Global Trustee and Fiduciary Services Bite-Sized Issue 7 2024

9 QUICK LINKS CBDC CYBERSECURITY DIVERSITY DORA FINTECH IOSCO MICA OPERATIONAL RESILIENCE PRIIPS RETAIL INVESTMENT PACKAGE SUSTAINABLE FINANCE/ ESG T+1 TOKENISATION ASIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 7 | 2024 ISSB Delivers Further Harmonisation of the Sustainability Disclosure Landscape as it Embarks on NewWork Plan On 24 June 2024, the International Financial Reporting Standards (IFRS) Foundation announced the International Sustainability Standards Board (ISSB) new two-year work plan and published a Feedback Statement on that work plan. The ISSB states it will deliver further harmonisation and consolidation of the disclosure landscape in response to market demand. Topics raised by the IFRS Foundation include harmonisation of disclosures about transition plans, measuring greenhouse gas emissions effectively etc. In addition, the ISSB stated that it will look at how it might build from relevant initiatives to meet the information needs of investors as it embarks on a research project on biodiversity, ecosystems, and ecosystem services. Link to Feedback Statement here Australian Government Publishes its Sustainable Finance Roadmap On 19 June 2024, the Australian Government (the Government) published its Sustainable Finance Roadmap (the Roadmap). In the foreword to the Roadmap, the Government explains that, so far, its primary focus has been on the introduction of mandatory disclosure of climate -related financial risks and opportunities, with legislation now before the Parliament. With the publication of the Roadmap, the Government is nowmoving to delivering the next set of sustainable finance reforms, which includes funding the completion of Australia’s preliminary sustainable finance taxonomy, developing a labelling regime for investment products marketed as sustainable and supporting credible business transition planning through best practice guidance. The Government also explains in the foreword that it has decided to take a ‘climate first, not only’ approach to sustainable finance, whilst also responding to nature-related financial risks and opportunities and integrating these considerations into its Roadmap. The Government’s Roadmap introduces three pillars, supported by 10 priority actions: • Pillar 1: Improve transparency on climate and sustainability (supported by four priorities). • Pillar 2: Financial system capabilities (supported by four priorities). • Pillar 3: Australian Government leadership and engagement (supported by two priorities) The Government says it will continue to widely engage with stakeholders to inform ongoing policy development. Link to Roadmap here ESAs Propose Improvements to the Sustainable Finance Disclosure Regulation On 18 June 2024, the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published a Joint Opinion on the assessment of the Sustainable Finance Disclosure Regulation (SFDR). The ESAs state they are calling for a coherent sustainable finance framework that caters for both the green transition and enhanced consumer protection, taking into account the lessons learned from the functioning of the SFDR. The ESAs say their focus is on ways to introduce simple and clear categories for financial products. The simplifications consist of two voluntary product categories, “sustainable” and “transition”, that financial market participants should use to ensure consumers understand the purpose of the products. The ESAs say that the rules for the categories should have a clear objective and criteria to reduce greenwashing risks. The ESAs recommend that the European Commission consider the introduction of a sustainability indicator that would grade financial products such as investment funds, life insurance and pension products. In addition, the ESAs Joint Opinion also covers the following areas: • Appropriate disclosures for products outside the two categories to reduce greenwashing; • Improvements to the definition of sustainable investments;