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.