ESG / Sustainable Investment Funds
Matheson’s Asset Management and Investment Funds Department supports our asset manager and fund clients in meeting the complex new obligations arising from the European Union’s Sustainable Finance Action Plan. This latest regulatory wave aims to integrate ESG factors into investment decision making, reduce the risks of “green-washing” and facilitate the flow of capital into sustainable economic activities. The increased regulatory focus on ESG follows and addresses burgeoning investor interest in recent years in socially responsible investment and ESG issues.
Growing investor interest in ESG matters and regulatory focus on sustainable finance has significant implications for the asset management sector and investment funds, impacting on investment decision-making, product classification and distribution. Asset managers are increasingly being required to ensure that sustainability risks are adequately considered in investment decisions and that the ESG preferences of their clients are fully accommodated. ESG has therefore become a core business consideration for asset managers and investments funds as well as a significant compliance project.
The legislative initiatives under the EU’s Sustainable Finance Action Plan come into effect in phases, including the introduction of extensive ESG disclosure requirements in March 2021, meaning careful and ongoing monitoring is required to ensure compliance. The introduction of the EU Taxonomy for environmentally sustainable economic activities offers opportunities for well-designed financial products. We are advising several asset manager and investment funds clients on addressing these new disclosure requirements.
With our team of 70 asset management legal and regulatory advisers working alongside Matheson corporate, finance and capital markets and taxation departments, we offer a comprehensive service providing advice to clients on the broad, deep and growing range of issues arising from the sustainable finance agenda.
A selection of our more recent experience is set out below:
- Advising asset managers and investment funds on the application of the Sustainable Finance Disclosure Regulation.
- Advising on the implementation of compliance projects relating to requirements under the Sustainable Finance Disclosure Regulation.
- Advising on the application of the Sustainable Finance Disclosure Regulation to remuneration policies.
- Advising on the drafting of ESG policies.
- Advising on fund, lending and investment structures for lending or investments in renewable energy projects