Sharing our knowledge and expertise
Explore our insights on climate change, business & human rights, sustainable finance, inclusion & diversity, energy transition, and more.
ESG highlights
COP26: Nature-based solutions to climate change
At a recent Clifford Chance event, a panel of experts discussed nature-based solutions and the crucial role nature plays in combating climate change and sustaining national economies, as well as examining how state and private sector nature-based solutions could be financed.
Find out more about COP26: Nature-based solutions to climate change
Latest trends in economic sanctions and trade controls
In this extract from a recent Clifford Chance webinar, we explore the latest trends in US, EU and UK policy on economic sanctions and trade controls, including compliance and enforcement risks and potential changes under the Biden Administration.
Find out more about Latest trends in economic sanctions and trade controls
10 Questions on the Proposed Carbon Border Adjustment Mechanism
The European Commission has published a proposal for a Regulation on a Carbon Border Adjustment Mechanism (CBAM) to deal with the long-standing problem of 'carbon leakage' that impedes the EU's decarbonisation plans. In this briefing we answer 10 key questions about the proposal.
Find out more about 10 Questions on the Proposed Carbon Border Adjustment Mechanism
ESG insights
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The role of tech in trade policy and climate change
A broad range of services – from digital and telecommunications services to engineering, cloud storage and artificial intelligence (AI) – will play an integral role in the transition to net zero. But for businesses to reach their emissions targets, the global trading system has to adapt, say business leaders in a report from Clifford Chance and the World Economic Forum (WEF).
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Investor Protection to Societal Protection? With Proposed Amendments and Recent Probe, SEC Takes Concrete Steps to Increase ESG-Related Disclosures by Public Companies and Investment Managers
On September 29, 2021, the U.S. Securities and Exchange Commission proposed amendments to Form N-PX under the Investment Company Act of 1940, as amended, to increase the amount of information that mutual funds, exchange-traded funds, closed-end funds and certain other registered investment companies must report about their proxy voting practices. The proposed rules also require certain investment managers to annually report how they voted proxies regarding executive compensation and other matters on Form N-PX. Managers would be required to categorize each proxy voting matter from a specified list of categories and subcategories, including compensation, corporate governance, the environment, diversity, and human rights or human capital.
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Diversity and inclusion on listed company boards and executive committees: FCA consultation on new reporting requirements
The proposals address the lack of standardised and mandatory transparency in this area by establishing better, comparable information on the diversity of boards and executive management against the background of a growing interest in ESG matters in investment decision-making, as well as wider social concerns.
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Delivering a Climate Trade Agenda: Summary of recommendations
The urgency of the climate crisis requires greater focus on how international trade and investment policy can support climate action. International trade is estimated to account for 20-38% of global emissions but, until recently, there have been limited efforts to harness trade policy to achieve climate objectives. As businesses increasingly pursue their own net zero targets, the upcoming COP26 meeting in November 2021 and WTO Ministerial in December 2021 provide opportunities for governments to accelerate these efforts through mutually supportive trade and climate policies.
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Latest trends in economic sanctions and trade controls
In this extract from a recent Clifford Chance webinar, we explore the latest trends in US, EU and UK policy on economic sanctions and trade controls, including compliance and enforcement risks and potential changes under the Biden Administration.
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And the survey says... DFS wants your diversity and inclusion details
Diversity and inclusion continues to be a hot topic within corporate America, with more and more regulators—including the New York State Department of Financial Services—chiming in.
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FCA consults on extending climate related disclosure requirements and certain ESG matters
On 22 June the FCA published CP21/18 consulting on proposals to extend the application of their climate-related disclosures listing rule to standard listed companies and also seeking views on broader environmental, social and governance (ESG) topics in capital markets. This consultation has two limbs. The first, is focused on the extension of the FCA's TCFD aligned 'comply or explain' listing rule and the second, is a more discursive fact finding request seeking views on ESG prospectus disclosure for debt securities and possible regulatory oversight of third party ESG verifiers and ESG rating agencies. The consultation is open until 10 September 2021. We have prepared another briefing considering the FCA's other consultation paper, Enhancing climate-related disclosures by asset managers, life insurers and FCA-regulated pension providers.
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ESG Trends: The rise of climate litigation and the challenges for business
Activist shareholders and NGOs targeting governments and businesses in relation to climate change are increasingly turning to litigation.
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Climate change litigation in Italy: The dawn of a new era?
