ESG and climate disclosure
ESG and climate disclosure requirements for Financial & Capital Markets firms are no longer optional or aspirational: the U.S. Securities and Exchange Commission's climate disclosure rule, finalized in March 2024, requires public companies and fund managers to report Scope 1 and Scope 2 emissions, material climate risks, and board oversight structures in registration statements and annual reports. The European Securities and Markets Authority is simultaneously enforcing the Corporate Sustainability Reporting Directive framework across EU-listed financial institutions, while the Financial Conduct Authority in the UK is pressing asset managers on TCFD-aligned product-level disclosures. Compliance teams are currently stress-testing their data collection pipelines and third-party vendor agreements against all three regimes at once.
Watch
- SEC climate rule phased compliance deadlines: large accelerated filers move first
- ESMA's CSRD supervisory convergence guidance, expected mid-2025
- Greenwashing enforcement actions against fund-level ESG claims, FCA and SEC both active
- Scope 3 emissions: still contested in the SEC rule, watch for litigation outcomes
- APAC divergence: Hong Kong SFC and Japan FSA proposing separate ISSB-aligned timelines
Recent material activity in Financial & Capital Markets
Active monitoring in place across Financial & Capital Markets. Material developments related to esg and climate disclosure will appear here as they are published.