On 3 November 2021, the Central Bank of Ireland (“CBI”) issued a letter to Chairs and CEOs of Regulated Financial Service Providers (“RFSPs”) on climate and ESG issues.
The letter highlights the statutory obligations of RFSPs and related supervisory expectations relating to climate and sustainability issues.
The letter notes that climate change should be seen as a strategic priority, emphasising the need for RFSPs to lead and drive ESG agendas within their organisations.
Firms should be able to establish demonstrable plans within the following five key areas:
These expectations can be applied by RFSPs in a proportionate manner, aligned to the nature, scale and complexity of the organisation. While the letter recognises that the expectations are not prescriptive or binding, the CBI will keep a keen focus on the development of sustainable finance and individual organisations’ roles in achieving this.
Our initial feedback from talking to our clients is that this letter has been well received. Notwithstanding that for many sectors, exact ESG requirements are still to be determined, this letter provides a helpful roadmap summarising the key areas where demonstrable plans should be in place. These expectations also help affirm and shape the roadmap for climate change and sustainability plans that we are assisting our clients with.
Our multidisciplinary team is on hand to help you chart your ESG journey. We help organisations navigate the ESG landscape and understand the applicable legislation and frameworks.
Learn more about our ESG Services here.
Link to the Dear CEO Letter here.
Partner Governance, Risk & Compliance