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More than

396 extracts

from 38 regulatory texts

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For investors to be able to assess the quality and configuration of an ESG integration approach, asset managers should publish the following information: 1. Name of the sustainable investment approach. 2. Elements in the financial analysis influenced by the inclusion of sustainability factors (such as the assessment of the company’s competitive position, estimate of future cash flows, discount factor, etc.). 3. The extent to which the inclusion of ESG factors is binding for analysts (e.g. fixed element of each factsheet, part of the discussion when making any purchase decision). 4. Type of information available to the analysts (external ratings, databases, etc.).
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For investors to be able to assess the quality and configuration of a ratings-based approach, asset managers should also publish the following information: 1. Name of the sustainable investment approach 2. Rating, metric or index the approach is based upon, as well as a description in the case of a proprietary rating. 3. Dimensions (i.e. ESG criteria) that the applied rating or alignment method takes into consideration. 4. Essential minimum threshold , i.e. the percentage of the portfolio that is still investable (for best-in-class). 5. Average sustainability rating or degree of alignment of the portfolio relative to the benchmark (for positive screening/positive tilt/alignment). 6. Exclusive use of external research or are internal resources available as well? For best-in-class or positive screening, the ratings/metrics used must consider all three ESG dimensions of sustainability and may not limit itself to just one or two dimensions.
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For the description “ESG integration” to be justified, it must be mandatory for analysts to actually consider ESG information in their analysis. If suitable information is available but is only used on a voluntary basis, claiming the use of an ESG integration approach is unwarranted. ESG factors can be made binding by integrating them into a shared factsheet or including them on the agenda of investment meetings.
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For an investor to aspire to active ownership, an ESG policy should be in place for the exercising of voting rights and be published on the website. This should not concern itself exclusively with matters of good governance, but also include statements about priorities relating to environmental or social themes. In addition, the votes – at least for a specific, defined market segment – should be exercised for a significant proportion of the portfolio and voting details reported on an annual basis.
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For investors to be able to assess the quality and configuration of an active engagement process, asset managers should publish the following information: 1. Name of the sustainable investment approach 2. Engagement policy (incl. goals and most important engagement themes) 3. Percentage of the portfolio for which engagement applies 4. Number of interactions with companies 5. Proportion of demands where progress has been made
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For an investor to aspire to active engagement, a suitable engagement policy should be in place and be published on the website. This could also be the policy of a relevant service provider. In addition, annual information should be published on the website on the engagement priorities, how many dialogues were held and what progress was made.
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In relation to the management of sustainability-related collective investment schemes, FINMA’s focus in preventing and combating greenwashing is on the following areas: i. sustainability-related information at the fund level (figure 2 below) and ii. suitable organisational structure at the institutional level for managing such products (figure 3 below).
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Attributes such as “sustainable”, “green” or “ESG” can appeal to investors for whom sustainability characteristics are an essential criterion when making an investment decision. In particular, if a Swiss collective investment scheme is described in such a way or if a link to sustainability is established via another means, FINMA will pay particular attention to the information provided about the advertised sustainability characteristics when approving and supervising it. It will ensure that these are appropriately disclosed and will check that investors are not deceived regarding sustainable characteristics. The fund documents for Swiss collective investment schemes must therefore contain the information required for investors to make an informed investment decision. In view of the large number of possible sustainability strategies, thematic orientations and due to the lack of general definitions, classifications and measurement methods, establishing transparency for sustainability-related Swiss collective investment schemes poses a challenge, but is essential to protect investors. FINMA informed fund management companies about its expectations regarding the content of fund documents for sustainability-related Swiss collective investment schemes in February 2021.
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Retrospective sustainability reports should be published setting out clearly and transparently for investors to what extent a sustainability-related Swiss collective investment scheme has achieved its sustainability goals. To promote good practice and ensure that investors are adequately informed, FINMA therefore recommends that a high degree of transparency is applied in sustainability reporting for sustainability-related Swiss collective investment schemes.
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Institutions that manage collective investment schemes must be suitably organised. […] FINMA takes account of aspects such as the following when assessing whether it is suitably organised: • Investment decision process/investment controlling/risk management: Attention must be paid to integrating and observing sustainability-related considerations during the investment decision process. These should also be reviewed as part of independent monitoring of risks. • Specialist expertise and knowledge: It should be ensured that the requisite specialist expertise and the necessary knowledge in the area of sustainability is present not only within the body for governance, supervision and control, but also across the operational level as a whole. • Sustainability strategy: It should be ensured that the body for governance, supervision and control specifies the relevant strategy in relation to sustainability. • Sustainability-related data, tools and ratings: When selecting and using external sustainability-related data and analyses, tools and ratings, adequate assessment and monitoring of the data providers and validation of the corresponding information should be ensured. The adequacy of the organisational structure is dependent, in particular, on the sustainable strategy for the sustainability-related Swiss or foreign collective investment scheme being guaranteed and also on sustainability risks being captured as part of the risk management process, alongside the traditional investment risks.
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The advisory process (at the point of sale) can also pose greenwashing risks if sustainability-related financial products are offered. These risks should be limited by financial service providers, particularly in view of their potential civil liability. […] The FinSA does not include any specific duties that indicate how a client’s sustainability-specific preferences should be taken into account at the point of sale […]. In this context, the Guideline for the integration of ESG considerations into the advisory process for private clients published by the Swiss Bankers Association in June 2020 should be referred to […].
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Whilst institutions are, and should remain, responsible for setting their strategies, the impacts of ESG risks should be appropriately taken into account in order to ensure the resilience of business models over the short-, medium- and long-term time horizons.
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With regard to credit and counterparty risk, ESG risks may challenge institutions in all stages of the process, from granting to monitoring. Specifically, ESG risks can impact the main credit parameters
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Quantitative indicators can take the form of key performance indicators (KPIs), which capture both risk and opportunities, and allow for a comparison between portfolios. Nevertheless, beyond a static monitoring of their exposures, institutions should also focus on evaluating potential current and future impacts of ESG risks through scenario analysis. It might be less straightforward to translate social and governance risks into commonly agreed quantitative indicators and a more qualitative approach for these risks may be implemented in the first place.
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In order to reflect the ESG risks in the supervisory evaluation, the EBA sees the need to proportionately incorporate ESG factors and considerations into business model analysis, in particular with regard to the analysis of the business environment, the current business model, strategy, and the assessment of the viability and sustainability of the business model. Key aspects to be considered in this regard include (sub-)sectoral and geographic concentrations, the institution’s (potential lack of) reflection on the impact of a changing business environment, internal capacity building, relationships with stakeholders and projected profitability and losses under an ESG risk perspective.

