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28May2024

ITS and RTS Standards of the European Banking Authority

Posted By: DEVLHON Consulting

What are ITS and RTS standards?

ITS (Implementing Technical Standards) and RTS (Regulatory Technical Standards) are two types of standards issued by European regulatory authorities, such as the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA). These standards play a crucial role in the consistent implementation and application of financial legislation within the European Union.

Implementing Technical Standards (ITS):

– ITS are detailed technical standards developed by regulatory authorities to implement specific provisions of EU financial regulations.

– They provide specific guidance on how financial institutions and competent authorities should implement regulatory requirements.

– ITS often describe calculation methods, reporting formats, operational procedures, and other technical details necessary for regulatory compliance.

– ITS can be updated or revised based on legislative changes or the needs of the financial sector.

Regulatory Technical Standards (RTS):

– RTS are another type of technical standards issued by European regulatory authorities.

– Unlike ITS, which focus on practical implementation, RTS specify the regulatory requirements themselves, providing specific details and rules that financial institutions must follow.

– RTS often provide precise instructions on how to comply with general legislative requirements established in European directives.

– They are often published after a period of public consultation and dialogue with stakeholders to ensure they are feasible and effective while meeting regulatory objectives.

 

In summary, ITS provide detailed guidance on the practical implementation of financial regulations, while RTS specify the regulatory requirements themselves. Together, these standards play an essential role in the harmonization and consistent implementation of financial legislation across the European Union.

Which entities are affected?

The Implementing Technical Standards (ITS) and Regulatory Technical Standards (RTS) developed by European regulatory authorities, such as the EBA and ESMA, primarily address companies in the financial sector of the European Union. This includes various actors:

Banks and financial institutions, such as asset management companies, investment firms, and credit unions, are required to comply with the technical standards issued to ensure effective and consistent regulation.

Investment firms, such as brokerage firms and trading companies, as well as portfolio management companies, must comply with the regulatory requirements set out in ITS and RTS to maintain the integrity and transparency of European financial markets.

Insurance companies, insurance brokers, and other players in the insurance industry must also comply with technical standards to ensure financial soundness and consumer protection, especially under Solvency II regulations.

Market infrastructures, such as stock exchanges, clearinghouses, and securities settlement systems, are subject to ITS and RTS to ensure the efficient and safe operation of financial markets.

Financial services companies, such as payment service providers and crowdfunding platforms, are also affected by technical standards depending on the nature of their activities and their regulatory obligations.

 

In conclusion, the ITS and RTS issued by European regulatory authorities apply to a wide range of actors in the EU financial sector, thereby ensuring a robust and consistent regulatory framework for the entire industry.

 

Conclusion

To conclude, the implementation of the Implementing Technical Standards (ITS) and Regulatory Technical Standards (RTS) issued by European regulatory authorities is a crucial process for financial sector companies operating within the European Union. These standards define specific regulatory requirements and provide detailed guidance on how to comply with EU financial legislation.

To implement these standards, companies must first analyze and understand the applicable requirements, assess the impact on their operations, design appropriate compliance solutions, implement them, test and validate the changes, and finally, continuously monitor and update the compliance solutions based on regulatory developments.

This process requires a methodical approach, close collaboration between various internal and external stakeholders, and effective change management to ensure a smooth transition. By following these steps, companies can ensure regulatory compliance and contribute to maintaining the integrity and stability of the European financial system.

 

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23May2024

A New Boost for African Businesses and Trade

Posted By: DEVLHON Consulting

$70 Million Risk-Sharing Agreement: A New Boost for African Businesses and Trade

The African Development Bank (AfDB) and Banque Centrale Populaire (BCP) recently signed a $70 million risk-sharing agreement (RSA). This strategic agreement aims to stimulate private sector financing and boost trade across the African continent, with a particular focus on financial inclusion and support for small and medium-sized enterprises (SMEs).

 An Agreement to Strengthen Local Banks

The partnership between the AfDB and BCP allocates a global risk limit to local African banks. This enables them to more effectively support economic operators, particularly SMEs, which are the driving force of economic growth in Africa. By facilitating access to financing and strengthening external trade capacities, this agreement is expected to catalyze nearly €200 million in trade exchanges, contributing to a positive economic dynamic.

