ESG Regulations for European regulated entities

The environmental, social, and governance (ESG) framework examines consequences that may positively or negatively impact the financial performance or solvency of investments, natural or legal persons because of influences derived from environmental, social and governance matters. On a European level, the ESG framework aims for the transition to a more sustainable economy.

ESG risks such as climate change, global warming, inequality, labour relations, bribery and corruption already present a negative financial impact on European regulated entities. Transitioning to a more environmentally friendly and sustainable financial system will come with challenges due to the scale, breadth, and complexity of the ESG risks to be managed.

Within this commentary the SALVUS Regulatory Compliance and Risk Management teams introduce key aspects of the ESG framework and discuss regulatory updates and requirements on a European level, as follows:

1. What are ESG factors?
2. Regulatory framework
3. Who shall ensure compliance?
4. New regulatory requirements
5. Application timeframes

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Find the full article here: https://salvusfunds.com/2022/12/01/esg-regulations-for-european-regulated-entities/