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The regulation aims to provide information to end-investors about financial products’ investments in environmentally sustainable economic activities, providing them with comparable information to make informed investment choices; and establish a single regulation for sustainability information under the GDPR and the Taxonomy Regulation
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The regulation aims to provide information to end-investors about financial products’ investments in environmentally sustainable economic activities, providing them with comparable information to make informed investment choices; and establish a single regulation for sustainability information under the GDPR and the Taxonomy Regulation
Released by the OSFI (or BSIF in french), this paper focuses on risks arising from climate change that can affect the safety and soundness of federally regulated financial institutions (FRFIs) and federally regulated pension plans (FRPPs). Climate-related risks can affect theirs safety and soundness by driving financial, strategic and operational risks and by affecting a FRFI’s reputation. For FRFIs, OSFI agrees guidance on climate-related risks should be principles-based and consider the Canadian context as well as international developments and for FRPPs, OSFI will continue collaborating with the Canadian Association of Pension Supervisory Authorities to develop guidance on integrating ESG factors in pension investment decisions.
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Released by the OSFI (or BSIF in french), this paper focuses on risks arising from climate change that can affect the safety and soundness of federally regulated financial institutions (FRFIs) and federally regulated pension plans (FRPPs). Climate-related risks can affect theirs safety and soundness by driving financial, strategic and operational risks and by affecting a FRFI’s reputation. For FRFIs, OSFI agrees guidance on climate-related risks should be principles-based and consider the Canadian context as well as international developments and for FRPPs, OSFI will continue collaborating with the Canadian Association of Pension Supervisory Authorities to develop guidance on integrating ESG factors in pension investment decisions.
Ce document présente les attentes BCE en matière de gestion et de déclaration des risques liés au climat et à l’environnement dans le cadre prudentiel actuel, à destination des établissements de crédit. En particulier, le guide décrit les attentes relatives à l’articulation et l’intégration de ces risques aux modèles opérationnels et à la stratégie, à la gouvernance et à l’appétence pour le risque. Il précise également les attentes BCE de transparence de la communication des établissements sur ces risques.

