UK and EU Sustainable Finance Regulation: Taking Stock with Change on the Horizon | Proskauer Rose LLP

Both opportunities and challenges have arisen for the asset management industry as a result of the rapid introduction of UK and EU sustainable finance regulation in recent years. The new requirements have been heightened in complexity due to the piecemeal official guidance provided, jurisdictional “gold-plating” of expectations, the start of greenwashing enforcement and litigation cases, and the sheer volume of legislation and regulation itself. 

With a brief pause before further significant movement in this space is expected in Q3 and Q4 2023, Proskauer’s UK Regulatory team explores some actions and considerations for now, whilst also setting out some of the legal and regulatory changes on the horizon. Please refer to our previous horizon scanning article here.

Please note that we have not covered sustainability corporate reporting developments as set out in the EU’s Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, or in the ISSB’s proposed standards (which the UK is likely to adopt). However, these developments may also be relevant.

Overall, asset managers and advisers may wish to refresh on the areas above to ensure they are aware of the current status, applicability and approach for existing regulatory sustainable finance requirements, as well as support readiness for the regulatory developments in the pipeline.

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