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ESMA Proposes Rules for Taxonomy-Alignment of Non-Financial Undertakings and Asset Managers | Cadwalader, Wickersham & Taft LLP

All three KPIs: non-financial undertakings shall apply their best judgement in splitting turnover between CapEx and OpEx across their activities, but while doing this shall avoid (1) unduly inflating the proportion of the Activities and (2) double-counting; and the Commission shall establish requirements for KPIs to be accompanied by information on how the KPIs were prepared and what they cover; (ii)   Turnover KPI: non-financial undertakings should use the definition of net turnover in Article 2(5) of the Accounting Directive as the reference point when calculating their turnover; (iii) CapEx should be defined as: where IFRS is applied: the costs accounted for based on specific paragraphs of IAS 16, IAS 38 and IAS 40-41 and IFRS 16; and

EU Prepares to Get Tougher on Asset Managers that Greenwash Sustainable Credentials

EU Prepares to Get Tougher on Asset Managers that ‘Greenwash’ Sustainable Credentials By Simon Jessop and Kate Abnett | March 10, 2021 LONDON/BRUSSELS – For money managers and advisers keen to market their sustainable investing credentials to European clients, going green is about to get a lot tougher. Under a suite of new EU finance rules due to be rolled out in stages, beginning on March 10, firms including fund houses, insurers and pension funds that provide financial products or services in the European Union will have to begin disclosing how sustainable they really are. The new rules “should make it harder for market participants to talk up environmental credentials without following through with action, so-called ‘greenwashing’….”

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