 Supporting Growth and Competitiveness

According to Mohamed El Azizi, Director General of the AfDB for North Africa, this partnership aims to “unlock the potential of businesses that believe in their continent, invest in it, and create added value and jobs.” Achraf Tarsim, AfDB’s country manager for Morocco, added that this agreement includes objectives to diversify production capacity, enhance competitiveness, and create new job opportunities in Morocco.

 A Model of South-South Collaboration

Kamal Mokdad, Director General of BCP and international operations, emphasized that this new agreement represents an ideal model of South-South collaboration. It offers a comprehensive solution tailored to the development needs of pan-African trade and Africa’s trade with the rest of the world. In addition to providing financing solutions, the agreement facilitates the support of commercial transactions of African businesses and promotes better integration of local banks into the international financial system.

 Strengthening Trade Capacities

This new RSA will further strengthen BCP’s commitment to financing trade transactions in Africa. It provides BCP with the opportunity to support its clientele and strengthen its relationships with local African banks, which are increasingly facing challenges related to the decline in financing lines and confirmations from foreign correspondents more effectively.

 A Shared Vision for Sustainable Development

The partnership between the AfDB and BCP reflects a shared vision of promoting sustainable economic growth and inclusive development in Africa. By empowering SMEs and strengthening trade capacities, this agreement contributes to the broader goal of economic resilience and prosperity across the continent.

In conclusion, this $70 million risk-sharing agreement between the AfDB and BCP marks a significant step towards a more robust and inclusive economic future for Africa. By supporting SMEs and facilitating trade, it paves the way for sustainable growth and enhanced integration of African economies into the global financial system.

 

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Sources :

https://www.groupebcp.com/fr/GBP_Communiques/CP-la-BCP-BAD-signent-un-accord-de-partage-de-risques-de-70-millions.pdf

https://www.zonebourse.com/cours/action/BANQUE-CENTRALE-POPULAIRE-6498628/actualite/Banque-Centrale-Populaire-LA-BANQUE-AFRICAINE-DE-DEVELOPPEMENT-ET-LA-BANQUE-CENTRALE-POPULAIRE-SI-46781624/

https://www.tradefinanceglobal.com/posts/afdb-and-bcp-sign-70m-agreement-to-boost-private-sector-financing-in-africa/

22May2024

IFC and Ecobank Transnational Incorporated Partner in Africa

Posted By: DEVLHON Consulting

IFC and Ecobank Transnational Incorporated Partner to Support Trade Finance in Seven African Countries

About IFC

A member of the World Bank Group, IFC is the largest global development institution focused on the private sector in emerging markets. IFC operates in more than 100 countries, using its capital, expertise, and influence to create opportunities in developing countries.

About Ecobank Group

Ecobank Group, or Ecobank Transnational Incorporated, is a private pan-African financial services group with unrivaled African expertise. Present in 35 sub-Saharan African countries as well as in France, the UK, the UAE, and China, Ecobank offers a comprehensive range of banking products and services to over 32 million customers.

 

As part of their efforts to promote trade and stimulate economic growth in Africa, the International Finance Corporation (IFC) today announced the establishment of trade finance facilities in partnership with seven subsidiaries of Ecobank Transnational Incorporated (ETI). This $140 million initiative aims to strengthen the trade finance operations of these subsidiaries, located in Burkina Faso, Cameroon, Côte d’Ivoire, Ghana, Malawi, Mali, and Togo.

The announcement was made at the Africa CEO Forum in Kigali, an event that brings together business leaders, policymakers, and investors to discuss crucial economic and social issues for the continent. This new trade finance facility is part of IFC’s broader program, the Africa Trade and Supply Chain Finance Program (ATRI), which is endowed with $1 billion and aimed at supporting the development of regional trade in Africa.

The partnership with IFC will leverage ETI’s extensive African footprint, facilitating the development of new trade partnerships for local businesses. By strengthening trade lines, this initiative will help reduce the continent’s reliance on imports and foster more autonomous and sustainable economic development.

