Regulation of ESG

In response to the ambitious targets set by governments and institutions towards a more sustainable future, regulators are responding with a raft of regulatory measures to embed a framework of Environmental, Social and Governance (ESG) standards, transparency and integrity across the investment chain.

Globally, policymakers have high expectations for the financial sector, as it becomes ever more apparent that private capital is needed to accelerate the transition to a sustainable economy. The role of regulators is an important one in this process, as regulatory measures are needed to address the barriers to sustainable investing and to implement effective regulatory frameworks that can support greater capital flows towards sustainable investments.

Firms now need to navigate complex and emerging ESG regulations impacting the entire financial services value chain. Asset owners, asset managers, and issuers need to understand the implications of these regulations not only for themselves, but also to understand the implications for each other.

This is a complex effort for global firms because the emphasis, timing and outcome of policymaker interventions differ, notwithstanding the common objectives being sought.

This white paper examines the current priorities of regulators around the world as they work to facilitate stronger ESG principles and practices within the financial services sector.

Further insights