ESG (Environmental, Social, Governance) and sustainable finance considerations continue to play a key role in UK and EU regulatory agendas with 2024 marking a significant shift from rule-writing to implementation, particularly for the firms captured under the EU’s Corporate Sustainability Reporting Directive (CSRD).

      Supervisors are focused on:

      • Robust corporate sustainability reporting and assurance, including development of detailed and credible transition plans.
      • Mitigation of greenwashing risks – through better communications, product labels and application of taxonomies.
      • Demonstrable progress in the identification, measurement and management of climate and nature-related financial risks, including more quantitative and granular approaches to scenario analysis.
      • Appropriate corporate sustainability due diligence across all operations.

      The regulatory pressure on financial services firms remains intense, due to expanding reporting and disclosure requirements, lower tolerance from supervisors where firms fail to meet expectations and growing momentum around nature and social impacts. On this page you will find insights and thought leadership from KPMG's EMA FS Regulatory Insight Centre on the steps that regulators and firms are taking to embed the E, S and G in the financial system.

      Our insights

      CP10/25 – PRA’s latest expectations for banks and insurers.

      EIOPA recommends capital charges for fossil fuel assets

      Chancellor’s Mansion House speech – regulating for growth not just risk

      Thematic feedback on accounting for climate risk

      What does the UK General Election result mean for FS regulation?

      Sustainability reporting is becoming a top strategic priority, but requires a systematic approach across the organization to be successful

      Benchmarking banks' climate-related disclosures in the 2023 reporting cycle

      10 predictions - how could regulatory expectations evolve in 2024?

      As the EU and UK press ahead with proposals, differing approaches may be challenging

      Market-based initiatives emerge to address risks

      Related publications

      KPMG in the UK's latest Regulatory Barometer finds that regulation relating to ESG and sustainable finance continues to have a material impact on firms across all areas of financial services.

      The outlook for European financial services regulation

      UK regulatory round-ups providing insights on where the agenda is heading and implications for firms.


      Regulatory Insights

      Providing pragmatic and insightful intelligence on regulatory developments.

      Our people

      Michelle Adcock

      Director, FS Regulatory Insight Centre, Risk and Regulatory Advisory

      KPMG in the UK

      Radhika Bains

      ESG Specialist Manager, EMA Regulatory Insight Centre

      KPMG in the UK


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