Sustainable investments and finance

Sustainable finance is a key priority for Ireland and across the EU, particularly when it comes to lending or investing to direct capital flows to sustainable activities.

Irish and EU financial services supervisory authorities have set out their expectations for businesses they supervise on sustainability issues such as climate and nature risk, sustainability disclosures, and greenwashing risk.

The EU’s sustainable finance framework, for example, has introduced a raft of obligations. Many apply to asset managers, (re)insurers, credit institutions, pension providers, and investment funds.

Our research shows over 60% of companies in financial services have engaged with regulators on ESG-related matters.

To support our clients, our specialist practices in asset management, finance, insurance, and pensions advise on their regulatory obligations and sustainable financing transactions.

Regulated fund management companies and investment funds are among the entities that must meet the disclosure requirements introduced by the Sustainable Finance Disclosures Regulation (SFDR) and the Taxonomy Regulation.

When clients are at the fund product design stage, we help them develop investment strategies and associated pre-contractual, website, and periodic reporting disclosures to ensure they meet these legislative requirements.

As clients focus on evolving ESG-related risks such as greenwashing, ALG leverages expertise across multiple practice areas to help clients mitigate these risks. This can include:

•    establishing robust risk management frameworks
•    developing policies and procedures 
•    negotiating contractual protections

Public sector funding won’t be enough to achieve the EU’s 2030 climate and energy targets. Significant private finance is needed to bridge the gap.

Sustainable finance initiatives seek to attract private capital towards sustainable investments to help ensure companies can finance their sustainable activities.

In the debt finance sector, borrowers and lenders of corporate loans trust our experience in supporting them with contractual economic incentives and other sustainability performance targets. We also help clients with their green bond issuances.

(Re)insurers play a key role in identifying and measuring material ESG risks, particularly climate change. Addressing climate and nature risks is challenging due to the data gap. Regulators have acknowledged this and are making efforts to support the sector.

With increased demand from consumers for sustainable products and increased disclosure requirements, insurers and intermediaries must ensure they disclose appropriately and can back up any sustainability claims. We help clients to build out governance frameworks, prepare disclosures and mitigate greenwashing risk.

Working with clients across the insurance sector, we help clients keep up with ESG-specific legislative requirements as well as sector-specific developments.

The focus on sustainability across the transportation sector is multi-faceted. With a challenging path ahead to decarbonisation, innovations are needed and financing has a key role to play.

Financial institutions are offering sustainable financing products in light of regulatory and public pressure on businesses to consider sustainability in their strategies, activities, and investments.

Our Aviation & Transport Finance team has unrivalled expertise in specialist aircraft, aviation and transportation finance, and has advised on the full range of financing structures.

ALG leverages expertise across multiple practice areas to help clients meet increased environmental regulation as well as sustainability reporting and due diligence requirements and other related obligations.

As stewards of capital, the pension industry is key in facilitating investment in sustainable activities. That means ESG factors are critical for the investment policy and risk management systems of pension schemes.

Integrating ESG risks into prudential frameworks and addressing the protection gap are considered strategic priorities by the European Insurance and Occupational Pensions Authority (EIOPA).  

We advise clients on their sustainability disclosure obligations and support them as they revise governance frameworks, investment statements, and policy documents to reflect ESG-related requirements.

Experience

  • A broad range of UCITS management companies and AIFMs

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  • IPUT

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  • AIB

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  • (Re)insurers, intermediaries, fund managers, and other regulated entities

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  • Aircraft lessors

    on their sustainability reporting obligations and various other sustainability-related requirements.

  • Trustees and scheme sponsors

    on all aspects of pension scheme governance, regulatory compliance, investment duties and dispute resolution.