Regulatory Requirements

Climate Disclosure Rule:  March 21, 2022 U.S. SEC rule proposal to enhance and standardize public company environmental disclosures

Comply or Explain: A requirement that an organization either make a specific disclosure or explain why it is unable to do so.

CRD: EU Capital Requirements Directive

CRR: EU Capital Requirements Regulation

CSRD: EU Corporate Sustainability Reporting Directive

DOL:  The U.S. Department of Labor

EFRAG: European Financial Reporting Advisory Group, which is developing the European Sustainability Reporting Standards (ESRS)

ESRS:  European Sustainability Reporting Standards

EO 14030:  U.S. Executive Order on Climate-Related Financial Risk (May 20, 2021)

EO 14057:  U.S. Executive Order Catalyzing Clean Energy Industries Through Federal Sustainability (December 8, 2021)

FSOC:  U.S. Financial Stability Oversight Council

Fund Disclosure Rule: May 25, 2022 proposed U.S. SEC rule that would broadly categorize certain types of ESG strategies and require funds to provide specific disclosures based on the strategies they pursue

Fund Names Rule: May 25, 2022 U.S. SEC rule proposal that would require funds to invest 80% of its assets in investments suggested by their name

NFRD:  EU Non-Financial Reporting Directive, which requires certain large companies to disclose certain non-financial matters (such as environmental, human rights, anti-corruption, and diversity issues) as part of their annual public reporting obligations.

SEC:  The U.S. Securities and Exchange Commission

SFAP:  EU Sustainable Finance Action Plan

SFDR: EU Sustainable Finance Disclosure Regulation

SMEs:  Small and Medium Enterprises (who would be subject to the CSRD)

Sustainable Finance Taxonomy:  The EU’s uniform classification system/glossary established to assure that financial markets participants have a standard language for discussing environmental sustainability.