EU Taxonomy Regulation
The Taxonomy is a critical tool that will assist issuers, project promoters, investors and other financial market participants in identifying sustainable, enabling and transitional economic activities. The regulation requires asset managers to disclose the proportions of their Taxonomy-compliant “green asset ratios” in funds with sustainability objectives and characteristics.
Asset managers will rely upon investee companies’ reporting against the technical screening criteria introduced by the Taxonomy. Given that these criteria will be fundamental in guiding the investment decisions of asset managers and, increasingly so, of public authorities, they should allow for a sufficiently broad investible universe, including transitional activities. EFAMA has also contributed to the development of industry-relevant Taxonomy Key Performance Indicators for financial and non-financial undertakings.
EC Consultation on EU Taxonomy Delegated Acts
EFAMA response to EC CfE ESG ratings and sustainability risks in credit ratings
EFAMA welcomes the opportunity to respond to the EC’s targeted consultation on the functioning of the ESG rating market in the EU and on the consideration of ESG factors in credit ratings. Please note that our response covers, at the same time, ESG ratings and ESG data providers, as the demand for ESG “raw” data has been increasing at a steady pace. The use of ESG data has also rapidly shifted from a narrow set of investment products to being prolific across all investment products.
The European Single Access Point: a powerful tool for investors to assess the ESG performance of companies
EFAMA sees the European Commission’s proposal for the creation of a European Single Access Point (ESAP) as a crucial step in addressing the limited availability and scattered nature of financial and sustainability-related entity information at EU level.
EC Consultation on EU Taxonomy Delegated Acts
Simplification Omnibus reduces regulatory burden while maintaining important sustainability ambitions like double materiality
Yesterday, the European Commission published its first regulatory simplification Omnibus, which aims to reduce the sustainability reporting burden on EU companies through amendments to the Corporate Sustainability Due Diligence Directive (CSDDD), Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy Regulation. We support this initiative as a positive and necessary step to increase the competitiveness of European companies and reduce regulatory burden, while still maintaining the ambitions of the EU Green Deal.
Positive developments include:
EFAMA response to EC CfE ESG ratings and sustainability risks in credit ratings
EFAMA welcomes the opportunity to respond to the EC’s targeted consultation on the functioning of the ESG rating market in the EU and on the consideration of ESG factors in credit ratings. Please note that our response covers, at the same time, ESG ratings and ESG data providers, as the demand for ESG “raw” data has been increasing at a steady pace. The use of ESG data has also rapidly shifted from a narrow set of investment products to being prolific across all investment products.
3 questions to Thierry Bogaty on the EU Ecolabel for retail financial products
Q #1 Can the EU Ecolabel for retail financial products help channel individual investors’ savings into environmentally sustainable projects?
A well-designed EU Ecolabel has the potential to provide clear guidance on the financial products retail investors can invest in if they wish to support environmentally sustainable projects and activities - in line with the EU Taxonomy Regulation. The European Commission wants to create a trusted and verified label for retail investors, who would benefit from better comparability of financial products.
