Asset Managers Face ‘Significant’ Changes to ESG Rules in Europe

Europe’s top regulators have proposed tightening rules for ESG funds in a move that will likely have wide-reaching ramifications for asset managers operating in the region.

The European Supervisory Authorities, which cover markets, banks and insurers, want fund managers to provide more information on social impacts, decarbonization targets and thresholds for excluding companies, according to a consultation paper. The proposal, which also targets derivatives, gives the industry until July 4 to respond.

Lawyers at Simmons & Simmons are already advising clients that the ESA plan represents “significant changes” to existing requirements under the Sustainable Finance Disclosure Regulation, which is ...