Sustainability: Recent Esg Developments
SUSTAINABILITY:RECENT ESG DEVELOPMENTSMarch 2022Environmental, Social and Governance (ESG) factors have fast risen to thetop of the board agenda across all sectors, with increasing awareness that afailure to address these matters can be detrimental both financially andreputationally. Investor pressure, internal governance and the proliferation ofregulatory requirements and voluntary standards across the globe makes thisa complex area to manage.This regular newsletter is a digestof key developments onSustainability and ESG from aroundthe Clifford Chance network,including: Legal and regulatorydevelopments Official publicationsThis newsletter is intended to assist banks, financial investors and corporatesin keeping up to date with ESG developments. Industry guidance, voluntarycodes and publicationsFurther details of these and previous developments can also be found on ourGreen and Sustainable Finance Topic Guide on the Clifford Chance FinancialMarkets Toolkit and further related resources can be found on our CliffordChance ESG page. Advocacy group publications Clifford Chance briefings andblogs Clifford Chance events ContactsHEADLINES THIS MONTH(23 February 2022) The European Commission adopted a proposal for aDirective on corporatesustainability due diligence.(9 February 2022) Clifford Chance Briefing: Insights into ESG in Japan(3 February 2022) Clifford Chance Briefing: ESG: Trends to watch in 2022LEGAL AND REGULATORY DEVELOPMENTSEuropean Union(28 February 2022) The European Commission (Platform on SustainableFinance) published the Final Report by Subgroup 4: Social Taxonomy. Thereport proposes a structure for social taxonomy within the present EUlegislative environment on sustainable finance and sustainable governance.Social Governance Market-wide(24 February 2022) The Council of the European Union has adopted itsposition on the European Commission proposal for a Corporate SustainabilityReporting Directive and is awaiting a decision from the European Parliamentahead of the three way negotiation (European Commission, EuropeanMarch 2022Clifford Chance 1
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.Parliament, Council of the EU) that will lead to the final adoption of theDirective.Environmental Social Governance Market-wide(23 February 2022) The European Commission adopted a proposal for aDirective on corporate sustainability due diligence. The proposal aims to fostersustainable and responsible corporate behaviour throughout global valuechains. The proposal must now be debated and adopted by the Council of theEU and the European Parliament according to the ordinary legislativeprocedure. Press releaseEnvironmental Social Governance Market-wide(23 February 2022) The European Securities and Markets Authority (ESMA)has published a call for evidence on the methodology to assess climate riskwith a new stress testing framework for central counterparties (CCPs). ESMAwill consider all comments received by 21 April 2022. Press releaseEnvironmental Financial institutions(3 February 2022) The European Securities and Markets Authority (ESMA)has launched a call for evidence on environmental, social and governance(ESG) ratings. The call for evidence is intended to complement and inform theEU Commission's planned consultation on the reliability, comparability andtransparency of ESG ratings, and its future work to address any issuesidentified. Comments are due by 11 March 2022. ESMA intends to report tothe EU Commission on its findings before the end of the second quarter of2022. Press releaseEnvironmental Social Governance Market-wide(2 February 2022) The European Commission has presented its TaxonomyComplementary Climate Delegated Act on climate change mitigation andadaptation covering certain gas and nuclear activities. The Commission hasapproved the draft Delegated Act in principle and it will be formally adoptedwhen all the language versions are available. It will then be subject to scrutinyby the EU Parliament and Council for a period of four months. Annex 1 Annex 2 Annex 3 Draft Commission Notice Q&AEnvironmental Market-wideFrance(27 January 2022) Following the publication of a charter by the FédérationBancaire Française and the Association Française des Marchés Financiers,the Autorité des Marchés Financiers (AMF) updated its policy dated December2020, to reflect the differences between the assets that are targeted by thefund's ESG promise and those that are ultimately acquired by thecounterparty.Environmental Social Governance Financial investorsIndia(24 January 2022) The Securities and Exchange Board of India published aconsultation paper on ESG rating providers for securities markets highlightingconcerns around ambiguity about the wide range of products offered,inconsistency in disclosures and transparency of the methodology and ratingprocess, the unregulated nature of the market and potential conflicts ofinterest.2 Clifford ChanceMarch 2022
