Italy ESG GEMS - June 2023

In this edition we focus on a number of legislative proposals, delegated acts, guidelines and standards that were published in the last month, touching upon various topics within the ESG space – from sustainable finance to greenwashing, from reporting and disclosure standards to climate litigation.

Focus on

• Running the greenwashing gauntlet

Sustainable Finance

• EU Commission proposes authorisation and new rules for ESG rating providers: expect tight timeframes, especially if you’re outside the EU
• EU Commission publishes sustainable finance package including Taxonomy Delegated Acts and FAQ
• ICMA releases new resources on Green, Social, Sustainability and Sustainability-Linked Bond Principles
• LMA publishes model provisions for sustainability-linked loans
• EBA consults on benchmarking of diversity practices under CRD and IFD

Disclosure & Reporting

• CSRD: European Commission publishes draft delegated act with first set of sustainability reporting standards
• ISSB publishes final versions of first two global sustainability disclosure standards

Climate Change & Environment

• Climate litigation as a financial risk: a direct causal link between climate litigation and share prices
• Deforestation Regulation: EU imposes new due diligence duties on operators and traders
• European Commission publishes Taxonomy Delegated Acts with criteria for remaining four environmental objectives and additional criteria for climate

Greenwashing & Litigation

• ESAs publish progress report on greenwashing in financial sector
• Next steps on proposal for a Directive empowering consumers for a green transition