 

Essential Support for SMEs and Intra-African Trade

Alain Nkontchou, Chairman of the Board of Directors of Ecobank Transnational Incorporated, emphasized the importance of this collaboration: “Our partnership with IFC testifies to our strong relationship with an important and longstanding partner. Establishing this global trade finance program reinforces Ecobank’s goal of stimulating intra-African trade and supporting small and medium-sized enterprises (SMEs) to engage confidently in cross-border trade.” By removing financial barriers, Ecobank will be able to use its borderless payment platform and various solutions to help businesses take advantage of the African Continental Free Trade Area (AfCFTA) single market.

Sérgio Pimenta, IFC’s Vice President for Africa, added, “IFC’s renewed partnership with the Ecobank Group will facilitate access to finance for businesses in Africa, support economic growth, and boost job creation.” Indeed, this partnership will enable IFC to support small businesses, particularly in environments where obtaining trade finance is often challenging.

 

Advisory Services to Strengthen Capacities

As part of this partnership, IFC will also provide advisory services to Ecobank and its subsidiaries. The aim is to help these banks enhance their support for SMEs and increase access to finance for businesses owned or led by women. This support will focus on strengthening the internal capacities of the banks to better serve this essential clientele for local economic development.

A Solid Partnership History

The relationship between IFC and Ecobank is not new. Since 1993, the two institutions have collaborated to support trade, business growth, and entrepreneurship in Africa. IFC’s Global Trade Finance Program (GTFP) has played a crucial role by providing guarantees to mitigate risks in new or challenging markets. To date, IFC has issued guarantees worth more than $100 billion globally, including $3.5 billion in Africa for the 2023 fiscal year.

 

Through this strategic partnership, IFC and Ecobank intend to strengthen their support for intra-African trade, promote economic growth, and encourage entrepreneurship across the African continent.

 

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Sources :

https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=28172

https://kilimokwanza.org/international-finance-corporation-ifc-and-ecobank-transnational-incorporated-support-trade-finance-in-seven-african-countries/

https://ecobank.com/group/news-and-media?news=20240517055007274gbxpazgw87

21May2024

Marsh revolutionizes clean energy investment

Posted By: DEVLHON Consulting

Marsh revolutionizes clean energy investment in the United States with a new tax insurance solution.

In a bold move to drive renewable energy growth in the United States, Marsh has announced the launch of its Tax Investment Default Insurance. This innovative solution aims to unlock more capital for investments in federal tax credits tied to clean energy projects in the country.

Under the Inflation Reduction Act of 2022, which introduced new tax incentives to promote renewable energy project development, developers now have the option to transfer future tax credits to investors without needing to take a direct stake in the project.

This transfer enables developers to generate liquidity to support early-stage project development, while buyers, typically financial institutions, benefit from future tax credits to offset their federal taxes.

However, until now, project lenders have imposed strict financial strength criteria on prospective tax credit investors, limiting access to high-quality capital and excluding many investors who do not meet these requirements.

Enter Marsh’s Tax Investment Default Insurance. This new solution aims to protect developers against the risk of default if a tax credit investor fails to honor their financial obligations once the credits are generated.

David Kinzel, Senior Vice President of Marsh for Structured Credit & Political Risk, emphasized the importance of this initiative: “The transferability of tax credits plays a crucial role in the development of the renewable energy market by offsetting the high upfront costs of constructing solar, wind, and other projects.”

“Marsh’s Tax Investment Default Insurance opens up new opportunities by allowing a wider range of investors to participate in the growth of this critical sector.”

This launch comes amidst a significant increase in the number of Marsh clients purchasing tax insurance policies to protect their investments in renewable energy tax credits against the risk of reduction or non-recognition of credits by tax authorities.

With this new solution, Marsh reaffirms its commitment to innovation in the financial sector and its dedication to supporting the transition to a cleaner and more sustainable economy.

 

Sources :

https://www.tradefinanceglobal.com/posts/marsh-to-boost-us-clean-energy-investments-with-new-tax-insurance-solution/

https://www.marsh.com/en/services/trade-credit/expertise/tax-investor-default-insurance.html

16May2024

Mercore and Tradeable pioneer digital bills of exchange in Africa

Posted By: DEVLHON Consulting

Mercore and Tradeable complete their first digital bill of exchange transaction in Africa, supporting trade between Kenya and Belgium

Mercore, the global trade-focused fintech group, in collaboration with Tradeable House Africa, announced today that it has completed a receivables purchase transaction backed by digital bills of exchange. The finance facility will support a Kenyan producer of organic pesticides growing its sales into Belgium and the wider European Union. The deal is Mercore’s first digital negotiable instrument-backed facility to execute in Africa, and there are several more in the pipeline working together with Tradeable as its strategic partner in the region.

