On April 30, 2021, Bank Negara Malaysia (BNM) published Malaysia’s national climate-focused sustainability taxonomy for the financial sector, the Climate Change and Principle-based Taxonomy (CCPT). The CCPT sets out five Guiding Principles (GPs) intended to help financial institutions (FIs) assess and categorize economic activities according to the extent to which they meet climate objectives and promote the transition to a low-carbon economy. In this Blog Post, we discuss the scope and applicability of the CCPT,…

In a Report published in April 2021, The Circle, an NGO that champions equal rights and equal opportunities for women and girls, proposed an EU regulation specifically aimed at achieving a living wage for workers in the garment industry. As the fashion industry emerges from the COVID-19 pandemic – which has brought renewed attention to complex supply chains and the conditions of workers in garment factories – Jessica Simor QC, author of the Report, argues…

The European Coalition for Corporate Justice, European Center for Constitutional and Human Rights and Initiative Lieferkettengesetz reflect, in a Business and Human Rights Resource Centre Paper entitled “Towards EU Mandatory Due Diligence Legislation”, on insights from past efforts of companies to advance responsible business conduct and monitor their supply chain. Among other things, they caution against relying on “policing” suppliers through social audits and warn that private auditing and certification must not become…

On April 28, 2021, the Securities Commission Malaysia (SCM) updated the Malaysian Code on Corporate Governance (MCCG) to strengthen the corporate governance culture of Malaysia’s listed companies. According to SCM, in this first update since 2017, the MCCG “focuses on the role of the board and senior management in addressing sustainability risks and opportunities of the company”, among other topics. The SCM notes: “The MCCG 2021 also addresses the urgent need for companies to…

On April 26, 2021, the Central Bank of Brazil (BCB) launched a new public consultation (No. 86/2021, the “Consultation”) on a proposed regulation for mandatory disclosure of social, environmental, and climate risks by financial institutions. Climate-related risks must be disclosed in accordance with the TCFD Recommendations (“Recommendations”), including both physical and transition risks. As for environmental and social risks, the Consultation indicates that disclosure must be aligned with ESG criteria. The draft resolution under the…

Two new net zero alliances for the financial sector were launched on April 21, 2021: The Glasgow Financial Alliance for Net Zero (GFANZ) and the Net-Zero Banking Alliance (NZBA). The launch of these two alliances will bring about coordinated commitments across the financial system that are subject to transparent reporting and accounting in line with the Race to Zero criteria. We highlight key aspects of GFANZ and NZBA in this Blog Post.…

In a widely anticipated announcement made at the commencement of the Leaders Summit on Climate, President Biden committed the United States to a 50-52 percent reduction in greenhouse gas (GHG) “pollution” from 2005 levels by 2030. The announcement also notes that President Biden fulfilled his promise to rejoin the Paris Agreement and set a course for the United States to tackle the climate crisis at home and abroad, reaching net zero emissions economy-wide by…