Alternative Asset Management & Sustainability Insights

Travers Smith
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A series of regular audio briefings for the alternative asset management industry.

  1. Travers Smith's Sustainability Insights: What can (private markets) investors do about climate change?

    2d ago

    Travers Smith's Sustainability Insights: What can (private markets) investors do about climate change?

    Investors must face reality: A new report argues that a decade of disclosure targets and stewardship has failed to drive real-world decarbonisation, because technology development and government policy – not investor pressure – are the primary determinants of how quickly economies transition. Private markets have real advantages – but clear limits: A sponsors' greater agency over portfolio companies gives private markets a genuine edge, but fiduciary duties mean no manager can pursue climate goals unless it is in the interests of their LPs or consistent with a specific mandate. Policy engagement is the under-used lever: Private markets managers – closer than most to what makes a project financeable – are well placed to tell governments what conditions will attract private capital, and that expertise could be deployed more deliberately, and more often. Links: https://www.fmg.ac.uk/sites/default/files/2026-05/What-Can-Investors-Do-About-Climate-Change_final.pdf https://www.edf.org/ https://www.lse.ac.uk/global-school-of-sustainability https://collaborate.unpri.org/group/761/about https://www.bain.com/how-we-help/private-markets-decarbonization-roadmap/

    9 min
  2. Travers Smith's Alternative Insights: Governing the huge potential of AI

    May 29

    Travers Smith's Alternative Insights: Governing the huge potential of AI

    KEY INSIGHTS Governance creates value: Effective AI governance is not a compliance exercise – for private capital firms, it is a discipline central to value creation, which can be applied as rigorously to their own operations as to their portfolio companies. Humans must stay in control: An effective AI governance framework places human oversight and accountability at its core, with named individuals responsible, clear rules on data and tools, and meaningful review of every AI-generated output. Nimbleness is now essential: As technology, regulation and use cases evolve rapidly, firms must continuously adapt their AI policies – and embed a culture that empowers, even requires, staff to use AI actively while remaining alert to its risks. Links: Corporate governance | OECD Responsible-AI-Quick-Guide-for-Asset-Owners.pdf FCA, Bank of England and Treasury joint statement on frontier AI models and cyber resilience | FCA Anthropic Partners with Blackstone, Hellman & Friedman, and Goldman Sachs to Launch Enterprise AI Services Firm - Blackstone The EU AI Act – the current state of play | Travers Smith

    7 min
  3. Travers Smith's Sustainability Insights: Not less, just different: The hidden opportunity in the EU's regulatory reset

    May 15

    Travers Smith's Sustainability Insights: Not less, just different: The hidden opportunity in the EU's regulatory reset

    KEY INSIGHTS EU is not retreating: Despite framing its agenda as simplification, the EU is rebuilding its environmental product regulation to be more digital, more enforceable and, in several areas, more consequential than before. Environmental regulation offers a strategic opportunity: The EU is recasting product rules as industrial policy, with significant implications for supply chain intensive businesses, among others. Greenwashing and PFAS demand action now: Tougher rules on environmental claims and accelerating litigation risk around forever chemicals mean that consumer-facing and industrials-exposed portfolio companies cannot afford to wait for regulatory certainty before acting. Links: A Simpler, Clearer and Better Enforced EU Rulebook - European Commission Moving Parts: A Guide to the EU's Evolving Product Regulatory Landscape | Travers Smith EU's Digital Product Passport: Advancing transparency and sustainability | data.europa.eu Circular Economy - Environment - European Commission Updates to EU CBAM: Balancing climate and competitiveness | Travers Smith All news - ECHA

    8 min
  4. Travers Smith's Alternative Insights: A testing moment for private markets regulators

    May 1

    Travers Smith's Alternative Insights: A testing moment for private markets regulators

    Deregulation is gaining ground: On both sides of the Atlantic, regulators are shifting focus toward burden reduction — but concerns about increasing risks are also prominent. Systemic risk concerns are real but manageable: Legitimate questions about hidden credit problems, bank-fund linkages and the widening distribution of private markets products deserve scrutiny — but the risks are being actively monitored, and sophisticated investors are still backing the asset class with conviction. Engage now, but with eyes open: The industry has a rare opportunity to shape a more proportionate regulatory framework in both the EU and UK — but caution is required: history suggests that what enters the legislative process as simplification does not always emerge that way. Links: https://www.traverssmith.com/knowledge/knowledge-container/aifmd-ii-the-next-phase-of-eu-alternative-investment-fund-regulation/ https://www.traverssmith.com/knowledge/knowledge-container/eu-retail-investment-directive-and-regulation/ https://www.efama.org/newsroom/news/ris-reality-check-why-we-must-hit-pause-retail-investment-strategy https://www.traverssmith.com/knowledge/knowledge-container/eu-market-integration-package/ https://www.traverssmith.com/knowledge/knowledge-container/buy-side-story-the-fcas-2026-regulatory-priorities-for-the-sector/ https://www.traverssmith.com/knowledge/knowledge-container/fca-private-market-valuation-review/ https://www.sec.gov/newsroom/press-releases/2026-40-sec-cftc-jointly-propose-amendments-reduce-private-fund-reporting-burdens https://www.theguardian.com/business/2025/oct/14/jp-morgan-jamie-dimon-losses-private-credit-sector https://www.ft.com/content/5c9939bf-3c85-43b0-b605-842f24cd8753 https://www.bankofengland.co.uk/news/2025/december/boe-launches-system-wide-exploratory-scenario-exercise-focused-on-private-markets https://www.fca.org.uk/publication/regulatory-priorities/wholesale-buy-side-report.pdf

