Global Trustee and Fiduciary Services Bite Sized Issue 12 2024

13 QUICK LINKS COSTS & CHARGES CSDR CRYPTOASSETS EMIR FINTECH FSB FUND LIQUIDITY MIFID II/MIFIR NBFI OPERATIONAL RESILIENCE SUSTAINABLEFINANCE/ESG T+1 ASIA NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2024 • Climate-related risks and opportunities are clearly important to investors, but so are disclosures on the full spectrum of sustainability-related risks and opportunities. 90% of the jurisdictions have included or are considering requirements for disclosure covering all sustainability-related risks and opportunities over time. Some jurisdictions are initially focused on the disclosure of climate-related risks and opportunities. The IFRS Foundation says that, in some cases, jurisdictions have moved closer to the ISSB Standards relative to their initial proposals in response to calls from stakeholders for greater alignment with ISSB Standards and to secure comparability of disclosures by adhering to the global baseline. Link to the Progress Report here FSB Reports on Progress Towards Globally Consistent and Comparable Climate-related Disclosures On 12 November 2024, the Financial Stability Board (FSB) published its 2024 progress report on ‘Achieving Consistent and Comparable Climate-Related Disclosures’, drawing on a survey of FSB member jurisdictions and input from standard-setting bodies and international organisations. The FSB says that global efforts are now focused on supporting jurisdictions in adopting, applying, or otherwise being informed by the two disclosure standards issued by the ISSB in 2023. Work is underway, by the ISSB and other organisations, to provide implementation support and capacity building to address challenges faced by SMEs and by companies in emerging market and developing economies in using these standards. The FSB says that significant progress has also been achieved in interoperability between the ISSB Standards and other regional and jurisdictional disclosure frameworks, as well as in connectivity with financial reporting and prudential reporting requirements. The FSB says 19 out of 24 FSB member jurisdictions have regulations, guidelines or strategic roadmaps in place for climate-related disclosures. 17 FSB jurisdictions have set or proposed voluntary or mandatory disclosure requirements based on the ISSB standards and the recommendations by the TCFD. Moreover, several jurisdictions have taken concrete steps towards introducing assurance requirements to enhance the reliability and usefulness of climate-related disclosures. Link to Progress Report here FRC Launches Consultation on Updates to UK Stewardship Code On 11 November 2024, the Financial Reporting Council (FRC) launched a consultation on significant updates to the UK Stewardship Code. The FRC says it wants to streamline reporting requirements and reduce burdens for signatories and ensure a clearer focus on the purpose of Stewardship and the outcomes that it delivers. Key proposals in the consultation include: • A revised and enhanced definition of stewardship that emphasises the need to create long-term sustainable value for clients and beneficiaries as a key outcome of good stewardship; • A streamlined reporting process separating policy and activity disclosures to reduce reporting burdens; • Targeted principles for different types of signatories and service providers, including for the first time, a dedicated Principle for proxy advisors; and • New guidance to support effective implementation and help signatories with the transition to the new reporting arrangements. The FRC says that the consultation builds on interimmeasures announced in July 2024, which included reducing annual reporting requirements and providing greater clarity on stewardship outcomes which have already been welcomed by signatories and incorporated into their reporting models. The consultation period ends on 19 February 2025 Link to Consultation here