How it works

Mercore enabled the Kenyan supplier and Belgian buyer to generate and sign the digital bills of exchange (DBE), utilizing Mercore’s digital execution platform (powered by trace:original). The financing arm of the group, Mercore Capital, working together with its Africa trade facilitation partner, Tradeable House Africa, thereafter, purchased the DBEs under a ‘Digital Receivables Finance Agreement’ drafted by Sullivan & Worcester UK LLP. The DBEs were executed under English law leveraging the recently enacted Electronic Trade Documents Act 2023. The underlying DBEs also included several of the International Trade & Forfaiting Association’s (ITFA) suggested clauses from the 2023 Addendum to the ITFA Digital Negotiable Initiative’s Handbook.

Why it matters

The use of digital payment instruments, such as this DBE, enables parties to execute quicker (typically same day) at lower costs. A DBE is also a more sustainable alternative to traditional paper-based negotiable instruments which, in turn, helps to drive greater financial inclusion – something that Mercore is committed to. Additionally, with many of the typical paper-based processes having been significantly challenged in recent times (COVID, delivery delays, strikes, etc), electronic execution greatly improves operational resilience and minimizes disruption.

Anthony Wadsworth-Hill, Co-founder, DCEO & COO of Mercore said: “Mercore is delighted to execute this ‘digital bill of exchange’ transaction between Kenya and Belgium, leveraging one of the UK’s best exports, ‘English law’. We relentlessly strive to improve financial inclusion for SMEs and those companies transacting with developing markets. With this facility, we are supporting both of those areas and helping to close the $2.5 trillion global trade finance gap. We look forward to continued collaboration with our industry partners and supporting existing and new customers with their trade financing requirements going forward. This is exciting progress, and it’s just the beginning.”

 

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Sources :

https://www.gtreview.com/news/fintech/mercore-seals-first-digital-bill-of-exchange-deal-in-africa/

https://enigio.com/post/mercore/

15May2024

Joe Biden Increases Tariffs on Chinese Products

Posted By: DEVLHON Consulting

Joe Biden Increases Tariffs on Chinese Products: A Risky Move in an Election Year

In a bold move, American President Joe Biden has announced a series of tariff increases on imports from China, estimated at $18 billion. This decision, affecting key sectors such as electric vehicles, semiconductors, and medical products, risks escalating tensions with Beijing, particularly in this election year as Biden seeks to solidify his support.

The White House maintains the customs duties established by the previous administration of Donald Trump while increasing some others. This decision is justified by the “unacceptable risks” that, according to them, Chinese trade practices pose to the economic security of the United States, characterized by export subsidies and unfair practices.

The products targeted by these increases include a diverse range, from steel and aluminum to semiconductors and medical equipment. This strategy, according to Lael Brainard, National Economic Council adviser at the White House, aims to counter Chinese strategies that, she believes, favor Chinese growth at the expense of other economies.

However, this initiative risks having repercussions not only on Sino-American relations but also on the American electorate, already sensitive to economic issues. According to a Reuters/Ipsos poll, Joe Biden struggles to convince voters of the effectiveness of his economic policy, while his political opponent, Donald Trump, enjoys a certain advantage in this area.

Analysts point out that the immediate impact of these tariff increases could be relatively limited, given the relatively small share these products represent in global trade. However, in the long term, these measures could influence economic and political dynamics between the two superpowers.

As Biden seeks to redirect American trade policy, this decision reflects a departure from the pro-free trade policies that have long prevailed in Washington. With this announcement, the American administration sends a strong message to Beijing, while taking the risk of causing disruptions in global markets and eliciting retaliatory reactions from China.

In conclusion, this escalation in trade tensions between the United States and China illustrates the complex challenges facing Joe Biden’s economic policy in this election year.

