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Sustainable Investment

ESG has disrupted the funds sector, yet it does impact it in many different ways. The issues that you face as investment funds manager or institutional investor depend on many factors: the evolution of the regulatory landscape; and the readiness of your company to take advantage of the opportunities, and mitigate the risks, presented by the increasing challenge of ESG, including namely the Sustainable Finance Disclosure Regulation (“SFDR”), as supplemented by the SFDR Level 2 requirements (“RTS”), and the EU Taxonomy as provided by the Taxonomy Regulation.. 

CMS Funds Group lawyers advise at all stages of the funds establishment, investments, marketing and disclosure, and its management to comply with the latest regulations framework, and help you understand the challenges of ESG and sustainable investments.  

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Funds | ESG Client interviews
ESG is complex. We have interviewed major funds market operators to find out how they handle it. View our short videos.
SFDR overview
We provide insights into key concepts, impacts for all relevant entities and products, as well as ESG-focused products, and into the future application of Level 2.


CMS Expert Guide to renewable energy
The Renewables Sector is now many decades old and considered a mature investment sector by many. Yet the issues it faces continue to evolve and grow at pace with the evolution and growth of the sector...
CMS Next
What’s next? In a world of ever-ac­cel­er­at­ing change, staying ahead of the curve and knowing what’s next for your business or sector is essential. At CMS, we see ourselves not only as your legal advisers but also as your business partners. We work together with you to not only resolve current issues but to anticipate future challenges and innovate to meet them. With our latest publication, CMS Next, our experts will regularly offer you insights into and fresh perspectives on a range of issues that businesses have to deal with – from ESG agendas to restructuring after the pandemic or facing the digital transformation. We will also share with you more about the work that we are doing for our clients, helping them innovate, grow and mitigate risk. To be able to provide you with the best support, we immerse ourselves in your world to understand your legal needs and challenges. However, it is equally important that you know who we are and how we can work with you. So, we invite you to meet our experts and catch a glimpse of what is happening inside CMS. Enjoy reading this publication, which we will update regularly with new content. CMS Executive Team
Climate Risk report
At COP26 institution after institution came forward to make stronger commitments to what is now broadly seen in most countries as a common goal: to reduce global carbon dioxide emissions. In particular, the private sector stepped up to the plate. For example, the Glas­gow Fin­an­cial Alliance for Net Zero posited a potential USD 130tn of private capital to accelerate the green trans­ition. COP26 also escalated the role of climate disclosures in achieving net zero. To achieve global comparability, the In­ter­na­tion­alSus­tain­ab­il­ity Standards Board (ISSB) is to deliver a global baseline that gives investors in­form­a­tion about the climate and sustainability risks in relation to companies they (may) invest in. Further, the UK introduced requirements for all listed companies to produce net-zero transition plans by 2023. These are seen as drivers for achieving climate-positive investing. International commercial lawyers have a crucial role to play in navigating and implementing the frameworks that emerge from COP26. Being guardians of the rule of law and facilitators of business and trade, lawyers will be at the centre of discussions on what our clients are required to do, and also on what they should do in light of wider societal and reputational considerations. It is in our clients’ interests that we guide them toward outcomes in line with wider societal ambitions. To do oth­er­wise would, among other things, risk placing them at a competitive disadvantage as the world pivots toward a clearer climate mitigation agenda. Climate Risk is a broad term and covers a multitude of concepts. This report focuses on three legal risks. First, of financial institutions holding corporates to account over perceived climate risks. Second, the risk to corporates on what they do and say about the impact on their business from (or from their business on) climate change. Finally, risk of litigation against corporates relating to climate change. As lawyers, what we see is broadly a great desire among our clients to be part of the solution on climate change. Almost all major corporate clients that we speak to wish to take positive steps that are in line with the desire for climate action, and also to capitalise on the op­por­tun­it­ies presen­ted as we transition to a net zero economy. We find that, among the investment community, vast capital is ready and available to be deployed on in­fra­struc­ture and other projects that will push the agenda forward. The question is whether there is sufficient clarity on the agenda, the rules and the risks involved. As this report shows, a key driver of Climate Risk for corporates revolves around information. Both quan­ti­fi­able in­form­a­tion about the potential direct impacts of climate change on particular sectors and businesses. And also con­sist­ent, comparable and reliable information about the companies themselves. Companies are pro­du­cing re­ports that are deluging investors on how they are measuring and managing their impact on and from climate change. However, there is some distance to go before investors can compare the information across the economy to make informed de­cisions. Or­gan­isa­tions such as Baringa, who have kindly con­trib­uted to this report, support the same clients from a parallel perspective. They help investors and corporates to assess climate risk exposure by using Baringa’s Climate Change Scenario Modelling. Tools such as these are invaluable for making the best decisions from the information available on risks to companies and the credibility of their adaptation and transition plans. On climate litigation, this is a direct and growing risk to corporates who fall under the spotlight of a variety of potential claims against an increasing number of po­ten­tial claimants. It is prudent to actively manage this risk through dispute avoidance strategies, having plans in place to deal quickly and effectively with the situation where a claim is brought, and understanding the key features that are typically at play in such litigation. Corporates are well aware that climate risks are an integral feature of their business planning. What some oc­ca­sion­ally criticise is the lack of long term cer­tainty. Mak­ing knee jerk decisions based on woolly polit­ic­al sen­ti­ments that could change tomorrow rarely makes good business sense. Clearer long term policy statements from governments and inter-gov­ern­ment­al in­sti­tu­tions can help on this, as well as clearer policies on how governments see the shape of the future zero carbon economy, and the pathways to it. Quite apart from the outcomes of COP26, with the private sector committing en masse to the climate agenda and the ability to scrutinise the private sector’s re­sponse through climate disclosures, net zero plans and other actions they take, we anticipate that the issue of Climate Risk will continue to rise up boardroom agendas.
Plastics and packaging laws in perspective
Plastics and packaging have attracted significant consumer, media and legislative interest over recent years with an array of laws being proposed to incentivise behavioural and design change. Significant...
Shifting the Dial: The move towards Sustainable Investing in Singapore
This article is produced by CMS Holborn Asia, a Formal Law Alliance between CMS Singapore and Holborn Law LLC. The Monetary Authority of Singapore (MAS) recently announced that it would deploy US$1.8...