Investors would benefit from an EU legal framework with due diligence guidelines and reporting requirements for companies in the real economy. This framework should be consistent with the reporting requirements in the revised NFRD and the disclosures in the Sustainability-Related Disclosures regulation (SFDR). At the same time, any framework for supply chain due diligence should not impose a competitive disadvantage for EU companies.

The European investment management industry is helping savers achieve their financial goals and build up retirement savings. Investment management is a vital part of the European economy, providing funding for companies and infrastructure projects and contributing to economic growth and job creation across all Member States.

As the voice of European asset management industry, EFAMA strongly welcomes the development of 
the EU Taxonomy and its technical screening criteria. We see the Taxonomy as a critical tool to 
unleashing the potential of sustainable finance in Europe by assisting issuers, project promoters, 
companies, investors, and other financial market participants in identifying truly sustainable economic 
activities. We wish to put forward recommendations that aim to improve the usability and integrity of this 
framework.