European Commission issues legislative package on sustainable finance
On 24 May 2018, the European Commission adopted a package of news regulations on Financing a Sustainable Growth in Europe.
On 24 May 2018, the European Commission adopted a package of news regulations on Financing a Sustainable Growth in Europe. This package includes three proposals:
- A proposal for a regulation on the establishment of a framework to facilitate sustainable investment. This regulation establishes the conditions and the framework to gradually create a unified classification system ('taxonomy') on what can be considered an environmentally sustainable economic activity.
- A proposal for a regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU)2016/2341. This regulation will introduce disclosure obligations on how institutional investors and asset managers integrate environmental, social and governance (ESG) factors in their risk processes.
- A proposal for a regulation amending the benchmark regulation. The proposed amendment will create a new category of benchmarks comprising low-carbon and positive carbon impact benchmarks, which will provide investors with better information on the carbon footprint of their investments.