Italy had seemed to be one step behind other countries where climate change litigation is concerned, with no climate-related litigation having been commenced in Italy in the past years. However, things may be about to change.
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Climate change, human rights and corporate duties – Dutch Court issues landmark decision
In a landmark judgment, Royal Dutch Shell (RDS) has been ordered by the District Court of The Hague to reduce its CO2 emissions by 45% by 2030, as compared with 2019 levels.
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Green Shoots: Sustainable Capital Markets in the Middle East
The development of sustainable finance continues to evolve across the Middle East – a region more readily associated with conventional energy resources such as oil and gas.
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ESG: European Commission finalises taxonomy 'Technical Screening Criteria' for climate mitigation and adaptation
The European Commission has finalised legislation containing the Technical Screening Criteria (TSC) for climate mitigation and adaptation activities supporting the Sustainable Finance Taxonomy Regulation. While the Commission has broadly retained the approach taken in its November 2020 draft, in some cases its approach to the details of the criteria has differed. This briefing looks at the finalised position.
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European Commission adopts long-awaited amendments for asset managers, insurers and insurance distributors on ESG integration
On 21 April 2021 the European Commission adopted a package of measures to help improve the flow of money towards sustainable activities across the European Union. This briefing provides an overview of what the Delegated Acts entail, and their impact on UK-based asset managers, insurers and insurance distributors.
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ESG: European Commission proposes Corporate Sustainability Reporting Directive
The European Commission has published a proposal for a Corporate Sustainability Reporting Directive (CSRD) as part of a package of measures aiming to direct capital flows towards sustainable activities.
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ESG Trends: What the latest Paris Agreement commitments mean for U.S. climate policy
With COP26 (the United Nations climate change talks) fast approaching, the U.S. has announced its new Nationally Determined Contribution (NDC) under the landmark 2015 Paris Agreement, pledging to reduce greenhouse gas emissions by 50-52% below 2005 levels by 2030. The announcement was made at President Biden's Leaders Summit on Climate, a virtual gathering of world leaders and representatives of civil society and the private sector, aimed at raising global ambition on climate action.
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Industrial Decarbonisation Strategy: The path to net zero
The Department for Business, Energy & Industrial Strategy (BEIS) has published its strategy setting out the path to decarbonising industry, aiding the goal of a net zero economy by 2050. This is the first strategy of its kind and sets out a series of actions across the next three decades, which will deeply decarbonise the UK economy, whilst still placing an emphasis on remaining competitive, creating jobs and avoiding pushing emissions abroad (carbon leakage).
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APAC ESG Perspectives: Australian key considerations
Environmental, Social and Governance (ESG) considerations are important to businesses for the opportunities they bring, and for the reputational and economic risks that come with making the wrong decisions. This briefing identifies a number of ESG considerations that may be relevant when doing business in Australia.
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ESG: Staying ahead of the regulatory curve in Europe
Central banks, financial regulators and governments around the world are focusing on the risks that climate change poses to the global economy. There are a number of factors in managing those risks, including the need for a robust categorisation system for "green" or "sustainable" investments, as well as reliable data on how companies and assets are performing against that categorisation. In this extract from a recent webinar, Clifford Chance experts discuss the latest developments in green and sustainable financial products and the impact of upcoming European legislation.
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ESG initiatives: From politics to the lending market
Environmental, Social and Governance ("ESG") initiatives are at the forefront of today's market economy as government and corporate leaders are urging advancements in sustainable investing. These broad-sounding terms have specific implications for the economy and corporate world, influencing the public and private sector, corporate behavior, new regulations, disclosure mandates and the lending market. In our series of articles covering the evolving ESG landscape we explore the changing discourse of leadership (both political and corporate), how such discourse presents opportunities in finance, and how legislative action may force the hand of holdouts in industry, all with a view of producing tangible milestones to measure progress of ESG initiatives.
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ESG: Sustainable Corporate Governance and New Due Diligence Duties in Europe
The European Union is currently consulting on sustainable corporate governance in the context of the European Green Deal. In this extract from a recent Clifford Chance webinar our experts explore the scope of the proposed legislation, including new requirements on mandatory human rights and environmental due diligence, and its impact on directors and their duty of care.We will also discuss how to influence the consultation process and how best to prepare for the next stage.
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Statutory quotas and targets to improve gender balance within Dutch large company boards
On 11 February 2021, the Dutch House of Representatives adopted the bill providing for a statutory diversity quota for companies with a stock-listing in the Netherlands.