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.Environmental Social Governance Market-wideItaly(11 February 2022) The Commissione Nazionale per le Società e la Borsa haslaunched a consultation (in Italian) on proposed amendments to Regulationno. 11971 of 14 May 1999 (Issuers' Regulation), for the purpose ofimplementing the following EU legislation into domestic law: Regulation (EU) 2019/2088 on sustainability disclosures in the financialservices sector (SFDR) and Regulation (EU) 2020/852 on theestablishment of a framework to encourage sustainable investment; and amending Regulation (EU) 2019/2088 (Taxonomy Regulation), withparticular reference to the requirements on pre-contractual disclosure inthe offering documents relating to UCITS.The consultation will end on 11 March 2022.Environmental Social Governance Market-wideThe Netherlands(11 February 2022) The Government of the Netherlands has launched aconsultation (in Dutch) regarding an Amendment to the Climate Act. Thecurrent Climate Act does not take into account the legally binding obligationsset out in the European Climate Act. On the basis of the European Climate Act-in order to be climate neutral in 2050 - a reduction standard of at least 55% in2030 applies. The amendment concerns a technical adjustment of the ClimateAct to the European Climate Act. The aim of climate neutrality in 2050 hasbeen laid down in the European Climate Act. A more substantive amendmentof the Climate Act is expected later this year.Environmental Social Market-wideSpain(28 February 2022) The Government of Spain has published an Order (inSpanish) to comply with the legal mandate contained in article 17 of Law7/2021 on climate change and energy transition, which, indicates that theNPACC (National Plan for Adaptation to Climate Change) will be developedthrough Work Programmes, to be implemented over five-year periods. ThisWork Programme defines and organises the set of measures to be developedby area of work, identifying priority measures and defining the responsibleadministrative units and collaborators for their development.Environmental Market-wideUnited States of America(11 February 2022) A Western District of Louisiana federal judge blocked theBiden administration's Executive Order 13990 that attempted to increase thegovernment's cost estimates resulting from greenhouse gas pollution. Severalstates sued the administration arguing that the president did not have thepower to enforce the estimates and that higher costs would irreparably harmtheir economies. The federal judge granted a preliminary injunction againstPresident Biden's day-one executive order directing federal agencies to usean accurate social cost of carbon calculation when creating rules for pollutingindustries. The court found that the president's actions contradicted Congress'March 2022Clifford Chance 3
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.intent regarding legislative rulemaking and that he did not have the authority todo so.Environmental Market-wide(10 February 2022) The U.S. Securities and Exchange Commission (SEC)proposed changes that would reverse amendments to its whistleblowerprogram. On September 2020, the SEC introduced an amendment that wouldhave given them authority to limit large awards based on their dollar amountonly. The second would have limited SEC's ability to pay an award if anotheragency's whistleblower program had a "more direct connection to the action."The new proposal would reverse these amendments by eliminating the SEC'sauthority to consider the dollar amount of an award for the purposes ofdecreasing such an award and allowing the Commission to pay awards forcertain "related actions" brought by other agencies.Social Governance Market-wide(9 February 2022) The U.S. Securities and Exchange Commission (SEC)proposed a rule seeking to increase disclosure and mitigate conflicts involvingprivate funds in an attempt to boost accountability in private capital. Theproposal seeks to amend the Investment Advisers Act of 1940 by requiringthat private fund advisers share with investors quarterly disclosures detailinginformation abound fund fees, expenses, and performance. It would also barprivate fund advisers from providing preferential treatment to investors unlessthat information is disclosed to current and potential investors. The proposalwould also require annual audits for each private