Global Trustee and Fiduciary Services Bite Sized Issue 8 2025

7 QUICK LINKS CBDC CRYPTOASSETS CSDR EMIR FINTECH FSB OPEN FINANCE OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG ASIA PACIFIC NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2025 Key innovations provided in the new Standard include: • Expanding asset class coverage to ensure broad applicability. • Requiring the improvement of the quality and transparency of emissions inventories. • Allowing financial institutions, the option to focus on the net-zero alignment of their customers, as an alternative to setting pathways for financed emissions. • Providing guidance on decarbonising the built environment. According to the SBTi, the Standard also addresses key climate challenges through requirements focused on the most emission-intensive activities, including: • Addressing deforestation exposure : There are expectations for financial institutions to assess, monitor, disclose and address deforestation exposure in their portfolios, with an engagement plan required to address significant risks. • A fossil fuel transition policy requirement : It sets out clear steps and timelines for ceasing new financial activities and insurance services to the fossil fuel industry. A summary of the Standard and more information on how to set targets is available in the SBTi’s Financial Institution Net-Zero Standard in Brief. The SBTi will be running a webinar on the Standard on 10 September 2025 to explore the key elements of the new Standard and discuss how to use it to set targets. Link to Financial Institutions Net-zero Standard here HM Treasury Publishes Response to UK Green Taxonomy Consultation On 15 July 2025, the UK government announced that after careful consideration of the responses to its November 2024 consultation on a UK Green Taxonomy, it has concluded that a UK Taxonomy would not be the most effective tool to deliver the green transition and should not be part of the UK’s sustainable finance framework. The UK government said it remained committed to delivering its Clean Energy and Growth Missions and meeting its environmental targets. The UK government said it would focus on delivering the plans that respondents have told it will have the greatest impact and would consider how best to align its policies to support investors to make investment decisions. Link to HM Treasury Consultation Response here FSB Updates its Roadmap for Addressing Financial Risks fromClimate Change On 14 July 2025, the Financial Stability Board (FSB) delivered to the July 2025 meeting of G20 Finance Ministers and Central Bank Governors its updated report emphasising the importance of comprehensive, reliable, granular, consistent, and comparable information on climate-related financial risks According to FSB, the report provides a factual update on the work undertaken by it, standard- setting bodies, and other international organisations in the four areas identified by the 2021 Roadmap for Addressing Climate-related Financial Risks: • Firms’ disclosures; • Data; • Vulnerabilities analysis; and • Regulatory and supervisory practices and tools. At the request of the South African G20 Presidency, the report also provides an outline of the FSB’s medium-term approach to potential climate-related financial risks, identifying the following areas for FSB work: • Coordination of international efforts; • Information sharing;