ESG & Sustainable Finance in Asset Management

The European Commission’s sustainable finance agenda has resulted in a number of recent regulations impacting asset managers, such as the Sustainable Finance Disclosure Regulation and the Taxonomy Regulation, with regulatory requirements expected to continue increasing in the coming years as policy makers try to complete the sustainable finance framework.

The financial sector, including the fund industry, has been identified by the EU Commission as a key component of sustainable finance which it hopes will facilitate the flow of private capital needed to tackle climate change and to meet other environmental and social objectives.

While the new ESG rules pose compliance challenges, sustainable finance offers significant opportunities for those willing to embrace them. Providing investment solutions geared towards ESG and sustainable investment objectives, alongside generating financial performance, is therefore a trend set to stay.

Our clients

We assist the full range of asset managers (UCITS management companies, AIFMs and MiFID firms) and funds navigate the complex regulatory landscape and help clients identify the risks and opportunities of sustainable finance.

Our participation in various industry working groups related to sustainable finance such as ALFI (e.g. the Legal and Policy working group which we chair), EFAMA and Invest Europe as well as our close contact to the Luxembourg regulator, the CSSF, ensures that we are always at the cutting edge of regulatory developments. 

Our services

Our services include:

• Advising on compliance with all relevant regulations such as the Sustainable Finance Disclosure Regulation and the Taxonomy Regulation
• Drafting and reviewing of SFDR-related disclosure requirements in respect of prospectuses, annual reports, websites, LPAs and marketing communications
• Advising on regulatory filings involving SFDR pre-contractual disclosures, upgrades to article 8 or 9 SFDR and relevant CSSF positions on SFDR
• Advising on ESG market trends and developments
• Advising on ESG governance and risk management for AIFMs and UCITS Management Companies
• Compliance review of SFDR-related policies for AIFMs and UCITS management companies
• Integrating ESG due diligence in legal due diligence as part of investment and acquisitions