    7 min
  5. Travers Smith's Sustainability Insights: Reporting requirements still shifting

    Apr 17

    Travers Smith's Sustainability Insights: Reporting requirements still shifting

    EU and UK rules still shifting: The EU's omnibus rollback has narrowed the scope of corporate sustainability reporting, but the standards themselves remain unfinished and last-minute changes to improve alignment with international frameworks could prove contentious. SFDR reform sidelines private markets: Member states are divided on key aspects of the Commission's proposed SFDR overhaul, with engagement as an investment approach, grandfathering and category criteria all contested — and private markets concerns still largely unaddressed. Time to engage is now: Some positive signals are emerging, including Sweden's push to adapt the framework for unlisted assets and calls to extend transition periods, but private markets participants need to act quickly to shape the final rules. Links: https://www.traverssmith.com/knowledge/knowledge-container/the-omnibus-reaches-its-destination-csrd-and-cs3d-20/ https://www.responsible-investor.com/eu-weighing-last-minute-move-to-adopt-issb-sustainability-standards/ https://www.traverssmith.com/knowledge/knowledge-container/ready-set-report-the-fca-fires-the-starting-gun-on-uk-sustainability-reporting/ https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-the-uks-cautious-roll-out/ https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-six-fixes-for-sfdr-20/ https://data.consilium.europa.eu/doc/document/WK-3931-2026-INIT/en/pdf https://www.investeurope.eu/publications-policy/publications/2026/invest-europe-position-paper-on-sfdr-20/ https://doi.org/10.1093/jfr/fjac001

    8 min
  6. Travers Smith's Alternative Insights: Accountability drives culture

    Mar 20

    Travers Smith's Alternative Insights: Accountability drives culture

    In this week's issue of Travers Smith's Alternative Insights, we are looking at non-financial misconduct, and how accountability drives culture. FCA sharpens oversight: The UK regulator is finalising new rules on non-financial misconduct, extending its scrutiny beyond the office and setting clearer standards for personal and workplace behaviour. Manager accountability grows: Managers must actively prevent bullying and harassment, or risk personal liability under the Conduct Rules if they fail to act. Culture change expected: Firms can no longer dismiss poor behaviour as business as usual, with the FCA aiming to shift the conversation from 'Sexism in the City' to 'Accountability in the Office'. Links: https://www.ft.com/content/2e4df2fe-d2ae-46aa-bd00-d031a037bb44 https://www.traverssmith.com/knowledge/knowledge-container/new-fca-guidance-on-non-financial-misconduct/

    6 min
  7. Travers Smith's Sustainability Insights: The UK's cautious roll out

    Mar 6

    Travers Smith's Sustainability Insights: The UK's cautious roll out

    In this week's issue of Travers Smith's Sustainability Insights, we are looking at the UK's rollout of sustainability disclosure standards. The EU's sustainability omnibus is finally passed: The European Union has finalised its dramatic reforms to sustainability reporting rules, hitting fewer private companies and relaxing several related obligations. The UK confirms a cautious roll out: The UK’s sustainability reporting standards have been finalised, but mandatory rules are being developed that focus on proportionality and cost-benefit analysis – with more news for large private companies expected later in 2026. Sustainability remains a priority for rule makers: Both the EU and UK remain committed to sustainability as a policy priority, but now openly discuss burdens for companies as well as benefits for society. Links: https://www.consilium.europa.eu/en/press/press-releases/2026/02/24/council-signs-off-simplification-of-sustainability-reporting-and-due-diligence-requirements-to-boost-eu-competitiveness/ https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-sustainability-reforms-lack-a-convincing-theory-of-change/ https://www.gov.uk/government/publications/uk-sustainability-reporting-standards-uk-srs-s1-and-uk-srs-s2 https://www.fmg.ac.uk/isf/publications/special-papers/do-climate-disclosure-mandates-help-decarbonise-economy https://www.traverssmith.com/people/simon-witney/ https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-why-less-might-be-more/ https://www.gov.uk/government/consultations/exposure-drafts-uk-sustainability-reporting-standards/outcome/government-response-to-the-consultation-on-uk-sustainability-reporting-standards-web-version#:~:text=a%20world%20leader%20for%20sustainable%20finance

    7 min
  8. Travers Smith's Alternative Insights: Unlocking private markets

    Feb 20

    Travers Smith's Alternative Insights: Unlocking private markets

    In this week's issue of Travers Smith's Alternative Insights, we are looking at UK regulator's client categorisation rules and their effect on firms looking to access individual investors. Wealthy individuals targeted: In Europe, policymakers and larger private fund managers are adapting rules and processes to attract more high-net-worth investors, while acknowledging that managing investor protection rules is essential. FCA aims to simplify categorisation: The UK's regulator is proposing a more flexible, judgment-based approach to opting up retail clients, replacing rigid thresholds but stressing the need for robust assessments and proper due diligence. Firms must maintain standards: As individual investors become more prevalent in private markets, compliance processes are essential – requiring significant investment but promising lasting value. Links: https://www.traverssmith.com/knowledge/knowledge-container/eu-retail-investment-directive-and-regulation/ https://url.uk.m.mimecastprotect.com/s/LnL0CQY4irXQXQFGHLIGkFHp?domain=sites-traverssmith.vuturevx.com https://www.ukprivatecapital.co.uk/static/dd01a037-6196-4184-87b43369579f1f87/260119-UK-Private-Capital-reponse-to-CP2536-Client-Cat-and-CoI-FINAL.pdf

    8 min
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A series of regular audio briefings for the alternative asset management industry.

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