With the transition to a sustainable economy fast becoming a key focus, growing numbers of investors are looking for opportunities which can produce financial returns while also tackling key social and environmental challenges. At the same time, politicians are directing capital towards sustainable investments.
These moves have led to increased regulatory scrutiny, particularly in Europe, where we are seeing a rise in environmental, social and governance (ESG) regulations targeting the financial sector.
In this paper A changing landscape: rising risk, rising regulation, we provide an overview of some of the key regulatory activities, exploring:
- The main initiatives transforming the regulatory landscape
- The challenges and limitations presented by new policies and frameworks
- Next steps