA published a consultation paper setting out proposed changes to the anti-greenwashing rule by removing a more limited definition of “communicate” and clarifying the link between the anti-greenwashing rule and other requirements for “fair, clear and not misleading” communication. In addition, the FCA is proposing to clarify a number of SDR requirements around distributors, feed fund disclosures, pre-contractual disclosures and annual reports.