an overview of EU regulation.

 

The EU Action Plan for Financing Sustainable Growth (the “EU Action Plan”) aims to reorient capital flows towards a more sustainable economy, foster greater transparency and long-termism in financial and economic activities, and manage risks arising from climate change.

There are three key EU regulations stemming from the EU Action Plan that  impact our business: 

  • EU Taxonomy: do companies contribute to an environmentally sustainable objective through their activities?
  • SFDR (Sustainable Finance Disclosure Regulation): how are sustainability related risks and considerations taken into account and met at both product and firm-level?
  • MIFID II ESG amendments on integration of sustainability risks and sustainability factors in the suitability assessment (“MIFID II ESG amendments”): do investors have sustainability preferences? and how to assess them?  

The table below provides a brief introduction to each area.