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Sources :

https://www.tradefinanceglobal.com/posts/biden-announces-18b-tariff-hikes-chinese-imports/

https://investir.lesechos.fr/marches-indices/economie-politique/joe-biden-releve-les-droits-de-douane-sur-des-milliards-de-dollars-de-produits-chinois-2094639#:~:text=Les%20nouvelles%20mesures%20toucheront%2018,a%20d%C3%A9taill%C3%A9%20la%20Maison%20Blanche.

14May2024

IFC and Egypt: Historic $100 Million Financing Agreement

Posted By: DEVLHON Consulting

IFC and Egypt: Historic $100 Million Financing Agreement Fostering Women’s Entrepreneurship

During the recent “IFC Day in Egypt,” a remarkable agreement was announced, showcasing joint commitment to economic development and women’s empowerment in the country. Through this agreement, the International Finance Corporation (IFC) and Egypt have pledged substantial financing of $100 million, with a particular focus on women-led businesses.

 

The signing ceremony, presided over by Rania Al-Mashat, Egyptian Minister of International Cooperation, was the highlight of the day, attended by high-level government officials, business leaders, and representatives from the private sector. This event underscored the strategic importance of bolstering the private sector to drive Egypt’s sustainable economic growth.

 

The financing agreement between the IFC and the Bank of Cairo represents a significant commitment to small, medium, and micro-enterprises in the country, with a special allocation of $50 million earmarked for women-owned enterprises. This ambitious initiative aims to create an enabling environment for female entrepreneurs, thereby strengthening Egypt’s economic and social fabric.

 

Concurrently, a consultancy agreement was ratified with the General Authority for Comprehensive Health Insurance, demonstrating ongoing commitment to improving healthcare services in the country. This measure is part of a broader strategy to ensure universal coverage and quality healthcare for all Egyptians.

 

The announcement of this agreement comes eight months after a previous partnership between the IFC and the Bank of Cairo, aimed at enhancing the latter’s climate financing strategy. This new agreement underscores the shared commitment to promoting inclusive and sustainable economic development, aligned with national and international sustainable development goals.

 

Since its inception in Egypt, the IFC has played a crucial role in supporting the private sector, with approximately $9 billion in financing and investments. In addition to financing, the IFC has also provided consultancy services worth around $34 million, highlighting its long-term commitment to the country’s economic and social development.

 

In conclusion, this historic agreement between the IFC and Egypt represents a major step forward in promoting women’s entrepreneurship and inclusive economic development. By investing in women-led enterprises and strengthening healthcare services, this agreement will contribute to creating a more promising and equitable future for all Egyptians.

 

 

Sources :

https://www.tradefinanceglobal.com/posts/ifc-and-egypt-announce-100m-financing-deal-50m-earmarked-women-owned-businesses/

https://www.agenceecofin.com/finance/1305-118623-egypte-100-millions-de-la-sfi-pour-soutenir-le-commerce-et-des-pme-dirigees-par-des-femmes

 

10May2024

BAFT Launches New Women in Transaction Banking Initiative

Posted By: DEVLHON Consulting

BAFT Launches New Women in Transaction Banking Initiative at 2024 Global Annual Meeting

The global financial services association BAFT has announced the launch of its groundbreaking Women in Transaction Banking (WTB) initiative during its 2024 Global Annual Meeting in Orlando. This new initiative aims to promote gender diversity and inclusion within the transaction banking sector by providing networking, mentorship, and professional development opportunities specifically tailored for women.

In an inspiring address, Deepa Sinha, Vice President of Payments and Financial Crimes at BAFT, emphasized the importance of gender diversity in driving innovation and success in the transaction banking sector. “The launch of the Women in Transaction Banking initiative reaffirms our commitment to advancing the careers of women professionals in our industry and creating a more inclusive and equitable future,” said Sinha.

BAFT’s Global Annual Meeting is a premier event that brings together industry leaders, policymakers, and stakeholders from around the world to discuss trends, challenges, and opportunities in the field of transaction banking. The WTB initiative will be a key feature of this meeting, providing a platform to connect women in the transaction banking sector and enhance their industry-relevant skills.

The program will include a series of networking events, webinars, and a robust mentorship program designed to support the professional development of women in the banking sector. Additionally, WTB will collaborate with member institutions and industry partners to promote gender equality throughout the transaction banking ecosystem.

