Multijurisdiction: Bite-size Briefings - Environmental, Social and Governance (ESG) regulation

In brief

A series of briefings that take a bite-size look at international trends in different jurisdictions, drawing on Baker McKenzie's expert financial services practitioners with local market knowledge.


Contents

This edition takes a bite-size look at the different rates of progress of environmental, social and governance (ESG) regulation and voluntary standards across the European Union, Hong Kong SAR, Japan, Singapore, the United Kingdom and the United States. The 2015 Paris Agreement on Climate Change specifically identified finance as having a key role in mitigating the effects of global warming, as large-scale investments are needed to significantly cut emissions. Nor, of course, are financial institutions themselves immune from the effects of climate change, as their prudential soundness and ability to meet long-term commitments will be jeopardized if the value of their capital is impacted. The COVID-19 pandemic has provided a significant impetus to the adoption of ESG regulation and voluntary standards, although the industry's progress is being slowed by a lack of common and consistent international standards over disclosure and classification. What was, initially, (largely) voluntary is becoming essential to win business and is, increasingly (especially in Europe), subject to legal and regulatory imperative, as exemplified by the number of jurisdictions proposing to make mandatory the Task Force on Climate-related Financial Disclosures (TCFD).

View publication


© 2021 Baker & McKenzie. Ownership: This site (Site) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms, including Baker & McKenzie LLP). Use of this site does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All information on this Site is of general comment and for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulation and practice are subject to change. The information on this Site is not offered as legal or any other advice on any particular matter, whether it be legal, procedural or otherwise. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any information provided in this Site. Baker McKenzie, the editors and the contributing authors do not guarantee the accuracy of the contents and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the contents of this Site. Attorney Advertising: This Site may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Site may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. All rights reserved. The content of the this Site is protected under international copyright conventions. Reproduction of the content of this Site without express written authorization is strictly prohibited.