fund and notification to theSEC of certain events. The SEC's rule is one of many ongoing efforts toincrease transparency in private investments. Public comment on the proposalwill remain open for 60 days.Governance Financial institutions FundsBack to topOFFICIAL PUBLICATIONSInternational(15 February 2022) The European Banking Federation and the United NationsEnvironment Programme Finance Initiative have published a report onpractical approaches to applying the EU Taxonomy to bank lending. PressreleaseEnvironmental Social Governance Banks(14 February 2022) The International Capital Market Association haspublished a report on the usability of the EU Taxonomy Regulation, followingthe phased implementation of its reporting requirements, which began inJanuary 2022. The report identifies some potential challenges which mayprevent parties, particularly those in the financial and corporate sectors, fromaligning fully with the requirements of the Taxonomy.Environmental Social Governance Market-wide(7 February 2022) The UN Principles for Responsible Investment publishedDiversity, Equality and Inclusion: Key Actions for Investors. The paper outlineshow and why investors should act on issues relating to diversity, equality and4 Clifford ChanceMarch 2022
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.inclusion (DEI) and provides the case for integrating DEI into investment andownership decisions. Press releaseSocial Market-wide(2 February 2022) The Principles for Responsible Investment published a draftposition paper which provides an analysis of the two prototype standardsdeveloped by the Technical Readiness Working Group (TRWG), which werepublished for consideration by the ISSB early November 2021. The paperprovides recommendations on how the TRWG could be further improved andaims to inform the development of the IFRS Sustainability DisclosureStandards led by ISSB.Environmental Social Governance Market-wideEuropean Union(15 February 2022) The European Securities and Markets Authority (ESMA)has published an article, 'Monitoring environmental risks in EU financialmarkets' looking at how environmental risks can be expected to impact EUsecurities markets and their participants and laying out ESMA’s approach tointegrating environmental risks in the risk assessment and monitoringframework.Environmental Market-wide(11 February 2022) The European Securities and Markets Authority (ESMA)has published its Sustainable Finance Roadmap 2022-2024 setting outESMA's deliverables on sustainable finance and how they will be implementedover the next three years. The three priorities for ESMA's sustainable financework are tackling greenwashing, building national competent authorities'(NCAs) and ESMA's capacities in the sustainable finance field and analysingESG markets and risks. Press releaseEnvironmental Social Governance Market-wideAbu Dhabi(19 January 2022) The Abu Dhabi Global Market (ADGM) announced itsfourth edition Abu Dhabi Sustainable Finance Forum. During the forum,ADGM unveiled a series of new initiatives and programmes designed tosupport the sustainable finance agenda which includes the SustainableFinance Platform, ESG Intelligence Sustainable Finance Report andachievements of ADGM’s partners working towards financing sustainableeconomic growth while supporting net-zero targets.Environmental Social Governance Market-wideDubai(27 January 2022) The Dubai Government announced an integrated strategywith a budget of Dh 74.5 billion, to enhance environmental sustainability in theEmirate from 2021-2024. This will include projects to manage waste andencourage innovation in converting it into energy.Environmental Market-wideFrance(18 February 2022) Autorité de Contrôle Prudentiel et de Résolution publishedits first report on climate change risk governance in the insurance sector.March 2022Clifford Chance 5
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.Environmental Insurers(28 December 2021) The Autorité de Contrôle Prudentiel et de Résolution andthe Autorité des Marchés Financiers (AMF) published their second report onthe monitoring and evaluation of the climate-related commitments made byFrench financial institutions.Environmental Asset managers Banks Financial investorsHong Kong(23 February 2022) In the 2022-23 Budget Speech Financial Secretary, HongKong Government, suggests that green and sustainable finance developmentin Hong Kong continues to be a key initiative to support Hong Kong’s net zeroagenda as well as the country’s '3060' target in relation to carbon emissionpeak and carbon neutrality.Environmental Social Governance Market-wideJapan(17 February 2022) The Financial Services Agency has announced