Global Trustee and Fiduciary Services Bite-Sized Issue 1 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 1 | 2024 13 QUICK LINKS BENCHMARKS REGULATION CSDR CYBERSECURITY DEFI DIGITALISATION DORA ELTIF FSB FUND LIQUIDITY MONEYMARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG ASIA EUROPE IRELAND NORTH AMERICA UNITED KINGDOM SEC’s New Rulemaking Agenda Pushes Adoption of Climate Change Disclosure Rules to 2024 On 6 December 2023, the U.S. Securities and Exchange Commission (SEC) pushed back adoption of its climate change disclosure rules to spring 2024. Key dates related to expected adoptions, and when (re)proposals are expected, can be found in the SEC’s regulatory agenda. The agenda is not binding on the SEC but sets out the rulemakings that the SEC expects to propose or adopt in the near term. Link to Amended SEC Agenda here ESAs Put Forward Amendments to Sustainability Disclosures for the Financial Sector On 4 December 2023, the three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published their Final Report amending the draft Regulatory Technical Standards (RTS) to the Delegated Regulation supplementing the Sustainable Finance Disclosure Regulation (SFDR). ESMA describes that the ESAs have proposed adding new social indicators and streamlining the framework for the disclosure of principal adverse impacts of investment decisions on the environment and society. ESMA further outlines that the ESAs also suggested new product disclosures regarding “greenhouse gas emissions reduction” targets. Additionally, ESMA outlines that the ESAs proposed further technical revisions to the SFDR Delegated Regulation: • Improvements to the disclosures on how sustainable investments “Do No Significant Harm” (DNSH) to the environment and society; • Simplification of the pre-contractual and periodic disclosure templates for financial products; and • Other technical adjustments concerning, among others, the treatment of derivatives, the calculation of sustainable investments, and provisions for financial products with underlying investment options. In terms of next steps, ESMA outlines that the European Commission will study the draft RTS and decide whether to endorse themwithin three months. These draft RTS would be applied independently of the comprehensive assessment of SFDR announced by the European Commission in September 2023 and before changes resulting from that assessment would be introduced. Link to Final Report here Link to Comprehensive Assessment of SFDR here MAS Launches World’s First Multi-Sector Transition Taxonomy On 3 December 2023, the Monetary Authority of Singapore (MAS) launched the Singapore-Asia Taxonomy for Sustainable Finance (Singapore-Asia Taxonomy), which is described as setting out detailed thresholds and criteria for defining green and transition activities that contribute to climate change mitigation across eight focus sectors being: Energy, Real Estate, Transportation, Agriculture and Forestry/Land Use, Industrial, Information and Communication Technology, Waste/Circular Economy, Carbon Capture and Sequestration. MAS advises that the Singapore-Asia Taxonomy is not designed to be an exhaustive or mandatory list of activities or projects for investment but has a number of purposes (e.g., provide clarity via common language for financiers, issuers, policymakers and regulators, to help translate Paris Agreement commitments, to incentivise companies and avoid reputational risks etc). It also includes a list of economic activities and projects that are classified as “green”, in other words. environmentally sustainable, “amber” meaning transition or “red” meaning ineligible, on the basis of their contribution to at least one of the Taxonomy’s five environmental objectives, whilst at the same time not causing any significant harm to the other four. The Singapore-Asia Taxonomy also outlines five main environmental objectives that are aligned with the EU Taxonomy – that is – Climate change mitigation; Climate change adaptation; Protect healthy ecosystems and biodiversity; Promote resource resilience and circular economy; and Pollution prevention and control.