On 18 June 2019, the European Commission published several documents as part of its action plan on sustainable, including the results of the work of the technical expert group (TEG) on sustainable finance.
First, the Commission adopted the non-binding guidelines accompanying the NFRD on reporting on climate-related information, based on the previous work of the TEG (report published in January 2019).
These guidelines, incorporate the TCFD recommendations, and provide companies with practical recommendations on how to improve the reporting of the impact that their activities are having on the climate as well as the impact of climate change on their business.
The European Commission foresees that it will concern around 6,000 EU-listed companies, banks and insurance companies that have to disclose non-financial information under the Non-Financial Reporting Directive.
Second, the TEG published reports on the EU Taxonomy, EU Green Bond Standard, and Climate Benchmarks and benchmark’s ESG disclosures. Whereas the taxonomy and benchmarks reports will be the object of a consultation by the TEG, the EU Green Bond report is almost final.
The TEG recommendations on EU green Bonds are the following
- Creation of a voluntary, non-legislative EU Green Bond Standard
- Definition of the EU Green Bond as any type of listed or unlisted bond or capital market debt instrument issued by a European or international issuer that is aligned with the EU Green Bond Standard
- The core components of EU Green Bond Standard would be: alignment with EU-Taxonomy, publication of a Green Bond Framework, mandatory reporting and mandatory verification
- The TEG suggests that external verifiers are formally accredited and supervised by ESMA
- 24th June 2019: European Commission stakeholder conference
- End June/early July 2019: The TEG will conduct a call for feedback on the EU Taxonomy report and on the interim Climate benchmarks report
- September2019: TEG to publish final report on Climate benchmarks which will serve as a basis to the drafting of delegated acts by the European Commission
- By end 2019: TEG to present further recommendations/obervation on the EU taxonomy
- End 2019: End of the TEG work
- Early 2020: Adoption on climate benchmarks delegated regulation
- DG FISMA: sustainable finance – landing page
- Commission Guidelines on reporting climate-related information
- TEG report on EU taxonomy
- TEG report on EU Green Bond Standard
- TEG interim report on Climate benchmarks
By Aurélie CASSOU, ABBL & ALFI Senior Adviser, European Affairs