Global Trustee and Fiduciary Services News and Views Issue 50

Global Trustee and Fiduciary Services News & Views | Issue 50 | 2018 31 1 António Guterres Secretary-General, United Nations, The Sustainable Development Goals Report 2017 at https://unstats.un.org/sdgs/files/report/2017/ TheSustainableDevelopmentGoalsReport2017.pdf. Link here . 2 http://europa.eu/rapid/press-release_IP-18-1404_en.htm. Link here . 3 https://ec.europa.eu/info/publications/180524-proposal- sustainable-finance_en. Link here . 4 Institutional investors, asset managers and advisers. 5 Known as financial market participants. 6 https://ec.europa.eu/info/law/better-regulation/initiatives/ ares-2017-5524115_en#pe-2018-3336. Link here . 7 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=C ELEX:32009L0065&from=EN. Link here . 8 https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ : L:2011:174:0001:0073:EN:PDF. Link here . 9 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=C ELEX:32014L0065&from=EN. Link here . 10 Defined in Article 4(2) of Regulation (EU) No 1286/2014. 11 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=C ELEX:32013R0345&from=en. Link here . 12 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=C ELEX:32013R0346&from=EN. Link here . 13 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=C ELEX:32009L0138&from=EN. Link here . 14 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=C ELEX:32016L0097&from=EN. Link here . 15 Individual portfolio management and advice. 16 https://ec.europa.eu/info/law/better-regulation/initiatives/ ares-2017-5524115_en#pe-2018-3333. Link here . 17 Proposal for a Regulation amending the Benchmarks Regulation. 18 http://ec.europa.eu/transparency/regdoc/rep/1/2018/EN/ COM-2018-355-F1-EN-ANNEX-1-PART-1.PDF. Link here . 19 https://ec.europa.eu/info/law/better-regulation/initiatives/ ares-2017-5524115_en#isc-2018-03036. Link here . 20 https://ec.europa.eu/info/law/better-regulation/initiatives/ ares-2017-5524115_en#isc-2018-03038. Link here . 21 http://www.europarl.europa.eu/news/en/press- room/20180529IPR04517/meps-back-resolution-on- sustainable-finance. Link here . 22 https://eiopa.europa.eu/Publications/Requests%20for%20 advice/20180724-Letter%20to%20EIOPA-ESMA-St.Fin.pdf. Link here . 23 http://www.frenchsif.org/isr-esg/wp-content/uploads/ Understanding_article173-French_SIF_Handbook.pdf. Link here . 24 https://www.cleanenergywire.org/news/energy-transition- both-open-heart-surgery-and-business-model. Link here . 25 https://shareaction.org/wp-content/uploads/2018/03/ EUPolicy-NGO-SustainableFinanceActionPlan.pdf. Link here . 26 https://www.gov.uk/government/news/uk-government-launches- plan-to-accelerate-growth-of-green-finance. Link here . 27 https://www.globalelr.com/2018/07/green-finance-institute- to-launch-in-london/#page1. Link here . 28 https://www.ipe.com/countries/netherlands/industry- body-puts-stocklending-at-heart-of-dutch-stewardship- code/10025562.article. Link here . 29 http://www.vbdo.nl/en/. 30 https://www.sustainablenation.ie/sustainable-finance/. 31 https://www.finance.gov.ie/what-we-do/international- financial-services/. Link here . 32 https://www.finance.gov.ie/wp-content/uploads/2018/ 01/180130-IFS2020-Action-Plan-2018.pdf. Link here . 33 https://www.gov.uk/government/consultations/pension-trustees- clarifying-and-strengthening-investment-duties. Link here . 34 https://assets.publishing.service.gov.uk/government/ uploads/system/uploads/attachment_data/file/717375/ pension-funds-and-social-investment-final-response-to -law-commission-report.pdf. Link here . 35 http://igniteseurope.com/c/2013653/235933/royal_london_ offers_pension_customers_free_switch_sustainable_funds? referrer_module=emailMorningNews &module_order=5&code= WVcxaGJtUmhMbXBoZVc1b ExtaGhiR1ZBWTJsMGFTNWpiMjBzS URJeU5UWXhPRElzSURFME56VTVNVGt4TVRrPQ. Link here . 36 https://eiopa.europa.eu/Pages/News/EIOPA-joins-the- Sustainable-Insurance-Forum-.aspx. Link here . 37 https://www.fnlondon.com/articles/blackrocks-fink- urges-companies-to-engage-with-activists- 20180116?mod=article_inline. Link here . 38 http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-/ / EP//NONSGML+COMPARL+PE-626.716+01+DOC+PDF+V0// EN&language=EN. Link here . 39 http://mneguidelines.oecd.org/guidelines/. 40 https://www.ipe.com/news/asset-managers/asset-management- roundup-survey-predicts-esg-related-etf-boom /www.ipe.com/ news/asset-managers/asset-management-roundup-survey- predicts-esg-related-etf-boom/10025470.fullarticle. Link here . 41 http://www.ifswf.org/sites/default/files/One_Planet_ Sovereign_Wealth_Fund_Framework.pdf. Link here . 42 ECON = Economic and Monetary Affairs Committee. these new proposals indicate that consideration of ESG factors will soon become a pre-requisite for European Member State fiduciaries. The 24 May 2018 Commission proposals will remain in focus, with the possibility of even further legislative changes to follow. Members of the European Parliament’s ECON committee have until 19 September to table their own amendments to the Commission proposals. 42 The MEPs will then negotiate on the committee’s position, with a vote currently scheduled to take place on 5 November. The EU is now less than a year away from the next elections to its Parliament, so it will have to seize the moment and continue the momentum of the CMU Action Plan overall, which includes its legislative proposals under the CMU Sustainability Action Plan. How the rest of the world and the financial services industry react, predominantly remains unanswered. If you see the benefits of adopting a pro-green approach in the investment space, then continue to watch how the legislative framework evolves, and, as a result, if creating wealth and wellbeing remains a gradual evolution or transitions to a revolution. Amanda Hale Head of Regulatory Services Global Trustee and Fiduciary Services Citi