Sustainable finance

Sustainable finance

Overview

The sustainability agenda is resulting in a wave of new regulation for alternative asset managers, including pension funds and lenders as well as the wider business community, a trend which looks set to continue in the coming years. Tackling climate change remains a key priority for policy makers globally, keen to facilitate the flow of private capital needed to fund the level of investment implied by their ambitious climate targets. At the same time, asset managers are responding proactively to expectations that they will deliver positive climate impact and social value alongside outstanding financial performance. 

Implementation of the EU's sustainable finance action plan has already begun, introducing potentially game-changing reforms for any firm seeking to invest in the EU. The UK meanwhile is developing its post-Brexit ESG regime, announcing that it will be the first jurisdiction in the world to make reporting under the Taskforce on Climate-related Financial Disclosures mandatory, affecting almost all UK corporates and asset managers in the coming years. The UK is expected to implement its own, perhaps more principles-based, version of the EU's Sustainable Finance Disclosure Regulation, alongside a UK-specific version of the EU's Taxonomy, designed to support the transition from a risk-based to a performance-based approach to sustainable investment. Across the Atlantic, President Biden's far-reaching $2tn Climate Plan is also likely to be a catalyst for legislative action in the US. International convergence on ESG regulation is on the agenda, particularly as regards performance metrics, but harmonised standards remain some way off, increasing the compliance burden.

Travers Smith's market-leading, multi-disciplinary team supports financial institutions, asset managers, funds, pension scheme trustees, lenders, fintechs and corporates in staying ahead of the regulatory curve as well as exploiting sustainable finance opportunities across all sectors. We also continue to influence the development of policy and the ESG regulatory framework through our engagement with government, regulators, and trade associations, notably Invest Europe, the British Private Equity & Venture Capital Association (BVCA), the Alternative Investment Management Association (AIMA) and the Impact Investing Institute. Our sustainable finance offering encompasses:

  • Sustainable finance regulation across all sectors
  • ESG reporting
  • Horizon scanning and public policy
  • Investment strategy and shareholder engagement
  • Investment and other ESG governance and risk management structures for pension fund trustees
  • Compliance review of pension fund policies and strategic objective-setting for investment consultants
  • Sectoral rules
  • ESG-linked credit and fund finance facilities
  • ESG-linked incentivisation arrangements
  • Green and sustainable bonds
  • Derivatives and structured products and other innovative instruments
  • Carbon/emissions trading and offsetting
  • Derivatives trading
  • Investment in green buildings

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Meet the team

Read Aisling Arthur's Profile
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