Sustainable finance

Sustainable finance

Sustainable finance—content

Content on sustainable finance in this subtopic includes the following:

An introduction to sustainable finance

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Sustainable finance and ESG—overview—provides details on climate change and sustainability issues facing the financial sector. It provides an introduction to the area, setting out why climate change and sustainability is such a hot topic and explains how that has affected the financial sector especially when dealing with risk and financial stability. The Practice Note provides information on the global and European policy and legislative initiatives in this area, such as the Paris Agreement 2015, Sustainable Development Goals (SDGs), Principles for Responsible Investment (PRI), Principles for Responsible Banking (PRB), Task Force on Climate-related Disclosures (TCFD), Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (Taxonomy Regulation) and Regulation (EU) 2019/2089 amending Regulation (EU) 2016/1011 as regards EU climate transition benchmarks, EU Paris-aligned benchmarks and sustainability-related disclosures for benchmarks (Low Carbon Benchmark Regulation). Policy developments, alongside regulatory and legislative measures in the UK level are also covered, as well as developments from

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Latest Environment News

Commission adopts revised REACH Fee Regulation with new SME validation requirements

The European Commission has adopted the revised Regulation (EU) 2025/2067 (REACH Fee Regulation), introducing mandatory ex-ante verification for small and medium-sized enterprises (SMEs) seeking reduced fees. Under the updated regulation, SMEs intending to submit REACH registrations or authorisation applications must apply for company size validation at least two months before submitting their dossiers, with this requirement taking effect from 5 February 2027. The European Chemicals Agency (ECHA) has two months to verify SME status once documentation is received, and recognised SME status remains valid for three years. Standard fees and charges for large companies will increase by 19.5% to reflect inflation, taking effect from 5 November 2025, while SME fees remain unchanged to safeguard competitiveness. If ECHA does not recognise SME status, an administrative charge may be imposed at a level set by ECHA's Management Board. The regulation enters into force twenty days following publication in the Official Journal of the European Union.

RICS publishes insight paper on flooding and implications for property professionals

The Royal Institution of Chartered Surveyors (RICS) has published an insight paper titled ‘Flooding and its implications for property professionals’, providing members of the profession with a detailed overview of the growing challenges and responsibilities surrounding flood risk management across the UK. The paper examines the increasing responsibilities of surveyors across all disciplines in helping clients, communities and policymakers respond to the rising risks and impacts of flooding. RICS emphasises the need for surveyors to integrate flood awareness and resilience thinking into all areas of practice, including valuation, planning, land management, as well as construction and property management.

Commission and High Representative present new EU global climate and energy strategy

The European Commission and the High Representative have presented a new international strategy for securing Europe’s place in global markets titled EU global climate and energy vision. The strategy uses diplomacy to protect the EU’s core interests, promote fair transition standards and address new security threats. It adds an external dimension to the Clean Industrial Deal and aims to expand the EU’s clean technology manufacturing capacity to 15% of the global market while strengthening industrial competitiveness in line with the Clean Industrial Goal—seeking to fulfil the objectives set out in the Paris Agreement. The European Commission has also published a Questions and Answers page to provide further clarity on the objectives and implementation of the vision

Environment Agency publishes revised EPA methodology for water companies 2026-30

The Environment Agency (EA) and Natural Resources Wales (NRW) have published a revised Environmental Performance Assessment (EPA) methodology for 2026–30 to strengthen how water and sewerage companies in England and Wales are assessed and compared. The updated, non-statutory framework introduces a new five-point numeric and descriptive rating system, replacing the previous four-star scale, to provide a clearer and more consistent evaluation of company performance based on red-amber-green (RAG) metrics. The revisions, developed jointly following consultation, include new and enhanced measures such as assessments of data reliability from storm overflow monitors, the frequency of ‘dry day spills’, and stricter rules under new Water Industry Regulation Incidents (WIRI) guidance requiring companies to report all pollution events and removing their ability to downgrade incidents if pollution enters a waterbody. The first report using the updated methodology will cover 2026 data and be published in 2027, with full implementation phased in by 2030. Supported by improved technology, expanded regulatory powers and increased inspection capacity, the EA and NRW aim to improve transparency, strengthen accountability, and drive reductions in pollution to achieve higher environmental standards across the water sector.