<p>Filter Knowledge</p>

A regular briefing for the alternative asset management industry. 

The draft Regulatory Technical Standards (RTS) to supplement the Sustainable Finance Disclosure Regulation (SFDR) have been issued by the European Supervisory Authorities (ESAs) and are available here .

Our annual briefing highlighting the key 2020 legal developments which impact the funds' industry and previews what can be expected in 2021.

In late January 2021, the Court of Appeal of the Hague considered in some detail whether to hold Royal Dutch Shell (UK plc) responsible for the actions of its indirect subsidiary, Shell Petroleum Development Company of Nigeria, in a long-running litigation relating to a significant oil leak in Nigeria.

The evidence outlined by the UK Government includes allegations of forced sterilisation, extra-judicial detention and forced labour. The proposals are intended to "send a clear message that these violations of human rights are unacceptable, and to safeguard UK businesses and public bodies from any involvement or linkage with them".

A regular briefing for the alternative asset management industry. 

Despite the significant body of scientific research indicating that we are reaching a tipping point in the global fight against the damaging effects of climate change, global carbon output continues to climb. However, there is growing international consensus around the need for urgent action to reverse the effects of climate change.

The parent companies of global organisations are increasingly facing attempts to hold them to account before the English Courts for human rights, environmental or other violations of ethical business practices allegedly committed by their overseas subsidiaries. These claims often take the form of mass tort group actions, carrying substantial potential financial liability.

The Australian superannuation fund Rest has agreed a settlement in a landmark case, acknowledging that "climate change could lead to catastrophic economic and social consequences and is an important concern of Rest's members", and that it is "important to actively identify and manage" that risk.

In December 2020, the BBC reported that black workers at Lloyds Bank earn a fifth less than other colleagues. According to the bank, the discrepancy is because they "are disproportionately under-represented at senior levels".

Taylor v Jaguar Landrover

The employee in this case had worked as an engineer for the employer for many years. Having previously identified as male, from 2017 onwards, the employee identified as gender fluid and non-binary, and generally dressed in female clothing.

"You don't need to have 20/20 vision to see that the year ahead will be challenging…"

The Department for Business, Energy and Industrial Strategy ("BEIS") has published its Final Report: Frameworks for standards for non-financial reporting ("NFR") (the "Report") which sets out the preferences of key U.K. stakeholders around NFR standards. Whilst established reporting standards and accounting principles for financial reporting are available to businesses, the Report notes there is no equivalent for NFR despite there being a number of key drivers for the publication of this information (set out below) and so, although the purpose of this research is not to endorse a specific framework, BEIS hopes that it may support future studies exploring potential changes to policy in this area.

The Investment Association has published a Climate Change Position Paper (the "Paper") which represents the stance of the investment management industry on climate change. The Paper sets out the industry's commitment to climate action, including working with the UK Government to accelerate change and bolster the UK's position as a global leader in sustainable finance. 

Derivatives & Structured Products Partner, Jonathan Gilmour, and Pensions Partner, Andy Lewis, have jointly contributed to the recently published International Comparative Legal Guide on Environmental, Social & Governance Law 2021, with a chapter on the economic rationale behind ESG investment and the key challenges and opportunities which flow from ESG-related pensions law and regulation

This series of bitesize videos will be a chance to hear from various members of the Real Estate team on need-to-know updates and topical issues in the sector.

A regular briefing for the alternative asset management industry.