On 7 August 2024, the European Commission published a set of frequently asked questions on the implementation of the EU Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464) (“CSRD“) and the interpretation of certain legal provisions in the Accounting Directive (Directive 2013/34/EU), the Transparency Directive (Directive 2004/109/EC) and the Sustainable Finance Disclosure Regulation (Regulation
On July 15, 2024, Governor Gavin Newsom proposed amendments that would, among other things, delay initial reporting deadlines for two of California’s recently enacted climate-related disclosure laws by two years.
Governor Newsom signed the two bills, Climate Corporate Data Accountability Act (California Senate Bill 253 (SB-253)), relating to greenhouse gas (GHG) emissions disclosures, and the
On 24 July 2024, the European Securities and Markets Authority (“ESMA“) published an opinion on the sustainable finance regulatory framework (the “ESMA Opinion“), which outlines the ESMA’s long-term vision for the functioning of the EU’s sustainable finance framework (the “Framework“). The ESMA Opinion builds on the findings of the
A major overhaul of the UK’s planning (zoning) system was unveiled on 30 July. This is aimed at tackling the UK’s chronic housing shortage, as well as the challenge of net zero. The lack of affordable housing in the south-east of England, for example, means that average house prices there are ten times the average wage. At the same time, public sector housebuilding has slowed to a trickle and rents have soared. Similarly, the planning system has been identified as a major block on renewables and low-carbon developments in the UK.
In response, the new UK Government has announced significant changes to the National Planning Policy Framework (“NPPF“) which guides decision-making on individual planning applications as well as the content of local planning policies (against which applications for individual sites are assessed). The main aim is to kick-start an unprecedented programme of housebuilding with a huge proposed target of 371,000 per year against current delivery of about 200,000 units per year. There will also be increased requirements on developers to provide affordable housing on new housing developments. Commentary so far has rightly focused on these important housing-related changes in the draft NPPF, but the draft NPPF goes much further than housing. Specific focus is given to renewables and low-carbon projects, digital technology, gigafactories, laboratories and logistics.
In this briefing, we summarise the main proposed changes in the draft NPPF and identify further likely upcoming reforms to be made to the planning system including through the new Planning and Infrastructure Bill. Continue Reading UK planning reforms to focus on social developments and net zero
Deforestation is now the second leading cause of climate change globally, after burning fossil fuels, and is responsible for around 11% of all greenhouse gas emissions. In the last 60 years more than half of tropical forests worldwide have been destroyed, reducing biodiversity and endangering rare species (see Fifth Special Report of Session – 2023-24:
The Commission Delegated Regulation (EU) 2024/1700 supplementing Regulation (EU) 2017/2402 with regard to regulatory technical standards (“RTS”) was adopted on June 18, 2024. These RTS set out the content, methods and presentation of information in relation to the principal adverse impacts (“PAIs”) of the assets financed by the underlying exposures on sustainability factors for securitizations and the new rules will enter into force on 8 July 2024. ESG STS disclosure is a key feature of the EU’s objectives to promote sustainable finance and steer capital flows towards sustainable activities.Continue Reading Be prepared: The technical standards on STS securitizations’ ESG disclosures enter into force on July 8, 2024
After the results of the European elections, where the presidential political party lost a significant number of seats at the European Parliament, the president of the French Republic Emmanuel Macron decided to dissolve the National Assembly. This dissolution was effected by the presidential “Decree of June 9, 2024 dissolving the National Assembly“, which was published in the Official Journal of the French Republic on June 10, 2024.
At the time of the dissolution, several projects and proposals of laws were pending adoption within the French Parliament and the question of the status of these texts was scrutinized by the media shortly after the dissolution. Particular concern was raised by certain media articles about the consequences of the dissolution on pending environmental legislation, including the proposed legislation to protect the population from risks linked to Perfluoroalkyl and Polyfluoroalkyl Substances (“PFAS“) (the “Proposed PFAS Law”).
The Proposed PFAS Law had drawn quite substantial public attention as, if enacted, France would become the first EU Member State to heavily prohibit PFAS in products. The Proposed PFAS Law was also developed in parallel to the development of a PFAS restriction at the EU level, which drew criticism from industry bodies and some French parliament representatives. Continue Reading Dissolution of the French National Assembly: what does it mean for the Proposed PFAS Law?
Japan is considering whether to require all of its primary listed companies to publish an annual sustainability report which substantively conforms with the standards issued by the IFRS’ International Sustainability Standards Board (“ISSB”). The new mandatory disclosure rule would be applied in phases based on the size of market capitalization, with the biggest companies planned
The European Securities and Markets Authority (ESMA), published a combined report on its 2023 Common Supervisory Action (CSA) and the accompanying Mystery Shopping Exercise (MSE) on marketing disclosure rules under MiFID II. ESMA, together with the National Competent Authorities (NCAs), states that marketing communications and advertisements generally comply with MiFID II requirements. Investment firms generally have procedures in place that ensures compliance with the rules for marketing materials. However, there are increasing concerns about marketing material which includes sustainability claims. ESMA identified several areas of improvements and announces that further supervisory actions in this area shall be undertaken.Continue Reading ESMA’s Final Report on the 2023 Common Supervisory Action and Mystery Shopping Exercise on marketing
On 16 May 2024, the UK Government published an implementation update on its development of economy-wide sustainability disclosure requirements (the “Implementation Update“). The Implementation Update, which the UK Government committed to publishing in its 2023 Green Finance Strategy (which you can read more about here), discusses: