b'TABLE OF CONTENTSOTHER TOPICS OF NOTE in terms of the potential downside risk. The trend isgovernment has also introduced new draft underway, however, and looks likely to continue tolegislation in 2021, which will take effect as of April gather pace over the months and year ahead. 6, 2022, for accounting periods thereafter. It will ESG trends, of course, are commonly (although notexpand TCFD aligned climate disclosures to large always), by their nature, global and not jurisdiction- companies outside of the FCAs remit. This will specific, and that has largely been the caseencompass a number of the UKs largest companies, through 2021. That said, significant developmentsbanks and insurers.also occurred in particular jurisdictions, includingThe FCA considers that the financial sector has an the UK, US and Asia, where many of ourimportant role to play in helping the economy adapt practitioners are focused, and engaged into a more sustainable long-term future. The FCAs advising, on the impact on the insurance industry. ESG strategy sets out how it plans to deliver on the target ESG-related outcomes included in its United Kingdom Business Plan 2021/22.In 2021, the Bank of England (BOE) ran its firstIn the fourth quarter of 2021, the FCA also climate biennial exploratory scenario (CBES) topublished a Discussion Paper inviting views on a explore the resilience of the largest UK banks anddisclosure and product labeling framework for ESG insurers to the physical and transition risksfinancial products (which may include insurance associated with climate change and understandproducts) which seeks to manage risks relating to the challenges to the participants businessgreenwashing and mis-selling in ESG financial model. The BOE is expected to publish itsmarkets. The input received will guide the FCAs aggregated CBES results in May 2022. policy design in this area, ahead of consultation on new proposals in spring 2022 which may mirror The UK Financial Conduct Authority (FCA) isparts of the EU Sustainable Finance Disclosure committed to helping investors put ESG matters Regulation already in force in 2021.at the heart of their investment decisions andpublic disclosures. Lloyds of London published a clear statement of intent, at the end of 2020, in its first Environmental, In 2021, the FCA finalized rules for climateSocial and Governance Report, which described the disclosures aligned with the Task Force on Climateinsurance markets plans for transitioning towards a Related Financial Disclosures (TCFD) on entitymore sustainable model, aligned with the United level disclosures for UK premium and standardNations Sustainable Development Goals, together listed companies (including insurers fitting thiswith its Insuring a sustainable, greener future criteria). The rules were expanded in Decemberreport in July 2021. Similarly, more global insurers 2021 to include life insurers and non-insurer FCA- made Net Zero, and other sustainability-focused, regulated pension providers. The target audiencecommitments, both in terms of their own operational for these disclosures are consumers and insurersactivities but alsoincreasinglyin terms of their institutional clients (e.g., pension scheme members,investment and underwriting portfolios.employers, corporate investors, etc.). The UK MAYER BROWN |173'