Sustainable finance is a key component of the European Commission's strategy for the implementation of the European Green Deal. Next to the impact on the investment funds sector, various ESG transparency obligations affect other financial sector players, such as credit institutions and investment firms, notably when they provide portfolio management services or investment advice. At this stage, these obligations are set out in the Disclosure Regulation (EU) 2019/2088 and become applicable on 10 March 2021. Relevant players will need to prepare ahead of this date, including by taking into account the interaction with the requirements provided for in the Taxonomy Regulation (EU) 2020/852.
As mentioned in the European Green Deal communication, a review of the Non-Financial Reporting Directive 2014/95/EU is pending.
You can find more information about the key points of and practical challenges posed by the evolving legal framework around the Disclosure Regulation and the Taxonomy Regulation in the article under this link. To facilitate navigation through these texts and currently available implementing legislation, please refer to the interactive compilation of texts available under this link.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.