theestablishment of a Technical Committee on ESG ratings and data providers aswell as companies and investors, which also play essential roles in ESGassessment, data provision, and finance.Environmental Social Governance Market-wideThe Netherlands(28 February 2022) The Netherlands Authority for the Financial Markets (AFM)has recently organised round table meetings on non-financial information inreporting, and discussed this with the financial sector, investors, and otherstakeholders. A key topic of these sessions was transparency about theimpact companies have on the climate, people, and society, and how thesesustainability issues affect those companies. In a special publication,'Transparency on sustainability', the AFM presents the key take-aways fromthose meetings.Environmental Social Governance Market-wide(15 February 2022) The Dutch government has published a letter (in Dutch)on the implementation of the Climate and Energy Coalition agreement and onthe way in which direction and governance are implemented. The CoalitionAgreement includes measures that contribute to achieving the climate goals.In May 2022, the Cabinet will present the Climate and Energy policyprogramme, which contains a legislative programme, that aims to monitor theestablishment of the necessary legislation.Environmental Social Market-wideSpain(28 February 2022) The CNMV (Spanish National Securities MarketCommission) published a separate report (in Spanish) on the supervision ofStatements of Non-Financial Information (SNFI) of issuers of securitiesobliged to prepare and publish such statements. The report identifies goodand bad practices that can be useful in improving the quality of SNFIs.Particular attention will be given to the reporting on greenhouse gas (GHG)emissions and on the impact of COVID-19. Press release (in Spanish)6 Clifford ChanceMarch 2022
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.Environmental Social Governance Market-wide(17 February 2022) The CNMV (Spanish National Securities MarketCommission) has published a Working Document "Characteristics of SpanishSustainable Collective Investment Schemes in 2020" (in Spanish) to learnmore about the characteristics of the Spanish sustainable CISs that wereregistered at the end of 2020 with the CNMV: a total of 59 institutions betweeninvestment funds and SICAVs and assets of close to 9.5 billion euros (3.1% ofthe total assets of these institutions). The present study does not consider,therefore, the latest developments of 2021, which will be analysed insubsequent years.Governance Market-wideUnited Arab Emirates(25 January 2022) The UAE Government launched the United Nations (UN)platform, "Big Data for Sustainable Development" at the 'Mobilising Big Dataand Data Science for the Sustainable Development Goals' forum. The UAE isone of four countries selected as a regional headquarters for the platform andthis highlights the UAE leadership's keenness to achieve the sustainabledevelopment goals (SDGs) by employing big data and artificial intelligence(AI) technologies, as part of an initiative aimed at meeting the needs of theMiddle East and North African (MENA) region.Environmental Social Governance Market-wideUnited Kingdom(25 February 2021) The Financial Conduct Authority (FCA) published a finalversion of the new primary market technical note on TCFD aligned climaterelated disclosure requirements for listed companies. Technical note 802.1,which has been finalised following public consultation, sets out guidance forissuers and practitioners on the interpretation of the FCA's Listing Rules andother relevant provisions relating to ESG and climate change.Environmental Governance Market-wide(23 February 2022) The Financial Reporting Council issued the first in-depthassessment of the quality of reporting from private companies who havechosen to follow the Wates Principles showing that the Wates Principles arethe most widely adopted corporate governance code used by large privatecompanies. IoD responseGovernance Corporates(21 February 2022) The Department for Business, Energy and IndustrialStrategy published Guidance: Mandatory climate-related financial disclosuresby publicly quoted companies, large private companies and LLPs. This nonbinding guidance aims to assist in-scope companies and LLPs understandhow to meet new mandatory climate-related financial disclosure requirementsunder SI 2022/31 and SI 2022/46. The regulations come into force on 6 April2022 and apply to accounting periods starting on or after that date.Environmental Market-wide(14 February 2022) The Financial Reporting Council (FRC) has published aStaff Guidance, Auditor responsibilities under ISA (UK) 720 following theintroduction of FRC's TCFD aligned climate-related disclosure requirementsfor listed companies. The guidance note is designed to address the FRC'sMarch 2022Clifford Chance 7
