1) Since the new measure of SFDR will be released this coming January, asset managers are scrambling to submit their changes to fund documents before December 1. The Central Bank of Ireland (CBI) is speeding up the process of approving the changes to fund documents to ensure that investment managers are able to meet the level 2 SFDR criteria.
Gayle Bowen, a specialist at law firm Pinsent Masons, described the deadline of this December as a “matter of urgency” .
Source: Central Bank of Ireland to accelerate approvals of fund updates ahead of SFDR changes
2) The Australian Sustainable Finance Institute (ASFI) is currently cooperating with associations like the Responsible Investment Association Australasia (RIAA), the Investor Group on Climate Change, and the Australian Council of Superannuation Investors to create a sustainable finance taxonomy for Australia which will help the country move away from consuming fossil fuels as an energy source.
Kristy Graham, ASFI’s executive officer, stated in a recent interview that an Australian taxonomy is necessary to “build credibility around definitions of activities that are supporting a transition to net zero.”
Source: ASFI: Mobilising capital for a more sustainable Australia
3) The Principles for Responsible Investment (PRI) joined forces with Finance for Tomorrow and the Forum pour l’Investissement Responsable (FIR) to produce a guideline that further explains how the finance sustainable policy works in France. The guideline is originally based off of a roadmap that was established in 2018 which includes recommendations, interviews and many more.
“While French and European regulations have helped provide a framework to promote real environmental and social impacts, there is still a lot to be done to mobilise the necessary sustainable investments in the face of environmental crises” states Margarita Pirovska, Director of Policy at PRI.
The document is available in French and English and can be downloaded from the link.
Source: Sustainable Finance Policy Roadmap: France
4) Some regulations in the Sustainable Finance Disclosure Regulation (SFDR) are unclear and are restricting ETF innovation. This year, the European Supervisory Authority (ESA) requested several clarifications on what falls under certain articles of the SFDR even though the regulation has been effective since March 2021.
According to ETF Stream, asset Managers and index providers within ESG are reluctant to innovate new products “because they are worried about getting the regulation wrong”.
Source: SFDR ‘contradictions’ stifling ETF innovation, Tabula CIO warns
5) The biggest reinsurer in the world, Munich Re, has established rigorous guidelines for itself as part of their commitment to achieving the goals of the Paris Climate Agreement. Their mission revolves around working towards decarbonization in their business activities.
Starting April 1, 2023, the group will no longer support and invest in :
- Gas and oil fields
- Oil-related infrastructure
- Power plants that run on oil
Source: New Oil & Gas investment / underwriting guidelines
#SFDR #ESA #sustainableregulation #climateregulation #sustainablefinance #netzero #greenfinance