ESG: Regulatory

Mastering the complexities of ESG regulations

As ESG regulations continue to expand at national, regional, and international levels, businesses face the challenge of understanding and complying with a wide array of requirements, particularly when operating across diverse jurisdictions. From modern slavery and human rights disclosure, to environmental impact assessments, gender pay gap reporting, and anti-bribery measures, the regulatory landscape is diverse, intricate, and rapidly evolving.

Mandatory ESG disclosures serve as the foundation, yet firms are increasingly pressured by industries and investors to go above and beyond minimum requirements and voluntarily disclose ESG data in various formats and frequencies.

Navigating this landscape can be daunting, given the multitude of acronyms involved, such as SFDR, SDR, CSDR, CSDD, TCFD, TNFD, and ISSB. However, our extensive experience in regulatory implementation and change management enables us to efficiently navigate this complex and evolving landscape, helping our clients grasp the implications of these acronyms in their day-to-day operations.

Our regulatory advisory offering encompasses a wide spectrum of mainstream issues, including:

• ESG Regulatory Fragmentation and Horizon Scanning
• ESG Regulation Implementation
• Governance with Guidance on Competition Rules and Stewardship Obligations
• Non-financial Reporting Obligations
• ESG Fund Disclosure Requirements for Both Entity and Product Levels

At Simmons, we also actively contribute to shaping ESG policy and regulation through our responses to ESG consultations and participation in industry group and regulatory ESG committees, and boards.

We not only possess a profound understanding of ESG regulations and how they apply in practice but also remain at the forefront of evolving laws and best practices. By partnering with us, businesses can proactively manage risks, sidestep legal pitfalls, and enhance their reputation as responsible corporate citizens.

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To help understand policy and regulatory initiatives that are likely to impact business operations, we have created an ESG regulatory tracker. Global Head of ESG, Sonali Siriwardena tells you more about this in this video.