The United Nations Conference on Trade and Development (UNCTAD) estimates that meeting the Sustainable Development Goals (SDGs) by 2030 will require $5trn to $7trn per year from private capital. Markets across the globe are responding to this demand by directing capital flows in pursuit of sustainable outcomes. ESG risk is now part of the credit analysis of lenders and counterparties.
Firms with ESG, sustainable and impact related financial products, as well as those which integrate ESG, are often subject to a greater degree of ESG related regulatory obligations and scrutiny to assist in the prevention of greenwashing and sustainability washing. We understand navigating the suite of ever changing universe of ESG regulations is a significant challenge, for an up to date picture read about the latest developments or contact Lora Froud.
Companies and funds are considering what their organisation is seeking to achieve and what problems they are aiming to solve by setting a purpose and providing a clear direction to their strategy.
Our team can support in a number of areas, including:
- fund structuring, fund raising and fund deployment of impact, natural capital and ESG related funds;
- regulatory advice, including under the EU’s Sustainable Finance Disclosure Regulation (SFDR), the Taxonomy Regulation, the FCA’s ESG Sourcebook and the requirements of the Taskforce on Climate-related Financial Disclosures. This advice includes the associated disclosure and reporting requirements;
- the implications of the anticipated FCA’s Sustainability Disclosure Requirements (SDR) and investment labels;
- the launch of impact funds seeking to support climate change mitigation and/or adaptation, eliminate waste and maximise resource efficiency, restore nature and biodiversity loss and optimise the health and wellbeing of people;
- supporting investors in understanding the positive and negative outcomes from their investments and related activities, and shaping those outcomes in line with the SDGs;
- sustainability linked loans, bonds and green loans;
- ESG linked debt products, ESG linked derivative instruments, ESG linked renumeration, ESG linked sweet equity and other ESG related structuring in financial products or otherwise;
- B-Corp accreditation; and
- carbon credit generation and trading, including carbon and biodiversity credit trading funds.