Featured Product

    EU Finalizes Rule on Framework to Facilitate Sustainable Investment

    June 22, 2020

    Regulation 2020/852 on the establishment of a framework to facilitate sustainable investment has been published in the Official Journal of European Union. Regulation 2020/852 establishes the criteria for determining whether an economic activity qualifies as environmentally sustainable for the purpose of establishing the degree to which an investment is environmentally sustainable. Regulation 2020/852 also amends Regulation 2019/2088 on sustainability‐related disclosures in the financial services sector and enters into force on the twentieth day following that of its publication in the Official Journal of the European Union. In addition, EC has launched a call for applications for members of the Platform on Sustainable Finance. The platform will be an advisory body composed of experts from the private and public sectors. The deadline for applications is July 16, 2020.

    The new legislation on sustainable investments lays down six environmental objectives and allows economic activity to be labelled as environmentally sustainable if it contributes to at least one of the objectives without significantly harming any of the others. The objectives are:

    • Climate change mitigation and adaptation
    • Sustainable use and protection of water and marine resources
    • Transition to a circular economy, including waste prevention and increasing the uptake of secondary raw materials
    • Pollution prevention and control
    • Protection and restoration of biodiversity and ecosystems
    • Boosting green investments

    According to EC, the criteria for climate change mitigation and adaptation will be adopted by the end of this year and the criteria on the other four environmental objectives (sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, protection and restoration of biodiversity and ecosystems) will be adopted by the end of next year. To ensure consistency between Regulation 2020/852 and Regulation 2019/2088, Regulation 2019/2088 has been amended to mandate the ESAs to jointly develop regulatory technical standards to specify details of the content and presentation of the information in relation to the principle of "do no significant harm." These regulatory technical standards should be consistent with the content, methodologies, and presentation of the sustainability indicators in relation to adverse impacts, as referred to in Regulation 2019/2088. Regulation 2019/2088 has further been amended to mandate ESAs to develop, through the Joint Committee, draft regulatory technical standards to supplement the rules on transparency of the promotion of environmental characteristics and of environmentally sustainable investments in pre-contractual disclosures and in periodic reports.

    Regulation 2020/852 highlights that, by December 31, 2021, EC shall publish a report describing the provisions that would be required to extend the scope of Regulation 2020/852 beyond environmentally sustainable economic activities, to cover other sustainability objectives, such as social objectives, and to cover the economic activities that do not have a significant impact on environmental sustainability and that harm environmental sustainability. The report will also review the appropriateness of specific disclosure requirements related to transitional and enabling activities. By July 13, 2022, EC shall assess the effectiveness of advisory procedures for the development of the technical screening criteria established under Regulation 2020/852. Also, by July 13, 2022, and subsequently every three years thereafter, EC shall publish a report on the application of Regulation 2020/852.


    Related Links

    Effective Date: July 12, 2020

    Keywords: Europe, EU, Banking, Insurance, Securities, Climate Change Risk, ESG, Regulation 2019/2088, Disclosures, Regulation 2020/852, Sustainable Finance, Taxonomy, European Parliament, European Council

    Featured Experts
    Related Articles

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514