Environmental, Social and Governance ("ESG") factors have fast risen to the top of the board agenda across all sectors, with increasing awareness that a failure to address these matters can be detrimental both financially and reputationally. Investor pressure, internal governance and the proliferation of regulatory requirements and voluntary standards across the globe makes this a complex area to manage.

This newsletter is intended to assist banks, financial investors and corporates in keeping up to date with ESG developments. Further details of these and previous developments can also be found on our Green and Sustainable Finance Topic Guide on the Clifford Chance Financial Markets Toolkit and further related resources can be found on our Clifford Chance ESG page. 

LEGAL AND REGULATORY REQUIREMENTS

China

• (9 September 2021) :The Central People's Government of the People's Republic of China published its Human Rights Action Plan of China (2021- 2025) which set out its objectives and proposed steps to protect, respect and promote human rights. The Action Plan encourages Chinese businesses to follow the UN Guiding Principles on Business and Human Rights, carry out due diligence and to respect and promote human rights. It also sets out a strategy to secure eco-environmental progress and to improve the legal system for environmental protection. Environmental Social Governance | Corporates

European Union

• (15 September 2021) The President of the European Commission announced in her 2021 State of the Union Address that the Commission would propose a ban on products in the EU market that had been made by forced labour. The terms, scope, and date of such a ban have not yet been specified. It is not clear how this would fit with a directive the European Commission is due to propose later this year introducing mandatory human rights and environmental due diligence of international supply chains. Social Governance | Market-wide
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