Sustainable Finance

Non-Financial Reporting Directive

Updated on 06/04/2020

State of play: revision process

Level 1

Commission

  • 20 February 2020, the Commission launched a public consultation on the review of the Non-Financial Reporting Directive, as part of its strategy to strengthen sustainable investment in Europe.

Taxonomy

Updated on 06/04/2020

State-of-play: Legislative phase.

State of play: legislative phase

Level 1

Commission

  • 24 May 2018, the proposal was published as part of a reforms package.

Council

  • 25 September 2019, the Council adopted its negotiating position on taxonomy.
  • 17 December 2019, the COREPER adopted the trilogue agreement.

Parliament

  • 16 November 2018, the ENVI and ECON Committees published a draft report on the proposal.
  • 17 December 2018, the ECON Committee published the amendments tabled on taxonomy: Link 1 and Link 2.
  • 11 March 2019, the ECON Committee adopted the report.
  • 28 March 2019, the Parliament adopted its position on taxonomy in plenary.
  • 16 December 2019, the Parliament and the Council reached an agreement on taxonomy.
  • 23 January 2020, the ECON and ENVI Committees approved the provisional agreement.

Level 2

  • 18 June 2019, the TEG published its technical report on the classification system for environmental-sustainable economic activities (taxonomy).
  • 4 July 2019, the TEG launched a call for feedback on the taxonomy report.
  • 9 March 2020, the TEG published its technical report on the EU’s classification of green economic activities (taxonomy).

Next Steps

  • Final approval and publication in the Official Journal.
  • According to the Council position, the taxonomy should be established by the end of 2021, in order to ensure its full application by end of 2022.
  • Level 2 measures are expected to be published by end 2020 and end 2021.

EU Ecolabel on Financial Services

Updated on 06/04/2020

State-of-play: Pre-legislative phase.

State of play: pre-legislative phase

  • 20 March 2019, the Joint Research Centre published the preliminary report on EU Ecolabel criteria for financial products.
  • 20 March 2019, the JRC published the technical report with scope and criteria proposals on EU Ecolabel for retail financial products.
  • 20 December 2019, the JRC published the second technical report with scope and criteria proposals for the development of EU Ecolabel for retail financial products.

Next Steps

  • It is expected that the next JRC stakeholder meeting will take place in March 2020, and the actual adoption will be postponed to 2021.
  • The third technical report is expected in September 2020.

Green Bond Standards

Updated on 06/04/2020

State-of-play: Pre-legislative phase.

State of play: pre-legislative phase

Level 1

  • 6 March 2019, the TEG published the interim report on Green Bond Standards.
  • 18 June 2019, the TEG published the final report on Green Bond Standards.
  • 9 March 2020, the TEG published the final report on Green Bond Standards.

Next Steps

  • The Commission will include this project in its consultation on Sustainable Finance.
  • At this stage the Commission is considering a legislative proposal.

Sustainable finance

Updated on 06/04/2020

State-of-play: Pre-legislative phase.

State of play: pre-legislative phase

Level 1

Commission

  • December 2016, the Commission set up a High-Level Expert Group on sustainable finance.
  • 13 July 2017, the HLEG published the interim report on sustainable finance and launched a consultation.
  • 13 November 2017, the Commission launched a two-month public consultation on institutional investors and asset managers’ duties regarding sustainability.
  • 31 January 2018, the HLEG published the final report on sustainable finance.
  • 8 March 2018, the Commission published its Action Plan on Sustainable Finance.
  • 24 May 2018, the Commission published a number of proposals aimed at financing sustainable growth:
    namely a proposal on Taxonomy, a proposal on sustainable investment disclosure duties, a proposal on positive carbon benchmarks, and two delegated acts on MiFID and IDD.
  • 10 January 2019, the Technical Expert Group published a report on climate-related disclosures.
  • 30 January 2019, the Commission published a reflection paper on a more sustainable Europe by 2030.
  • 18 June 2019, the Commission published guidelines on reporting climate-related information.
  • 30 September 2019, the Technical Expert Group on Sustainable Finance (TEG) issued its final report on climate benchmarks and makes recommendations on a set of minimum technical requirements for the methodology of EU Climate benchmarks.
  • 9 March 2020, the TEG on Sustainable Finance issued two reports on taxonomy and on the EU green bond standard.