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.commitment to monitor the need for guidance on ESG-related matters andissue audit and assurance guidance at the national level as appropriate.Environmental Social Governance Auditors Corporates(9 February 2022) The Bank of England has launched the second round of theBiennial Exploratory Scenario (BES) on financial risks from climate change.The second round of the BES will comprise a small number of questions,further exploring participants' strategic responses to the three scenariospublished as part of the first round and the associated implications for theirbusiness models. The second round closes on 31 March 2022.Environmental Banks InsurersUnited States of America(18 February 2022) The White House Council on Environmental Quality (QEC)released an environmental justice screening tool aimed at helping identifycommunities plagued by environmental hazards. QEC described the tool as amajor step toward correcting historic injustices by identifying disadvantagedcommunities. The tool will help agencies comply with President Biden'sstrategies for tackling the climate crisis, including the Justice40 initiative thataims to utilise 40% of federal clean energy and climate dollars on marginalizedcommunities across the country. The tool was developed pursuant to anexecutive order directing the federal government to develop ways to tackle theclimate crisis. The White House is accepting feedback until April 19 beforeadvancing with a finalised version.Environmental Market-wide(15 February 2022) The Biden administration announced new actions acrossagencies to 'support American leadership on clean manufacturing.' Theactions include the production of low-carbon steel and aluminium for electricvehicles, wind turbines, solar panels, and clean concrete to develop thecountry's transportation infrastructure. Some of the initiatives include an 8billion investment for the Hydrogen program of the Department of Energy(DOE), 1.5 billion for DOE's Hydrogen Manufacturing program, and thecreation of the Buy Clean Task Force to develop 650 billion of annualpurchasing power to buy low-carbon, made-in-America, materials.Environmental Market-wide(3 February 2022) The U.S. Department of Defense (DOD) and the U.S.General Services Administration (GSA) issued a Request for Information (RFI)for 'interested parties' on the availability of carbon-free electricity as a step intheir efforts to meet President Biden's goal for the federal government todecarbonise by 2050. The joint RFI seeks information on the current marketand available capabilities for carbon pollution-free electricity. The RFI followsthe Biden administrations executive order in December instructing thegovernment to decarbonise itself by 2050.Environmental Market-wide(19 January 2022) New York State Comptroller Thomas DiNapoli and thestate's pension fund announced the filing of shareholder proposals seekingindependent reviews of companies' practices on racial equity. Theseproposals are part of the Comptroller's efforts to ensure corporations addressconcerns about racial equity in their operations, while holding companiesaccountable when they fail to act.8 Clifford ChanceMarch 2022
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.Governance Market-wide(31 January 2022) The Securities and Exchange Commission (SEC)published the Staff Report on Nationally Recognized Statistical RatingOrganizations (NRSROs). It notes that NRSROs are offering an increasingnumber of ESG-related products and services and SEC Staff have identifiedseveral areas of potential risk.Environmental Social Governance Rating agenciesBack to topINDUSTRY GUIDANCE, VOLUNTARY CODES ANDPUBLICATIONSInternational(25 February 2022) The International Auditing and Assurance StandardsBoard published their project aims on sustainability/environmental, social andgovernance (ESG) reporting from an audit and assurance perspective. Theproject is at information gathering stage with the proposed project to bedelivered late 2022.Environmental Social Governance Market-wide(21 February 2022) International Capital Markets Association published apaper ‘Ensuring the usability of the EU Taxonomy’ which identifies challengesfor the financial and corporate sector in providing information on the alignmentof their activities with the EU Taxonomy as required by existing and proposedfuture regulatory reporting.Environmental Social Governance Market-wide(21 February 2022) The International Regulatory Strategy Group