Global Trustee and Fiduciary Services Bite-Sized Issue 8 2024

15 QUICK LINKS AIFMD CBDC CRYPTOASSETS CSDR FINTECH FSB FUND LIQUIDITY MAR MIFID II/MIFIR OPERATIONAL RESILIENCE REMUNERATION SUSTAINABLE FINANCE/ ESG UCITS ASIA PACIFIC EUROPE IRELAND NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2024 NGFS Publishes Two Complementary Reports on Nature-related Risks On 2 July 2024, the Network for Greening the Financial System (NGFS) published two complementary reports on nature-related risks. The first report is the final version of the Conceptual Framework for nature-related financial risks, which aims to guide policies and action by central banks and financial supervisors. The report includes two illustrative cases, which demonstrate how this framework can be applied in practice. The second report outlines the key emerging trends related to nature-related litigation, including cases concerning biodiversity loss, deforestation, ocean degradation, carbon sinks and plastic pollution, and explores the potential relevance for central banks, supervisors, and the financial system. In the report, the NGFS argues that nature-related legal actions will likely evolve and grow, taking inspiration from successful climate-related litigation cases, and benefiting from an increasing awareness of the nature crisis. The NGFS encourages central banks, supervisors, and financial institutions to closely monitor developments in nature-related litigation. The two reports are complementary: the Conceptual Framework outlines the broad framework for nature-related risks, the second report aims to raise awareness more specifically about nature- related litigation risk. Link to the First Report here Link to the Second Report here Report on the Monitoring of Climate-related Risk to Financial Stability On 1 July 2024, the European Commission published a report on the monitoring of climate-related risk to financial stability in the European Union (EU). The report takes stock of analytical work and policy responses carried out by the EU so far and is part of an ongoing learning process by EU regulators, supervisors, and industry. The report covers a number of matters, including: • The current state-of-play of climate-related financial risk analysis in the EU; • The key results of this analysis (i.e., key climate-related financial stability risks identified so far) as well as limitations to interpreting these results; • The possible policy responses; and • The policy outlook. The Annex to the report provides more detail on EU policy initiatives that tackle pockets of risk. Link to the Report here UCITS NewQ&As Available On 12 July 2024, the European Securities and Markets Authority (ESMA) updated the following Questions and Answers: • ESMA_QA_601: Derogation for newly authorised UCITS Link to Q&As here