The European Commission has published further FAQ on sustainability disclosures under Article 8 of EU Taxonomy Regulation.
Article 8 of the EU Taxonomy Regulation requires in-scope entities to include additional information in their non-financial statements on how and to what extent their activities are associated with environmentally sustainable economic activities that are aligned with the EU Taxonomy Regulation.
The FAQ, which the Commission published in draft last February, aim to clarify the content of the Disclosures Delegated Act, which specifies the content, methodology and presentation of the information to be disclosed under Article 8. The FAQ also complement the FAQ published by the Commission on 20 December 2021 on how financial and non-financial undertakings should report taxonomy-eligible economic activities and assets in accordance with the Disclosures Delegated Act.
Topics covered by the FAQ include: 'enabling' and 'transitional' economic activities in the context of Taxonomy-eligibility reporting, voluntary reporting, Taxonomy-eligibility of non-EU activities (such as green debt instruments) and interaction with the proposed requirements on corporate sustainability reporting. Sector-specific FAQs have been included for non-financial undertakings, financial undertakings, asset managers, insurers, credit institutions, and those operating in the debt markets.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
