TAXONOMY: AN EU INITIATIVE TO PROMOTE SUSTAINABILITY IN THE FINANCIAL SECTOR
To overcome the comprehensive threats of climate change and environmental degradation, Europe has adopted the Green Deal as a new strategy to promote growth while reducing greenhouse gases emissions and protecting the environment. As part of the effort to make EU's economy sustainable, a new regulatory framework was set to facilitate sustainable investments, helping the financial market to adjust to these challenges and to foster private capital flows towards sustainable investments.
WHO HAS TO DO WHAT ?
IMPLEMENTATION TIMELINE
December 31 2020
Financial Market Participants
Technical screening criteria for climate change mitigation and adaptation
June 31 2021
Non- financial companies
Technical screening criteria for climate change mitigation and adaptation
December 31 2021
Financial Market Participants
Technical screening criteria for other environmental objectives
Disclosure in relation to climate change mitigation and adaptation in periodic reports, pre-contractural disclosures and on websites
Non- financial companies
Disclosure for activities related to climate change mitigation and adaptation covering financial year of 2021
December 31 2022
Financial Market Participants
Disclosure in relation to all environmental objectives in periodic reports, pre-contractural disclosures and on websites
Non- financial companies
Disclosure for activities related to all environmental objectives covering the financial year of 2022
It is important to recognize that taking longer-term sustainability interests into account makes economic sense and does not necessarily lead to lower return for investors