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Ce document présente les attentes BCE en matière de gestion et de déclaration des risques liés au climat et à l’environnement dans le cadre prudentiel actuel, à destination des établissements de crédit. En particulier, le guide décrit les attentes relatives à l’articulation et l’intégration de ces risques aux modèles opérationnels et à la stratégie, à la gouvernance et à l’appétence pour le risque. Il précise également les attentes BCE de transparence de la communication des établissements sur ces risques.
The Superintendent of New York State Department of Financial Services, Linda A. Lacewell, published an industry letter entitled “Climate Change and Financial Risk” to all the CEOs and equivalent leaders of regulated financial institutions. In this letter, the superintendent addresses the following topics: (i) The Severity of Climate Change (ii) Risks of Climate Change and Impact on Regulated Organizations (iii) Risks of Climate Change and Impact on Regulated Non-Depositories (iv) Risk Management (v) Global Climate-Related Supervision and (vi) DFS Expectations
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The Superintendent of New York State Department of Financial Services, Linda A. Lacewell, published an industry letter entitled “Climate Change and Financial Risk” to all the CEOs and equivalent leaders of regulated financial institutions. In this letter, the superintendent addresses the following topics: (i) The Severity of Climate Change (ii) Risks of Climate Change and Impact on Regulated Organizations (iii) Risks of Climate Change and Impact on Regulated Non-Depositories (iv) Risk Management (v) Global Climate-Related Supervision and (vi) DFS Expectations
This regulation is intended to provide companies and investors across the EU with a common language for identifying the extent to which economic activities can be considered environmentally sustainable.

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This regulation is intended to provide companies and investors across the EU with a common language for identifying the extent to which economic activities can be considered environmentally sustainable.
The objective of this paper is to give an overview about the main beliefs of the Swiss asset management industry and to provide asset managers with an effective guide for the implementation of a sustainable asset management process including governance, risk management, investment policy and strategy. The recommendations describe the most important elements that are crucial for the successful implementation of a sustainable asset management process. They provide a general overview of how ESG factors should be implemented into the different elements of an investment process for it to be considered sustainable. This paper does not take the form of binding SFAMA Guidelines.
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The objective of this paper is to give an overview about the main beliefs of the Swiss asset management industry and to provide asset managers with an effective guide for the implementation of a sustainable asset management process including governance, risk management, investment policy and strategy. The recommendations describe the most important elements that are crucial for the successful implementation of a sustainable asset management process. They provide a general overview of how ESG factors should be implemented into the different elements of an investment process for it to be considered sustainable. This paper does not take the form of binding SFAMA Guidelines.
These guidelines provide a framework on how financial service providers can successively integrate ESG considerations into the advisory process for private clients. The guidelines are essentially principles that can be applied in the context of the specific advisory processes of financial service providers. They are not legally binding and promote ESG considerations in the market, recognizing that individual institutions are on varying paths in fulfilling these recommendations.
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These guidelines provide a framework on how financial service providers can successively integrate ESG considerations into the advisory process for private clients. The guidelines are essentially principles that can be applied in the context of the specific advisory processes of financial service providers. They are not legally binding and promote ESG considerations in the market, recognizing that individual institutions are on varying paths in fulfilling these recommendations.
The Hong Kong Monetary Authority (HKMA) authored the “White Paper on Green and Sustainable Banking” to assist Authorized Institutions (AIs) prepare for the challenges presented by the physical and transition impacts of climate change. Segmented into four sections, this paper addresses the following topics: (i) sustainability and climate change issues, (ii) risks and opportunities that banks in Hong Kong face as a result of climate change, (iii) HKMA’s three-phased approach to promoting green and sustainable banking, (iv) HKMA’s initial views on future regulatory action.
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The Hong Kong Monetary Authority (HKMA) authored the “White Paper on Green and Sustainable Banking” to assist Authorized Institutions (AIs) prepare for the challenges presented by the physical and transition impacts of climate change. Segmented into four sections, this paper addresses the following topics: (i) sustainability and climate change issues, (ii) risks and opportunities that banks in Hong Kong face as a result of climate change, (iii) HKMA’s three-phased approach to promoting green and sustainable banking, (iv) HKMA’s initial views on future regulatory action.
Ce document s’inscrit dans la continuité des travaux de l’ACPR de 2016 sur les risques associés au changement climatique ; il vise à encourager la diffusion des bonnes pratiques au sein des établissements financiers, sur les aspects de stratégie à déployer en matière de risques climatiques, d’organisation interne des établissements face à ces risques, ainsi que les outils de gestion des risques et la communication associée.
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Ce document s’inscrit dans la continuité des travaux de l’ACPR de 2016 sur les risques associés au changement climatique ; il vise à encourager la diffusion des bonnes pratiques au sein des établissements financiers, sur les aspects de stratégie à déployer en matière de risques climatiques, d’organisation interne des établissements face à ces risques, ainsi que les outils de gestion des risques et la communication associée.
This report summarises the main results of the stocktake of 27 Basel Committee members and observers, including the European Central Bank (ECB) and the European Banking Authority (EBA)’ initiatives on climate-related financial risks. In short, the survey suggests that the majority of members consider it appropriate to address climate-related financial risks within their existing regulatory and supervisory frameworks. A majority of the members have raised risk awareness with banks through different channels, and many banks are disclosing information related to climate-related financial risks to some extent.
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This report summarises the main results of the stocktake of 27 Basel Committee members and observers, including the European Central Bank (ECB) and the European Banking Authority (EBA)’ initiatives on climate-related financial risks. In short, the survey suggests that the majority of members consider it appropriate to address climate-related financial risks within their existing regulatory and supervisory frameworks. A majority of the members have raised risk awareness with banks through different channels, and many banks are disclosing information related to climate-related financial risks to some extent.
The Hong Kong Monetary Authority (HKMA) issued the “Common Assessment Framework on Green and Sustainable Banking” to banks in Hong Kong. The purpose of this assessment is for HKMA to assess Hong Kong banks’ ability to react and respond to potential climate and environmental risk.
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The Hong Kong Monetary Authority (HKMA) issued the “Common Assessment Framework on Green and Sustainable Banking” to banks in Hong Kong. The purpose of this assessment is for HKMA to assess Hong Kong banks’ ability to react and respond to potential climate and environmental risk.
This Low Carbon Benchmark Regulation introduces two categories (EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks) as well as sustainability-related disclosures for benchmarks. It aims at increasing transparency and uniformity in the use of low-carbon indices.

