This page provides details of work being undertaken by governments, regulators and standard setting bodies in relation to sustainable finance and climate-related disclosures. AREF's Public Policy Committee, ESG & Impact Investing Committee and ESG Disclosures Working Group monitor how this work will affect real estate funds and, where appropriate, respond to related consultations. If you would like to contribute to this work please contact Jacqui Bungay (jbungay@aref.org.uk).
ESG Metrics for Real Estate
On 12 January 2024, a Working Group, with members from AREF and other real-estate related associations, updated proposals on ESG metrics for real estate. More details can be found here.
ESAs - Greenwashing Call for Evidence
On 15 November 2022, the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published a Call for Evidence on greenwashing to gather input from stakeholders on how to understand the key features, drivers and risks associated with greenwashing and to collect examples of potential greenwashing practices. More details can be found here. The deadline for submissions is 10 January 2023. Contributions will feed into the ESAs’ findings for their progress reports due in May 2023, and final reports due in May 2024.
ESMA - Sustainable Finance Implementation Timeline
In July 2023, ESMA published an updated Sustainable Finance Implementation Timeline for SFDR, TR, CSRD, MiFID, IDD, UCITS and AIFMD from 2021 to 2028.
ESMA - Guidelines on funds’ names using ESG or sustainability-related terms
On 18 November 2022, ESMA published a consultation regarding Guidelines on funds’ names using ESG or sustainability-related terms. The deadline for responses is 20 February 2023.
EU’s SFDR
You can find the latest position on the EU’s SFDR here
FCA – Climate-Related Disclosures
The FCA are looking to enhance climate-related disclosures. More details on this can be found here.
FCA - Sustainability Disclosure Requirements (SDR) and investment labelling
In April 2024, the FCA published Finalised non-handbook guidance on the Anti-Greenwashing Rule (FG24/3) and a consultation (CP24/8) proposing to extend the SDR and investment labels regime to portfolio management services. This followed on from the FCA's Policy Statement (PS23/16) on Sustainability Disclosure Requirements (SDR) and investment labelling published in November 2023. More details can be found here.
FinDatEx - European ESG Template (EET)
The latest version of the European ESG Template (EET) can be found on the FinDatEx website. This is a stand-alone, cross-sectoral template for the exchange of ESG-related data.
Education session
The FinDatEx coordinators are holding an education session on Friday 22 September 2023 to explain the rationale behind and the usage of the data fields in the European ESG Template (EET). The session also aims to gather further feedback on the uptake and use of the EET among market participants and the provision of pre-contractual standalone documentation.
There is no need to register in advance. Please click here to join the meeting on Friday 22 September at 08:00 (UK time). The session is due to last for two hours.
Meeting ID: 368 696 048 370
Passcode: TFzfvt
ISOCO - Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management
In November 2021 IOSCO published its Recommendations on Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management.
In November 2022, they have followed this up with a Call for Action for all voluntary standard setting bodies and industry associations operating in financial markets to promote good practices among their members to counter the risk of greenwashing1 related to asset managers and ESG rating and data providers.
ISSB - Sustainability & Climate-Related Disclosures
In June 2023, the International Sustainability Standards Board (ISSB) published the following standards:
- IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
- IFRS S2 Climate-related Disclosures
- IFRS S2 Industry-based Guidance on implementing Climate-related Disclosures (including Volume 36 Real Estate (pages 292-321) and Volume 37 Real Estate Services (pages 322- 326))
The FCA have stated that they will be using the ISSB standards as a basis for their own climate-related disclosures and sustainability disclosure requirements. Also, in July 2023, IOSCO endorsed IFRS S1 and S2.
Occupational Pension Schemes - Climate Change Governance and Reporting
In October 2021, the Department for Work and Pensions (DWP) published an open consultation on Climate and Investment reporting: setting expectations and empowering savers. Click here for more details.
UK Green Finance Strategy
In March 2023 HM Treasury, the Department for Energy Security and Net Zero (DESNZ), and the Department for Environment, Food & Rural Affairs (DEFRA) jointly published the UK Government's revised Green Finance Strategy.
The Government confirm that they will continue to support the work of the International Sustainability Standards Board (ISSB) and will set up a framework to assess these standards for their suitability for adoption in the UK as soon as the final standards are published.
Related Articles
In November 2021 Oliver Light, Carbon Intelligence and Member of the ESG & Social Impact Committee and Melville Rodrigues, Apex and Member of the Public Policy Committee, suggested solutions to be prioritised by fund managers and regulators in relation to ESG and climate-related disclosures in an article in IPE. Click here to view this article in IPE.
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