“We are excited to launch the Women in Transaction Banking initiative and look forward to working closely with our members and partners to advance the representation and leadership of women in our industry,” said Sinha, expressing enthusiasm for this ambitious initiative.

This initiative marks a significant step in promoting gender equality in the transaction banking sector, highlighting BAFT’s commitment to diversity and inclusion. As the transaction banking sector continues to grow and evolve, the Women in Transaction Banking initiative will play a crucial role in creating a more inclusive and equitable environment for all individuals working in the field.

 

 

Sources : https://www.tradefinanceglobal.com/posts/baft-announces-new-women-in-transaction-banking-initiative-2024-global-annual-meeting/

https://www.baft.org/press-releases/baft-launches-new-women-in-transaction-banking-initiative-at-2024-global-annual-meeting/

 

3May2024

CSRD: ESRS Standards Redefine the Landscape of Extra-Financial reporting

Posted By: DEVLHON Consulting

The Corporate Sustainability Reporting Directive (CSRD) is set to replace the Non-Financial Reporting Directive (NFRD) in 2024, bringing significant changes for companies subject to extra-financial reporting obligations. Extra-financial reporting, like the CSR directive, serves as a mechanism for companies to report on their performance in areas such as the environment, social issues, and governance, in addition to their usual financial performance. At the heart of this transition are the ESRS (European Sustainability Reporting Standards).

 

What Are ESRS?

ESRS (European Sustainability Reporting Standards) are emerging as a unified framework for extra-financial reporting in the European Union. Established by the EFRAG (European Financial Reporting Advisory Group) under the CSRD directive, these standards aim to harmonize ESG (Environmental, Social, and Governance) reporting criteria for all European companies.

 

The importance of ESRS in standardizing extra-financial reporting is undeniable. This standardization provides a consistent framework for communicating the ESG performance of European companies, thereby enhancing comparability and reliability of information. By unifying reporting practices, ESRS contribute to strengthening transparency and credibility of ESG data, addressing the growing needs of investors and other stakeholders seeking to assess the social and environmental impact of companies.

 

The implementation of ESRS represents a significant milestone in harmonizing extra-financial reporting practices across Europe, offering a common framework for assessing and communicating the ESG performance of companies.

 

Which Companies Are Affected?

The new ESRS standards, established under the CSRD directive, significantly broaden the scope of extra-financial reporting, impacting a diversity of companies. The CSRD aims to enhance transparency regarding environmental, social, and governance (ESG) performance for a substantial number of economic actors. Here are the main categories of companies affected by these new requirements:

 

Large Enterprises:

Large enterprises, characterized by their size and significant economic impact, are among the primary targets of the CSRD. To be affected, they must meet at least two of the following criteria: have more than 250 employees, achieve an annual turnover exceeding 50 million euros, or have a total balance sheet exceeding 25 million euros.

 

Listed SMEs:

Small and medium-sized enterprises (SMEs) listed on EU regulated markets are also affected by these new standards. To be subject to the requirements, they must meet at least two of the following criteria: have more than 10 employees, achieve an annual turnover exceeding 900,000 euros, or have a total balance sheet exceeding 450,000 euros.

 

Non-European Companies Operating in the EU:

Companies established outside the European Union but operating within its territory are also included in the scope of the CSRD. They are affected if their turnover in Europe exceeds 150 million euros and if they have at least one subsidiary or branch within the EU.

 

These criteria, defined under the CSRD, aim to ensure broad and inclusive coverage of the European economic landscape, promoting increased transparency and better management of ESG risks and opportunities for all relevant stakeholders.

 

Focus on the 12 ESRS Standards

Cross-Cutting Standards: ESRS 1 and ESRS 2

These standards encompass general criteria for extra-financial reporting. They aim to provide an overview of the company’s sustainability performance. The annual report should address the company’s strategy and its objectives for improving its ESG performance.

 

Environmental Dimension: ESRS E1 to E5

Environmental standards cover a wide range of topics, from climate change to biodiversity, pollution, and resource use. Companies must disclose their greenhouse gas emissions, actions to reduce them, and practices aimed at minimizing pollution risks.

