Maples Group

ESG & SUSTAINABLE FINANCE

The Maples Group is fully committed to the goals and initiatives of sustainability. We are highly focused on the impact that environmental, social and governance factors ("ESG") and responsible investment will have on the financial services sector. We offer end-to-end solutions for international clients and institutional investors seeking to achieve their ESG objectives at both an investment and operational level.

GLOBAL ESG ADVISORY GROUP

The demand for investments with strong ESG credentials is continually increasing, with investors demanding a move towards more ethical and responsible investment. Asset managers are responding to these demands, and integrating environmental, social and governance ("ESG") considerations into their investment approaches. Global ESG assets under management is on track to exceed US$50 trillion by 2025, the equivalent of one-third of all worldwide investable AUM (Source: Bloomberg Intelligence).
 

Our global ESG Advisory Group is a dedicated, multi-disciplinary team of ESG and sustainable finance experts drawn from our global Banking, Finance, Corporate, Funds & Investment Management, Dispute Resolution & Insolvency, Projects & Construction, Property, Tax and Regulatory & Financial Services Advisory teams. Our multi-jurisdictional capabilities ensure that we have exposure to global ESG trends and sustainable finance developments. It also enables us to draw on the experiences and expertise of the entire Maples Group, to develop a uniform and consistent approach to ESG initiatives for our global clients.
 

Our ESG Advisory Group collaborates with leading international clients and institutional investors to achieve their ESG objectives at both an investment and operational level.

We have active partnerships with key external stakeholders and identify those ESG players who share our interests and goals. For example, along with the Frankfurt School of Finance and Management and the Environmental Liability Solutions Europe Ltd, we co-authored a Do No Significant Harm ("DNSH") Handbook to assist asset managers on how to identify good practices and provide guidance on the evaluation and reporting of the EU sustainable finance regulation's ‘do no significant harm’ principle. You can read more on the DNSH Handbook below.
 

Our ESG Advisory Group continues to engage with governments, regulators and industry associations, in many of the jurisdictions in which we operate, to help shape the financial services industry's response to developments in ESG and sustainable finance regulation. 

SFDR IMPACT ANALYSIS

A Comprehensive Review of ESG Integration in Europe

SFDR only became fully effective on 1 January 2023 and our SFDR Impact Analysis assesses how it has affected the European asset management landscape, providing a practically focused assessment on the current state of ESG integration in Europe.
 

Our Analysis examines the impact of SFDR on product design, asset allocation and fund distribution, providing valuable peer analysis on SFDR approaches taken to date.
 

This first edition specifically focuses on Ireland, examines the current state of play of ESG integration in Ireland and identifies developing trends in the European sustainable space.

DO NO SIGNIFICANT HARM HANDBOOK

The Do No Significant Harm principle ("DNSH") is a set of criteria featuring in both the European Union's Sustainable Finance Disclosure Regulation and the Taxonomy Regulation.
 

The Do No Significant Harm Handbook enables asset managers to evaluate DNSH criteria using a practical case study. It demonstrates how developers of large construction and infrastructure projects can, at minimal cost, greatly improve their DNSH and sustainability-related ESG disclosures, thereby enabling institutional investors to incorporate these projects into their taxonomy-aligned investment portfolios.

ESG DATA SOLUTIONS

ESG compliance has become interwoven with the field of fund management. As investors demand green and carbon-neutral investment products, asset managers need solutions that can enhance transparency and manage risk.
 

Data is at the heart of ESG

Whether used by funds to inform investment strategies, monitor decisions, report to investors or meet regulatory requirements, data is at the heart of ESG. To complement our full suite of custom reporting solutions, we have implemented a leading ESG data and reporting system from Trucost, part of S&P Global. This combination of proprietary and best-of-breed systems enables us to deliver tailored solutions that provide comprehensive company analytics and in-depth reporting to create transparency for stakeholders and help manage risk.

FUND MANAGEMENT COMPANY SOLUTIONS

MPMF Fund Management (Ireland) Limited ("MPMF"), the Maples Group's Central Bank of Ireland authorised UCITS management company and alternative investment fund manager, provides services to alternative investment funds ("AIFs") and UCITS funds that meet the on-going obligations under the Alternative Investment Fund Managers Directive ("AIFMD") and UCITS regulation.
 

MPMF offers solutions to clients through an experienced team with significant expertise in risk management, finance, operations and regulatory compliance. MPMF also utilises a combination of proprietary and industry-leading technology for risk and regulatory reporting.
 

As part of our Fund Management Company Solutions offering, MPMF also oversees ESG leading practices and adherence to ESG requirements including the Sustainable Finance Disclosure Regulation ("SFDR") for article 6, article 8 and article 9 funds In addition to the provision of ESG and regulatory expertise, MPMF can provide clients with ESG and SFDR data and reporting solutions as well as ESG certifications, allowing investment managers to execute their own SFDR-compliant investment strategy.
 

