Work has been continuing at a steady pace in Europe to implement the package of measures set out in the European Commission's action plan on sustainable finance. In part 1 of our environmental, social and corporate governance ("ESG") series we examined the Disclosures Regulation as one of the new regulations focused on sustainability in the financial services sector. In part 2 of this series we focus on the second of these regulations, the amendments to the Benchmarks Regulation ("BMR Amendment").

The BMR Amendment introduces two new benchmark classifications, namely, EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks as two distinct categories of low carbon benchmarks. The BMR Amendment also introduces additional information which benchmark administrators need to disclose in respect not only of EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks but all other types of benchmarks.

Further parts of this series will be issued as the regulations in respect of the other measures set out in the action plan on sustainable finance are published.

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