Sustainable finance

Nowadays, it's almost impossible to open a newspaper without encountering an article on 'sustainability'. Whether it's in the context of the financial services industry, the broader economy, or society as a whole, sustainability has become a critical issue. In recent years, it has gained significant traction and is now recognised as a necessity rather than just a trend.

Over the past decade, the focus on environmental issues has grown exponentially, resulting in various global commitments and initiatives aimed at transforming current institutional, economic, and financial models.

This training focuses on the implications of sustainable finance, particularly SFDR, on risk management for financial institutions, including banks and Asset Managers (AM). It aims to address how ESG factors, climate change, and broader sustainability considerations reshape the risk landscape, affecting both operational and strategic decision-making processes.

By the end of this training, participants will:

• develop regulatory knowledge: gain a comprehensive understanding of the SFDR, including its interaction with the EU Taxonomy and CSRD. Participants will be able to navigate through SFDR Level 1 and Level 2 requirements and understand the obligations linked to different products
• understand the recent updates: understand the most recent regulatory updates and their impacts on the sustainable finance landscape, including guidelines from the ESAs, CSSF actions, and the evolving disclosure requirements.
• master practical implementation: being able to apply ESG principles practically in their organisation's reporting, investment decision-making, and compliance frameworks, ensuring both alignment with regulatory obligations and effective communication to stakeholders.
• customised learning: access optional modules focusing on sustainable finance practices tailored to different types of financial institutions: funds, ManCos, banks, and insurance.

Introduction to sustainable finance and ESG regulations

• Overview of sustainable finance: SFDR, EU Taxonomy, and CSRD.
• Why SFDR was introduced and its role in the EU action plan for sustainable finance.

SFDR framework

• Level 1 & 2 requirements: timeline, key milestones, and disclosure requirements at entity and product levels, including data challenges.
• Product classification: articles 6, 8, 8+, and 9 - Types of disclosures required for each.
• Principal Adverse Impacts (PAI): entity vs. product-level disclosures, DNSH principle, and sustainability factors.

EU Taxonomy

• How EU Taxonomy aligns with SFDR for clear definitions and reporting obligations.

Latest Regulatory Updates

• Recent developments: key updates impacting SFDR, including ESA publications, ESMA guidelines, and CSSF actions.
• What’s coming: updates on SFDR Regulatory Technical Standards (RTS), future timelines, and regulatory changes.

Optional sector-specific modules

• Funds: UCITS and AIFMD considerations.
• Management Companies (ManCos): ESG integration in decision-making and reporting.
• Banks (MiFID): ESG in client advisory processes and MiFID II obligations.
• Insurance (IDD): meeting policyholder sustainability preferences.

Practical implementation

• Case studies: real-world examples of ESG integration challenges and solutions.
• Stakeholder communication: strategies for communicating ESG initiatives effectively.
• Future trends: preparing for regulatory changes and adapting strategies.

This training is coordinated by Michael Horvath, Frederic Vonner, Kenny Panjanaden and Geoffroy Marcassoli, Partners at PwC Luxembourg.

Michael Horvath is a partner at PwC with extensive expertise in sustainable finance and the asset management industry, including both financial and real assets. Since joining PwC Switzerland in 2011 and PwC Luxembourg in 2018, he has led significant projects in regulatory audit and advisory, focusing on the asset management sector. Michael has played a key role in implementing the EU regulatory framework for sustainable finance, including SFDR, taxonomy regulation, and CSRD, as well as other regulatory initiatives such as DORA, AML/CFT, CSSF circular 18/698, and MICA. He is a certified public accountant in Switzerland and Liechtenstein and has contributed to designing compliance frameworks and operational implementations driven by regulatory changes. His notable client projects include defining target operating models for Luxembourg AIFMs, digital operational resilience planning, AML/CFT framework implementation, and ESG/sustainability process design, supported by his involvement in training and regulatory advisory.

Frédéric Vonner is a partner with over 22 years of experience managing projects and advising asset managers and securities service providers in the investment fund industry, primarily in Luxembourg. He specialises in operational excellence and regulatory compliance for UCITS and alternative funds, with a strong focus on sustainability and sustainable finance, covering strategy, compliance, and implementation. Frédéric is also an experienced trainer and course facilitator for both soft skills and technical topics. He actively contributes to ALFI and EFAMA working groups and has led numerous client projects including sustainable finance assessments, UCITS V and AIFMD implementations, depositary and GDPR assessments, fund administration reviews, and service provider rationalisation.

Kenny Panjanaden is a partner specialising in ESG and sustainable finance within the ESG Assurance practice. He leads the firm’s internal Task Force on Climate-related Financial Disclosures (TCFD) working group and has driven key discussions with regulators, government, and industry stakeholders to raise awareness in the Luxembourg market. Kenny serves on the LuxFLAG ESG Label Eligibility Committee, overseeing the attribution of labels to sustainable funds. He manages a substantial portfolio of asset management clients, including UCITS and alternative funds, and leads teams of up to 15 people. His expertise spans ESG, asset and wealth management, and alternative investments, with notable projects for clients such as Nordea, Caixabank Asset Management, Santander, Axxion, Union, and Swiss Life.

Geoffroy Marcassoli is a partner and assurance expert specialising in ESG and sustainable finance, leading PwC Luxembourg’s ESG assurance practice and the PwC EMEA ESG working group for Asset Management. He actively contributes to industry groups such as EFAMA, Invest Europe, ALFI, and LPEA. Geoffroy’s expertise encompasses regulatory gap assessments, assurance reviews of sustainability reports, and ESG KPIs across asset classes. Beyond ESG, he oversees audits of mutual funds, hedge funds, and private equity funds for global asset managers with diverse investment strategies. His client portfolio includes Goldman Sachs, JP Morgan, AQR Capital, Nuveen, and CBRE.