|The recently-launched EU Taxonomy bridges the gap between climate goals and investment practice. It represents a generational shift for responsible investment, and the PRI supports the EU’s efforts to establish the Taxonomy in regulation.|
Also of note this month is the UK’s commitment to net zero greenhouse gas emissions by 2050, and don’t forget to register interest in our sustainable finance policy conference taking place alongside PRI in Person in Paris this September – places are limited!
For any questions or comments on anything in this newsletter, or to request a briefing, please contact us.
Director of Policy & Research GlobalPRI conference on global sustainable finance policy Join the PRI, BNP Paribas and BNP Paribas Asset Management for the first responsible investment conference dedicated to global policy reform in support of a more sustainable financial system.
Running adjacent to PRI in Person in Paris on 9 September, the event will convene senior policy makers, and regulatory and investment professionals.
Register your interest here.
A Legal Framework for Impact: Request for Proposals from law firms The PRI, UNEP FI and The Generation Foundation have issued a Request for Proposal from a law firm, or a proven partnership or network of law firms, to understand and analyse how or whether legal frameworks consider the management of sustainability impact by investors in major jurisdictions.
The project is a unique opportunity to advance the global economy’s transition to a more sustainable model – one that is aligned with the global climate agenda, under the framework of the UN Sustainable Development Goals.
Final proposals must be submitted by 26 July. Find out more here. USUS Securities and Exchange Commission finalises new conduct rules The SEC has finalised regulatory pronouncements aimed at clarifying the obligations of investment professionals in relation to their clients. The interpretation of a standard of conduct for investment advisors reaffirms that investment advisors owe a fiduciary duty to their clients, but reinterprets the nature of that duty. Regulation Best Interest codifies rules defining appropriate broker conduct. It requires brokers to: provide basic disclosures to clients about fees, conflicts and other matters; exercise reasonable care; and implement policies and procedures designed to disclose or eliminate conflicts of interest. It does not define what it means for a broker to act in the client’s best interest. Read more here.
The PRI is monitoring these issues closely. The PRI believes that all those who provide investment advice owe their clients a fiduciary duty, which includes integrating material ESG factors. UKUK commits to net zero greenhouse gas emissions by 2050In May, the UK government committed to reduce its greenhouse gas emissions to net zero by 2050 – at the latest. The Climate Change Act 2008 has since been amended, replacing the previous target of an 80 percent reduction compared with 1990 emissions.
Treasury Select Committee opens green finance inquiry
The UK’s Treasury Select Committee, which scrutinises the policies and spending of HM Treasury, is accepting submissions for its inquiry on the decarbonisation of the UK economy and green finance. The inquiry will look at the financial sector’s role in achieving net zero emissions, and the barriers to green finance. Respond by 26 July.
Institute is launched to encourage impact investingThe UK government has created an Impact Investing Institute to grow the domestic impact investing market and mobilise investor and individual capital towards impact projects. It combines two previous working groups, the UK National Advisory Board on Impact Investing and the Implementation Taskforce. ChinaRecommendations for primary ESG indicators in China are publishedA new report provides recommendations for China’s future mandatory environmental, social and governance disclosure framework. Among the main conclusions is that in order to provide usable and comparable ESG data to investors, companies should be required to report on a standardised set of primary ESG disclosure indicators.