Katten ESG Guidepost is a monthly publication highlighting the latest news, legal and regulatory developments involving environmental, social and governance matters.
To read more issues of Katten ESG Guidepost, please click here.
Johnjerica Hodge and India Williams Share Racial Equity Audit Tips with Law360
Partners and ESG Risk and Investigations Co-Chairs Johnjerica Hodge and India Williams spoke in depth with Law360 about their insight into how to yield valuable information to inform companies and their stakeholders' goals through racial equity and civil rights assessments. India noted that having a third-party law firm or consultant conduct the review is critical to getting honest feedback. During an audit, Johnjerica indicated it is important to talk to the right people — mid-level management — for the most accurate information. Read about Johnjerica and India's comments.
ESG Corporate Reporting Requirements — Don't miss the deadline to comply!
By Neil Robson, Brigitte Weaver, Christy Wilson
The new Corporate Sustainability Reporting Directive (CSRD) was adopted by the EU in April 2021 to meet its Paris Agreement climate change goals. In-scope companies (which includes those admitted to trading on an EU-regulated market, large EU companies and groups, and non-EU companies generating annual EU revenues surpassing €150 million, with an EU branch annual net turnover of €40 million) will have granular reporting requirements on their ESG activities which must be published alongside the company's financial statement. The key objective of the CSRD is to require businesses to increase transparency and accountability in their "green" reporting. These reporting requirements will come into effect on a staggered basis between 2024 and 2028 depending on the size of the relevant entity or group. The first reporting deadline applies to large companies or groups. Read about the CSRD large-size criteria.
FinCEN Proposes Enhanced AML Rules
By Susan Light, Eli Krasnow
On July 3, the Financial Crimes Enforcement Network (FinCEN) published a proposed rule to strengthen and modernize financial institutions' anti-money laundering and countering the financing of terrorism programs. The proposal would require financial institutions to establish, implement and maintain effective risk-based AML/CFT programs. The effectiveness standard and other technical changes contemplated by the proposal are designed to "promote clarity and consistency across FinCEN's program rules for different types of financial institutions." The financial institutions covered by this proposed rulemaking include banks, money services businesses, broker-dealers in securities, mutual funds, insurance companies, futures commission merchants and introducing brokers in commodities, operators of credit card systems, loan or finance companies but does not address investment advisers. Read about the FinCEN proposal.
(mis)Conduct, Money & Reputation: A Look at Equifax, CrowdStrike & Cybersecurity
Hosted by Neil Robson
In the latest episode of (mis)Conduct, Money & Reputation, Katten Financial Markets and Funds Partner Neil Robson and David Masters of reputation specialists Lansons/Team Farner examine high-profile breaches such as the Equifax data scandal and NHS ransomware attack. They explore why these failures should be seen more widely as misconduct, common myths about cybercrime, debunking misconceptions about its targets and motives and how others are addressing these challenges as digital threats evolve and in light of the recent CrowdStrike IT outage. For most financial services firms, it's about when and how often these attacks will come, not if. This episode provides a crucial guide for asset managers and financial services professionals to prepare for, mitigate against and avoid the reputational fallout that occurs when things go wrong. Read about this (mis)Conduct, Money & Reputation podcast episode.
