Debevoise & Plimpton LLP and Malk Partners have co-authored an authoritative new White Paper, exploring how the European Union’s Sustainable Finance Disclosure Regulation (“SFDR”) presents practical challenges for US asset managers that raise capital in Europe.
The paper, entitled “SFDR Compliance for US Funds”, tackles how and why US ESG programmes can align with SFDR.
While there is no express provision in the SFDR relating to non-EU fund managers, the European Commission has confirmed that the SFDR applies to funds marketed in the EU.
Patricia Volhard, partner at Debevoise, comments: “It is now obvious that US managers raising funds in Europe who want to promote environmental or social characteristics will need to comply with SFDR, with all the disclosure, measurement and monitoring requirements that brings with it. That’s no small task – European managers have been getting to grips with the regime for some time, from its draft stages right through to implementation in 2022. This White Paper will hopefully be a useful tool in bridging that knowledge gap between European managers and their counterparts in the US.”
Brian Chmelik, Senior Vice President at Malk, comments: “US managers have long built ESG programs bespoke to their operations and LPs requirements - SFDR represents a sea change in disclosure that can impact ESG program design. Intentional thinking and advice can help strike a balance between bespoke program elements and standardized, compliant disclosure under SFDR. This White Paper should help US GPs operate ESG programs that meet LP requirements and add value to their portfolio companies.”
To access the White Paper, click here.
Malk Sustainability Partners LLC (“Malk”) guides private market firms and their portfolio companies to protect and create value through ESG management and impact investing advisory services. Malk’s experienced consultants assist investors across private market strategies with all aspects of ESG in the fund and investing lifecycle. More than 100 clients representing $1tn in assets under management trust Malk to help them develop and execute value accretive ESG programs.
Debevoise and Plimpton
Debevoise & Plimpton LLP (“Debevoise”) is a premier law firm with market-leading practices, a global perspective and strong New York roots. Clients look to Debevoise to bring a distinctively high degree of quality, intensity and creativity to resolve legal challenges effectively and cost efficiently. At Debevoise, approximately 800 lawyers work in nine offices across three continents, within integrated global practices, serving clients around the world.