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This Low Carbon Benchmark Regulation introduces two categories (EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks) as well as sustainability-related disclosures for benchmarks. It aims at increasing transparency and uniformity in the use of low-carbon indices.
The disclosure regulation sets harmonized rules applicable to financial market participants and advisors regarding the integration and consideration of sustainability risks and sustainability negative impacts in their decision-making or investment advice processes investment advice; and the provision of sustainability-related information on financial products. This regulation offers the possibility to achieve more transparency on sustainability in the financial markets in a unified way and to ensure comparability.

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The disclosure regulation sets harmonized rules applicable to financial market participants and advisors regarding the integration and consideration of sustainability risks and sustainability negative impacts in their decision-making or investment advice processes investment advice; and the provision of sustainability-related information on financial products. This regulation offers the possibility to achieve more transparency on sustainability in the financial markets in a unified way and to ensure comparability.
The Principles for Responsible Banking, created in 2019 through a partnership between founding banks and the United Nations, seeks to embed sustainable finance at the largest banks throughout the world, and is designed to help meet the UN’s Sustainable Development Goals and the Paris Climate Agreement. They ensure that signatory banks’ strategy and practice align with the vision society has set out for its future.

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The Principles for Responsible Banking, created in 2019 through a partnership between founding banks and the United Nations, seeks to embed sustainable finance at the largest banks throughout the world, and is designed to help meet the UN’s Sustainable Development Goals and the Paris Climate Agreement. They ensure that signatory banks’ strategy and practice align with the vision society has set out for its future.
Le principal objectif du présent avis est de fournir aux émetteurs, particulièrement les petits, des indications sur la manière d’établir l’information à présenter sur les risques importants liés au changement climatique. En particulier, les indications qui y sont fournies s’intéressent essentiellement aux obligations d’information de l’émetteur en ce qui a trait au rapport de gestion et à la notice annuelle.

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Le principal objectif du présent avis est de fournir aux émetteurs, particulièrement les petits, des indications sur la manière d’établir l’information à présenter sur les risques importants liés au changement climatique. En particulier, les indications qui y sont fournies s’intéressent essentiellement aux obligations d’information de l’émetteur en ce qui a trait au rapport de gestion et à la notice annuelle.