The EU Taxonomy Directive adopted in 2019 aims to provide a uniform classification of ecological sustainability for financial market participants within the EU. It is designed as a framework regulation for European financial markets.
However, the Taxonomy is also directed policy makers and businesses, the ones that create the assets that can then trade on the stock markets. EU Member States are obliged to apply the taxonomy which is set out in the taxonomy regulation when specifying requirements of financial products designated as “ecologically sustainable”. This includes minimum standards, seals or labels for “green” financial products. The EU Commission has created a level playing field for sustainabilty, ending a patchwork of different definition, approaches and sustainability concepts through adoption oft he uniform European sustainability taxonomy.
The taxonomy is accompanied by the Disclosure Regulation, in order to eliminate information asymmetries in the relationships between investors and financial market participants and promote inclusion of sustainability risks and criteria in Reporting. The Non financial Reporting will be updated in 2020.
A brown and a social taxonomy are underway. What does it mean for asset owner, companies and investors?
Take advantage and recorginze the opportunities.
We advise you on the taxonomy, on taxonomy compliant products and services and are at your side in this transformational process.
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