ESG: Key regulatory risks for financial services firms in the UK and US and how to manage them

Investors are increasingly seeking sustainable financial products and ESG investing, traditional investing combined with sustainable or otherwise philanthropic aims, has seen huge growth in recent years. Regulated firms are also seeking to improve their own ESG performance more generally to build stronger relationships with their stakeholders, including those who use their services. Whilst the growing emphasis on ESG presents opportunities for financial services providers, it also brings with it a number of regulatory risks, which need to be properly managed with a view to avoiding future investigations and enforcement. In our latest briefing in this area, we look at some key areas of regulatory risk around ESG and suggest some practical steps that can be taken to manage these, with a focus on the UK and US regulatory regimes.