andAccenture UK jointly published a report entitled 'ESG Ratings and ESG Datain Financial Services – A view from practitioners' looking at the challenges themarket faces and offers recommendations for industry, regulators andpolicymakers can take to futureproof the integrity and efficiency of the ESGRatings Market.Environmental Social Governance Market-wide(13 February 2022) McKinsey & Company published a report, 'The net-zerotransition: What it would cost, what it could bring', looking at the transformationthat a transition to net-zero emissions would entail for governments andcompanies worldwide.Environmental Corporates Sovereigns(7 February 2022) Glass Lewis announced that ESG scores and data will beincluded in a new ESG Profile page within its Proxy Paper research reportsprepared on individual companies.Environmental Social Governance Corporates(7 February 2022) The NewClimate Institute in collaboration with CarbonMarket Watch published Corporate Climate Responsibility Monitor 2022,which assesses the transparency and integrity of 25 multinational companies'emission reduction and net zero targets.March 2022Clifford Chance 9
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.Environmental Governance Corporates(4 February 2022) The Institutional Investors Group on Climate Changepublished, Consultation on Proposed Components for Private Equity,highlighting a new component for the Paris Aligned Investment Initiative's NetZero Investment Framework, providing guidance on aligning private equityportfolios with net zero that is relevant to both Limited Partners and GeneralPartners. The proposed private equity guidance consultation closes 27February 2022, with the final component expected to be published in Q2 2022.Environmental Asset managers Corporates Financial investorsEuropean Union(16 February 2022) The European Law Institute has published a report, withinput from the European Union Agency for Fundamental Rights, whichidentifies a range of possible regulatory and/or soft-law options that aim toincrease access to remedies in the EU and to ensure corporate human rightscompliance. The options are set out at Member State level, at EU level and fornon-Member States. For the purposes of the report, human rights includesrights in the broader sense of proper employment practices and care for theenvironment.Environmental Social Governance CorporatesHong Kong(4 February 2022) Hong Kong Green Finance Association published aresearch report entitled Developing Hong Kong as a Leading Investment FundHub for Green and Sustainable Infrastructure Financing, which outlinesrecommendations for the Hong Kong Government on enhancing its legal, taxand regulatory environment to facilitate or attract the setting up of green andsustainable investment funds in Hong Kong.Environmental Social Governance Market-wideNigeria(15 February 2022) The Green Finance Platform and Climate TransitionLimited announced the launch of the Nigeria Green Tagging Banking Review.The Review offers guidance on developing a monitoring and disclosureframework for financial institutions to transparently report their financialfootprint, green and brown lending, to the Nigerian Central Bank and otherfinancial regulators.Environmental BanksUnited Kingdom(23 February 2022) The Pensions and Lifetime Savings Association publishedits 2022 Stewardship Guide and Voting Guidelines providing practicalguidance for pension schemes considering how to exercise their voting rightson key issues of concern during the 2022 AGM season. Key areas highlightedin the 2022 Guide include climate change and sustainability policy, use ofvirtual AGMs, remuneration practices and diversity in the workforce.Governance Corporates(22 February 2022) The FTSE Women Leaders Review, supported by theDepartment for Business, Energy and Industrial Strategy, published their firstreport noting that 39.1% of UK FTSE100 board positions are now held by10 Clifford ChanceMarch 2022
HEADER – TWO LINES ONLY. USE SEARCHENGINE FRIENDLY TERMS.women; with 36.8% in the FTSE250 and 37.6% in the FTSE350. The Reviewhas also recommended that its scope should be widened to include the largest50 private companies, by sales, in the UK. Press releaseSocial Corporates(8 February 2022) The UK Green Building Council has published a reportentitled 'Framework for Measuring and Reporting of Climate-related PhysicalRisks to Built Assets' providing businesses with a consistent methodology formeasuring climate-related risks across their built assets, as well asempowering asset owning businesses of all sizes to better understand andplan for the physical risks of climate change.Environmental Asset managers Corporates Financial