 

Social Dimension: ESRS S1 to S4

This dimension focuses on the social aspects of the company, including the workforce, workers in the value chain, communities affected by activities, and consumers. HR data, health and safety practices, and efforts to promote inclusion and equity within the company are among the elements to be disclosed.

 

Governance Dimension: ESRS G1

This standard focuses on business conduct and corporate governance practices. It requires transparency and the establishment of internal control systems to ensure integrity practices.

 

Conclusion

In the complex spectrum of financial and extra-financial regulation, the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) play a crucial role. The transition from the Non-Financial Reporting Directive (NFRD) to the CSRD has introduced significant changes in the landscape of European companies’ extra-financial reporting.

 

The involvement of the AMF and other regulatory bodies in the implementation of the CSRD underscores the growing importance of sustainability in the business environment. Companies are encouraged to delve deeply into regulatory texts, develop internal expertise, and adapt their data collection and production tools to meet ESRS standards.

 

In this perspective, it is important for companies to actively prepare for CSRD reporting obligations by identifying relevant criteria, establishing appropriate roadmaps, and developing robust internal controls. By adopting a proactive approach and a thorough understanding of ESRS standards, companies can turn this major regulatory shift into an opportunity to enhance their ESG performance and commitment to sustainability.

 

In summary, the CSRD and ESRS represent a major turning point in the field of extra-financial reporting, offering a harmonized and structured framework for European companies. By integrating insights from various parts of this discussion, companies can better understand the challenges and opportunities associated with this crucial regulatory evolution, while strengthening their positioning in terms of sustainability and social responsibility.

2May2024

“UKEF Boosts SMEs: Revolutionizing British Exports”

Posted By: DEVLHON Consulting

UK Export Finance (UKEF) aims to reshape the landscape of British exports by further supporting SMEs.

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UK Export Finance (UKEF) recently unveiled an ambitious business plan for the 2024-2029 period, highlighting its commitment to actively support small and medium-sized enterprises (SMEs) in the UK in their overseas expansion. With a bold vision, the agency has pledged to support 1,000 SMEs per year by the end of the decade, representing a significant increase from current levels.

 

This strategic plan also includes significant financial commitments, including facilitating £12.5 billion in export contracts and providing £10 billion in financing for clean growth by 2029. These measures reflect UKEF’s commitment to encouraging businesses to adopt more sustainable and environmentally friendly business practices.

 

Increased support for SMEs is particularly important, as these businesses often struggle to obtain commercial financing and access international markets compared to their larger counterparts. Despite a already high number of SMEs benefiting from UKEF support, the agency acknowledges that there is still a long way to go to achieve its ambitious goal of supporting 1,000 SMEs each year.

 

One of the main barriers to overcome is the limited appetite of private lenders for commercial risk, making it crucial to develop partnerships with financial institutions to offer simpler and more flexible solutions to SMEs across the UK. UKEF also plans to integrate non-bank financial institutions specializing in SME financing to strengthen its support for SMEs.

 

Additionally, UKEF plans to modernize its services by introducing digital and automated solutions, with faster response times, to facilitate SME access to its services. This initiative aims to simplify and expedite the financing application process, thus providing more effective support to British businesses in their international expansion.

 

UKEF’s business plan also emphasizes the importance of supporting “underserved” businesses, particularly those owned by women and minorities. This approach aligns with a global trend to promote inclusivity and diversity in the business sector, recognizing the untapped potential of these businesses to contribute to the national economy.

 

Finally, UKEF’s commitment to clean and sustainable growth is underscored by its goal of providing £10 billion in financing for environmentally friendly projects by 2029. This direction reflects the transition to a greener economy and responds to increasing pressures from climate change activists.

 

In summary, UKEF’s new business plan marks an important step in reshaping the landscape of British exports, with a focus on increased support for SMEs, promoting environmental sustainability, and including marginalized businesses. These initiatives aim to enhance the competitiveness and resilience of the British economy on the international stage, paving the way for sustainable and inclusive long-term growth.

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Sources :

https://www.gtreview.com/news/europe/uk-export-finance-unveils-ambitious-new-target-for-sme-support/

https://www.gov.uk/government/news/ukef-unveils-plans-to-help-exporters-win-125-billion-in-new-business-by-2029

 

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