EU Green Taxonomy to Channel Capital to Sustainable Activities
The EU taxonomy of sustainable activities will enable regulators and investors to evaluate the sustainability of economic activities and direct investments into low-carbon transition, Fitch Ratings says, although it will impose complex disclosure requirements on corporates.
The taxonomy, a classification system establishing a list of environmentally sustainable economic activities, aims to reach the EU’s Green Deal’s objective of making the EU economy sustainable and informs a range of regulatory frameworks such as the Green Bond Standard and Sustainable Finance Disclosure Regulation for asset managers. A key date for corporates will be 1 January 2022, when the revised Non-Financial Reporting Directive (NFRD) is due to come into force for companies with more than 500 employees. The scope of reporting could be expanded to cover any large companies, regardless of the number of employees, as well as listed SMEs, as has
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It s widely anticipated that we ll soon be seeing more
action from the SEC on sustainability disclosure, including
possibly a prescriptive ESG framework that draws on some global
metrics. (See,
e.g., this PubCo post and this PubCo post.) Trying to head those
prescriptive ESG metrics off at the pass is Commissioner Hester
Peirce yes, she who once described ESG as
standing for enabling shareholder graft in her
statement,
Rethinking Global ESG Metrics. With
Gary Gensler now sworn in as SEC Chair, the revised composition of
Commissioner Johansson travels to Slovenia ahead of the Slovenian Presidency of the Council of the European Union and to Croatia eureporter.co - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from eureporter.co Daily Mail and Mail on Sunday newspapers.
By Susanna Rust2021-04-22T16:04:00+01:00
The European Commission on Wednesday delivered a package of measures that stand to make a coherent whole of its plan to harness financial markets for the fight against climate change, although questions remain about certain environmental classification decisions.
The package includes a proposal for new corporate sustainability reporting legislation, which would replace the Non-Financial Reporting Directive (NFRD), and the “EU taxonomy climate delegated act”, which sets out the criteria determining which economic activities can be said to be green in terms of their contribution to climate change mitigation and adaptation.
The Commission also published a set of rules that require financial firms, such as advisers and asset managers, to include sustainability in their procedures and investment advice to clients.
Sustainable Finance and EU Taxonomy: Commission takes further steps to channel money towards sustainable activities etribuna.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etribuna.com Daily Mail and Mail on Sunday newspapers.