Global Trustee and Fiduciary Services Bite-Sized Issue 10 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 10 | 2023 8 QUICK LINKS CBDC DIVERSITY & INCLUSION FINTECH FUND LIQUIDITY OPERATIONAL RESILIENCE SUSTAINABLEFINANCE/ESG ASIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM California Passes Landmark Climate Disclosure Legislation On 12 September 2023, California’s state legislature passed two new bills: Senate Bill No. 253, Climate Corporate Data Accountability Act and Senate Bill No. 261, Greenhouse Gases: Climate- Related Financial Risk. The new legislation will require certain large public and private companies that conduct business in California to make public disclosures regarding their Scope 1, Scope 2 and Scope 3 greenhouse gas (“GHG”) emissions and their climate-related financial risks. These bills will become law, effective from 14 October 2023, unless the governor of California signs the bills at an earlier date or vetoes the bills. Link to Climate Corporate Data Accountability Act here Link to Greenhouse Gases: Climate-related Financial Risk here Taskforce on Nature-related Financial Disclosures Publishes Final Recommendations On 18 September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published its final recommendations. The recommendations include a set of general requirements for nature- related disclosures and a set of recommended disclosures structured around the four pillars of governance, strategy, risk and impact management, and metrics and targets. Key focus areas of the recommendations include: • The importance of nature’s health and resilience for societies, economies, business, and finance; • An introduction to understanding nature and business; • Outline of the TNFD disclosure framework; • Conceptual foundations and general requirements for nature-related disclosures; and • Overview of metrics architecture and recommended set of disclosure metrics. Link to Final Recommendations here European Commission Launches Consultations on SFDR On 14 September 2023, the European Commission (EC) launched a targeted consultation and a public consultation to seek feedback on the Sustainable Finance Disclosure Regulation (SFDR). The EC is interested in understanding how the SFDR has been implemented and any potential shortcomings, including in its interaction with the other parts of the European framework for sustainable finance, and in exploring possible options to improve the framework. The targeted consultation will gather input from public bodies and stakeholders who are more familiar with the SFDR and the European Union’s sustainable finance framework as a whole, including financial market participants, investors, NGOs, relevant public authorities, national regulators, and others that are subject directly or indirectly to the provisions of the SFDR and have a more in-depth knowledge of SFDR. The public consultation is addressed to a broad range of stakeholders including individuals and organisations including interest groups, member associations and representative bodies, that have a more general knowledge of SFDR. The consultations will be accompanied by a series of workshops, beginning on 10 October 2023. Comments on both consultations are due by 15 December 2023. Link to Targeted Consultation here Link to Public Consultation here