Parliament

  • 2 February 2018, the ECON Committee published the draft report on sustainable finance.
  • 21 February 2018, the ECON Committee held a public hearing on sustainable finance.
  • 24 April 2018, the ECON Committee adopted its draft report on sustainable finance.

Level 2

  • 19 December 2018, ESMA launched a consultation on integrating sustainability risks and factors in MiFID II, and in the UCITS Directive/AIFMD.
  • 25 February 2019, ESMA published the responses received to its consultations on integrating sustainability risks and factors in MiFID II and in the UCITS Directive/AIFMD.
  • 30 April 2019, ESMA published a final report on environmental, social and good governance considerations for investment firms and funds under MiFID II, AIFMD and UCITS.
  • 6 September 2019, ESMA published the responses to its call for evidence on potential short-term pressures on corporations stemming from the financial sector, as part of ESMA’s work on sustainable finance.
  • 6 September 2019, ESMA published the advice requested to the SMSG on the survey on undue short-term pressure on corporations from the financial sector conducted in June 2019.
  • 6 December 2019, the EBA published its Action plan on sustainable finance outlining its approach and timeline for delivering mandates related to environmental, social and governance (ESG) factors.
  • 18 December 2019, the ESMA published its findings on potential undue short-term pressures in securities markets.

Level 3

  • 18 October 2019, the Commission launched the International Platform on Sustainable Finance (IPSF) together with relevant authorities from Argentina, Canada, Chile, China, India, Kenya, and Morocco, and published a Q&A on the initiative.

Next steps

  • The Commission will publish level 2 measures on sustainability risks and factors on MIFID, AIFMD and UCITS early 2020.
  • The first level 2 Taxonomy measures are expected for end 2020.
  • The European Commission is expected to publish a consultation on a renewed sustainable finance strategy in Q2 2020.
  • The renewed sustainable finance strategy is expected for Q3 2020.

Low carbon and positive carbon benchmarks

Updated on 07/02/2020

State-of-play: Legislative phase.

State of play: on 9 December 2019, the Regulation was published in the Official Journal (L 317/17).

Level 1

Commission

  • 24 May 2018, the proposal was published as part of a reforms package.
  • 18 June 2019, the TEG published its report on Climate Benchmarks and Benchmarks’ ESG Disclosures.
  • 5 July 2019, the Commission launched a call for feedback on climate benchmarks and benchmarks’ ESG disclosure

Parliament

  • 28 September 2018, the ECON Committee published a draft report on the proposal for a regulation.
  • 18 October 2018, the ECON Committee held a hearing on the dossier.
  • 22 November 2018, the ENVI Committee presented its opinion on the proposals.
  • 14 November 2018, the Parliament confirmed the negotiations mandate.
  • 13 December 2018, the ECON Committee adopted its report on the proposal and the negotiations mandate.
  • 25 March 2019, the Parliament adopted the text of the trilogue agreement in plenary.

Council

Trilogue negotiations

  • 25 February 2019, the Parliament and the Council reached an agreement.

Level 3

  • 23 March 2019, ESMA published the responses to the consultation on disclosure requirements applicable to credit rating.

Sustainable Investment Disclosure Duties

Updated on 07/02/2020

State-of-play: Legislative phase.

State of play: on 9 December 2019, the Regulation was published in the Official Journal (L 317/1).

Level 1

Commission

  • 24 May 2018, the proposal was published as part of a reforms package.

Parliament

  • 24 May 2018, the proposal was published as part of a reforms package.
  • 2 August 2018, the ECON Committee published the draft report on the proposal.
  • 17 September 2018, the ECON Committee published amendments on the proposal.
  • 11 October 2018, the ENVI Committee presented its opinion on the proposal.
  • 5 November 2018, the ECON Committee adopted the report on the proposal.
  • 18 April 2019, the Parliament adopted the text of the trilogue agreement in plenary.

Council

 Trilogue negotiations

  • 14 November 2018, the Parliament confirmed the negotiations mandate.
  • 7 March 2019, the Parliament and the Council reached a political agreement.

Contact

Association des Banques et Banquiers, Luxembourg

Address

12, Rue Erasme L-1468 Luxembourg

Phone Fax
Opening hours

Monday to Friday from 8:00 to 17:30.