ESG Platform ICAV

To further support article 8 and article 9 funds, we have established the Maples Group ESG Platform ICAV ("the Platform"), dedicated to hosting sustainable funds looking for distribution solutions in the European Union. The Platform is an Irish Collective Asset Management Vehicle ("ICAV"). It is an umbrella fund, specifically structured to host environmental, social, governance and sustainability-focused funds. The Platform is managed and promoted by MPMF.
 

The Platform offers a turnkey solution for clients looking to launch a segregated EU SFDR-compliant Article 8 or Article 9 sub-fund, allowing them to take advantage of the high demand for ESG focused funds in Europe. EU and non-EU clients looking for a flexible solution for SFDR compliance and European distribution can take advantage of an established fund platform with regulatory approval and legal agreements already in place.
 

The Platform affords clients access to industry leading ESG practices and service providers for ESG advisory, fund management, fund distribution, operational and reporting solutions . This includes exclusive access to a first-of-its-kind solution for independent certification of a fund's and manager's ESG strategies.
 

Independent ESG certification

To date, the industry has relied on self-certification and reporting by funds and managers as it relates to ESG criteria and true transparency into these factors has been difficult to achieve. Developed in partnership with leading compliance and risk management firm K2 Integrity, the Platform is able to deliver a detailed review of qualitative and quantitative metrics to verify that a fund and manager is compliant with ESG best practices and is aligned with applicable regulations. As investor expectations and regulatory requirements continue to evolve, this solution helps to mitigate certain risks of greenwashing and puts managers a step ahead in validating and quantifying their ESG initiatives while delivering unmatched value for investors.

ESG THOUGHT LEADERSHIP

View our latest ESG & Sustainable Finance collateral, articles, guides and webcasts: 

ESG Thought Leadership

GREENWASHING LITIGATION & ADVISORY

Advising on the laws of the BVI, the Cayman Islands and Ireland, our global Dispute Resolution & Insolvency team, working in tandem with our ESG specialists, can provide legal advice on managing and mitigating against greenwashing risk and regulatory sanction.
 

Overstated ESG credentials ("Greenwashing")

International regulators have recently increased their focus on the marketing of investment funds, bonds and other financial products as being environmentally sustainable or ESG friendly investments, to ensure that investors are not being mis-sold these products on the basis of overstated ESG credentials ("greenwashing").
 

Both the issuers of such financial products and the board of directors (in case of investment funds), must understand their duties and responsibilities with respect to sustainability-related disclosures, in particular the obligation not to overstate or misrepresent the environmental or ESG credentials.
 

In addition, issuers and directors must be aware of the commercial risks and reputational damage, which may arise from investor actions for misrepresentation or miss-selling or regulatory sanctions for non-adherence to ESG and sustainability-related disclosures.
 

We can assist you in the design of your governance structures and operational frameworks, as well as the development of robust policies and procedures, to mitigate against greenwashing risk and the risk of regulatory sanction.
 

Given our global presence and multijurisdictional investment fund capabilities, we are recognised leaders in the field of investment fund disputes. Our litigation and investment funds lawyers work hand in hand to best represent clients subjected to investor action for greenwashing or ESG mis-selling. Our lawyers have a proven track record of success and extensive expertise in complex commercial litigation cases.
 

We focus as much on strategies designed to avoid disputes and mitigate risk as we do on active dispute resolution procedures.
 

In addition, our Regulatory & Compliance group has unrivalled experience in assisting clients with regulatory sanctions or enforcement matters. We appreciate the need to protect your commercial reputation and how such matters must be handled competently, efficiently and sensitively.

CORPORATE ESG & GOOD GOVERNANCE

Our global Corporate team provides expert legal advice on all corporate commercial transactions with ESG components.
 

With a global practice advising on the laws of the British Virgin Islands, the Cayman Islands, Ireland, Jersey and Luxembourg, the Maples Group can provide effective, cross-jurisdictional legal solutions to all the environmental, social and governance opportunities and challenges you may face.
 

We advise on many complex domestic and international transactions with ESG-related aspects. Leveraging the technical strength and depth of experience of our lawyers across our global offices, our Corporate team works in tandem with our ESG Advisory Group and, where necessary, draws upon the expertise of our specialist commercial lawyers including finance, anti-trust, employment, financial services, intellectual property, real estate, technology and telecoms, trusts and tax.
 

We advise shareholders and companies on ESG-related matters, across the entire range of corporate and shareholder transactions. In particular, our ESG specialists can assist in the assessment of a target portfolio company to ascertain if it maintains appropriate ESG-focused policies and procedures in line with international best practise (e.g. OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights).
 

We can assist boards and senior management teams in developing suitable ESG-focused policies, procedures and good governance frameworks, to ensure compliance with the constantly evolving ESG legislative space.