Sustainable finance and ESG—key global principles for financial institutions
Produced in partnership with Dianne Bell of Freelance
Sustainable finance and ESG—key global principles for financial institutions

The following Financial Services practice note produced in partnership with Dianne Bell of Freelance provides comprehensive and up to date legal information covering:

  • Sustainable finance and ESG—key global principles for financial institutions
  • Global sustainable finance and ESG initiatives for financial institutions
  • United Nations principles—principles-based measures on ESG
  • Principles for Responsible Investing (PRI)
  • Principles for Sustainable Insurance (PSI)
  • Principles of Responsible Banking (UNEP PRB)
  • United Nations and OECD—conduct measures
  • Financial Stability Board (FSB)—Task force on climate-related financial disclosures (TCFD)
  • TCFD and 2017 Final Report
  • Sustainability Accounting Standards Board (SASB) and the Climate Disclosure Standards Board (CDSB)’s TCFD Implementation Guide
  • More...

Global sustainable finance and ESG initiatives for financial institutions

This Practice Note covers some of the key environmental, social and governance (ESG) and sustainable finance initiatives and principles that are relevant to financial institutions, including the United Nation (UN)-supported Principles for responsible investment (PRI), Principles for sustainable insurance (PSI) and Principles for responsible banking (PRB), as well as the Financial Stability Board (FSB)’s task force on climate-related financial disclosures (TCFD).

For more information on the meaning of ESG and why it is growing in importance, as well as the key ESG associations/bodies, standards and reporting frameworks, see Practice Note: Environmental social governance—the investment market. For high level information on the key global, EU and UK sustainable finance initiatives, and the concept of sustainable finance, see Practice Note: Global and EU sustainable finance initiatives and for more information on voluntary and mandatory ESG reporting schemes and initiatives, see Practice Notes: Voluntary environmental, social and corporate governance (ESG) reporting and Mandatory environmental reporting.

United Nations principles—principles-based measures on ESG

The United Nations (UN), through its Environment Programme Finance Initiative (UNEP FI), has developed a series of sectoral principles-based sustainable financial frameworks, including:

  1. 2006: the UN PRI

  2. 2012: the UN PSI

  3. 2019: the UN PRB

These are voluntary principles but with specific commitments and obligations for signatories. Becoming a PRI, PSI and/or PRB signatory, and commencing meeting the requirements under these

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