Communication on EU Taxonomy, Corporate Sustainability Reporting, Sustainability Preferences and Fiduciary Duties: Directing finance towards the European Green Deal

Summary:

Communication published by the European Commission on 21 April 2021, providing an overview to a package of measures on sustainable finance.

Further information:

The package of measures is aimed at improving the flow of money towards sustainable activities across the European Union. The measures should enable investors to re-orient investments towards more sustainable technologies and businesses.

The set of initiatives was put forward in the forward of the European Green Deal and the implementation of its objectives. As part of that effort, the European Commission argues that companies require a comprehensive sustainability framework to change their business models accordingly. The package is aimed at ensuring the transition in finance and preventing greenwashing. It is intended at enhancing the reliability and comparability of sustainability information.

This Communication - published by the European Commission on 21 April 2021 - provides an overview on the approach adopted by the European Commission by tabling the following measures:

• EU Taxonomy Climate Delegated Act;
• Corporate Sustainability Reporting Directive (CSRD);
• Amending Delegated Acts on sustainability preferences, fiduciary duties and product governance:
  • Commission Delegated Directive amending Directive 2010/43/EU;
  • Commission Delegated Regulation amending Delegated Regulation (EU) No 231/2013;
  • Commission Delegated Regulation amending Delegated Regulations (EU) 2017/2358 and (EU) 2017/2359;
  • Commission Delegated Directive amending Delegated Directive (EU) 2017/593;
  • Commission Delegated Regulation amending Delegated Regulation (EU) 2015/35;
  • Commission Delegated Regulation amending Delegated Regulation (EU) 2017/565.

• Primary Source

• Alternative Source

Official

European Commission: Sustainable Finance Package https://ec.europa.eu/info/publications/210421-sustainable-finance-communication_en

European Commission: Press Release, 21/04/2021: Sustainable Finance and EU Taxonomy: Commission takes further steps to channel money towards sustainable activities https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1804

European Commission: Questions and Answers: Taxonomy Climate Delegated Act and Amendments to Delegated Acts on fiduciary duties, investment and insurance advice (21 April 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_1805

European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the Sustainable Finance Package (21 April 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_1862

European Commission: Remarks by Commissioner McGuinness at the press conference on the Sustainable Finance Package (21 April 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_1863

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