Global Trustee and Fiduciary Services Bite-Sized Issue 10 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 10 | 2023 9 QUICK LINKS CBDC DIVERSITY & INCLUSION FINTECH FUND LIQUIDITY OPERATIONAL RESILIENCE SUSTAINABLEFINANCE/ESG ASIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM PRI: Report on Climate Data and Net Zero On 4 September 2023, the United Nations Principles for Responsible Investment (PRI) published a report which looks at closing the gap on investors’ data needs with respect to climate change and net zero. The report contains three overarching recommendations that help to explain the disconnect between investors’ needs and what the market currently provides: • Improve corporate disclosure – as corporate data underpins the majority of data products that are currently available, improving corporate disclosure is a prerequisite to improving the coverage and quality of data products. • Improve coverage and quality of products – data providers need to improve coverage, data provider transparency, forward-looking analysis of climate data, and portfolio-level metrics and methodologies. • Facilitate data comparability – wider consensus-building activities are needed to establish common definitions and agreement on sector and geographic pathways. Over time, these will feed back into the development of data products. Link to Report here GFI (GTAG): UK Taxonomy Considerations in the Short and Medium Term On 1 September 2023, the Green Finance Institute (GFI), which chairs the Green Technical Advisory Group (GTAG), published a report, on the scope, coverage and reporting considerations for developing a taxonomy adapted to the UK’s needs in the short and medium term. The GTAG’s position is that the UK Government should prioritise delivering a credible, robust and usable taxonomy. In the GTAG’s view, decisions on extending the taxonomy to cover transition or harmful activities should be reserved for later. Link to Report here GFI (GTAG): Implementing an Effective Reporting Regime for the UK Green Taxonomy On 1 September 2023 GTAG published a report entitled Getting KPIs Right: Implementing an effective reporting regime for the UK Green Taxonomy. GTAG’s position is that corporates should report ahead of financial institutions, as financial institutions are dependent on information disclosed by corporate clients and investee companies for their own reporting. More generally, the paper focuses on the key performance indicators (KPIs) that should be used in taxonomy reporting. Having identified challenges with EU taxonomy reporting KPIs for both financial and non-financial companies, GTAGmakes a number of recommendations for non-financial companies, credit institutions and investors. The report then proceeds to cover: • The role of disclosures and their interactions with the taxonomy; • Design considerations (including structural considerations and EU reporting challenges); and • The rationale for GTAG’s recommendations. Link to Report here