investors(31 January 2022) A joint working group of the Association of British Insurers,The Investment Association and the Pensions and Lifetime SavingsAssociation launched a Carbon Emissions Template in response to newrequirements for pension schemes under the Occupational Pension Schemes(Climate Change Governance and Reporting) Regulations 2021), to obtaindata and calculate their emissions as a step towards identifying and assessingthe climate-related risk and opportunities they face.Environmental PensionsUnited States of America(10 February 2022) Intelligize staff examined SEC comment letters addressingpublic companies’ disclosure obligations related to the topic of climate changeand reviewed the SEC’s history of guidance on environmental disclosure.Environmental Market-wideBack to topADVOCACY GROUP PUBLICATIONSEuropean Union(19 January 2022) The European Coalition for Corporate Justice published alegal briefing, Model EU law on corporate accountability in global value chains,which identifies a set of minimum provisions that the Coalition believes EUwide mandatory corporate due diligence and accountability legislation shouldinclude to ensure an effective and comprehensive EU regulatory framework.Environmental Social Governance CorporatesUnited States of America(14 January 2022) Several organisations, including the International CorporateAccountability Roundtable, Human Rights Watch and the Business & HumanRights Resource Centre have written a letter to the sponsors of the proposedFashion Sustainability and Social Accountability Act in New York with arequest to strengthen and expand the provisions on labour disclosure.Environmental So
Council of the European Union has adopted its position on the European Commission proposal for a Corporate Sustainability Reporting Directive and is awaiting a decision from the European Parliament ahead of the three way negotiation (European Commission, European This regular newsletter is a digest of key developments on
ESG PORTFOLIO EXTENDED SUMMARY REPORT December 03, 2020 Portfolio Benchmark Weighted Avg ESG Score 6.20 6.03 Adjustment ESG Trend Positive 4.74% 15.81% LAGGARD AVERAGE LEADER Distribution of MSCI ESG Fund Ratings Universe Adjustment Total 0.81% 0.88% Score Adjustment 0.05 - ESG Trend Negative 2.02% 7.49% - ESG Laggards 1.91% 7.44% ESG Quality .
stated to apply to ESG ratings providers may apply to ESG data products providers, and vice versa. 1. The term ESG ratings and data products providers, as used in this report, covers providers who offer ESG ratings and/or ESG data products. Where there is a need to single out ESG data products providers who
ESG quality, from the asset allocation mix, a question similarly posed by Schroders [2019]7. DWS Approach to ESG in SAA On the aforementioned point of inclusive versus exclusive ESG SAA approaches, we take the more inclusive approach. First, ‘ESG integration’ as for PRI is primarily a risk
Portion of cases where ESG affected portfolio construction LE 6.1 150/150 Pre-investment phase ESG risk management Compliance processes for negative screening LE 8 200/200 Post-investment phase ESG risk management Incorporation of ESG in regular reviews LE 9 150/150 Post-investment phase ESG risk management Identification of ESG incidents LE .
ESG and financial variables is interpreted as ESG being the cause and financial value the effect, however the transmission can be interchanged. COMPONENTS/CRITERIONS OF ESG: 3 key components of ESG are - Environmental, Social and (corporate) Governance aspects. Since ESG factors are often interrelated, there may be scenarios
Example ESG Switchable Glass Sound Control Data ESG Switchable - Examples of Optical Performance* Thickness Standard Construction ESG Switchable Std dB Rating (Rw) ESG Switchable Acoustic dB Rating (Rw) 10 mm 4 mm Low Iron tempered glass x 1.52 PVB 0.4 mm LCD x 4 mm Low Iron tempered glass 35 37 12 mm 5 mm Low Iron tempered glass .
and Asia Pacific) since 2011 MSCI ESG Leaders and ESG Socially Responsible Investing Indexes since 2009; 'AAA' rating since 2010 Industry Leader, Real Estate, 2018; ESG Risk Rating: 1st / 541 (Real Estate Group); 3rd / 9,545 (Global Universe) Top 10 Constituent Companies - ESG Leaders Index - ESG Transparency Index OTHER AWARDS AND ACCOLADES:
unitholders and create a better and more resilient real estate market. The idea of emphasizing topics of ESG is still in the early years of its infancy in the Baltics. Yet we believe that this sustainability report will not only help Baltic Horizon strengthen its commitment to ESG but will bring the message of sustainability and importance of ESG issues to the wider Baltic real estate market .
