endobj Part I: Requirements applicable to all strategies and products . �q��[QPzp��"�Q��J-k����[�A�-UD�>�TY$d�����Jb�I�h�wG4|����N>�9�pح��,x�\#�TDA�q0s��;�f,;$�w��)��5� ���,�h��dx4xQ 1. 674 0 obj <> endobj The Taxonomy Regulation was published in the Official Journal four days later, thereby ushering in a new era of financial regulation. the Taxonomy Regulation. 690 0 obj <>/Filter/FlateDecode/ID[<9751A08751717042B8C7256DCA80AD2E>]/Index[674 31]/Info 673 0 R/Length 83/Prev 142327/Root 675 0 R/Size 705/Type/XRef/W[1 2 1]>>stream 14970/19 ADD 1 MP/jk 5 <> On 18 June 2020, the European Parliament adopted the so-called Taxonomy Regulation [1].Following the adoption of the Disclosure Regulation [2] at the end of 2019, this is a further key milestone in the development of the EU's legal and regulatory framework related to Environmental, Social and Governance (ESG) … Assess compliance with |��3 For a copy of the final version of the regulation, see here13. The endstream endobj 675 0 obj <>/Metadata 50 0 R/PageLayout/OneColumn/Pages 669 0 R/StructTreeRoot 78 0 R/Type/Catalog>> endobj 676 0 obj <>/Font<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 677 0 obj <>stream This new Regulation joins Regulation … /Annots [ 41 0 R 42 0 R 43 0 R 44 0 R 45 0 R 46 0 R 47 0 R ] New legislation stemming from the EU Action Plan for a greener economy requires asset managers to classify all their investment products on the basis of sustainability by March 2021. “Taxonomy Regulation”1—touted as the world’s “first ever green list”—was published in the EU Official Journal after the final stage of its approval by the European Parliament. V4���I���{-�I���8#��0�%�m��$eET�� U�X68v �='Æ](ь�&�pş`|F�פ]C��4�����{i4d]�t�K� ��"O�ޣB��c����[��!�.�9��f^��#�����"�kcu��盃�����ܒBhř������ }������|���h�)]Ia�l�r Council's first reading position on the taxonomy of sustainable activities The taxonomy will be the basis for all the aforementioned actions, … On 18 June 2020, the European Parliament adopted the regulation on the establishment of a framework to facilitate sustainable investment [1] (the Taxonomy Regulation), a milestone in the EU’s Action Plan on Sustainable Finance (the Action Plan). light thereof, this Regulation represents a key step towards the objective of achieving a climate-neutral Union by 2050. ��>D`�9���a� �[�n�GBrM�L�Oꧯ -� 4F�����`h��!��A��Qy�WE�&`&�4��w_N�!O#�6���g! Under the Taxonomy Regulation, an economic activity qualifies as environmentally sustainable if it: A. contributes substantially to one of the six environmental objectives defined in the Taxonomy Regulation, being: (i) climate change mitigation, (ii) climate change adaptation, (iii) sustainable use and protection of water and marine … <> The regulation now needs to be adopted by the European Parliament at second reading before it can be published in the Official Journal and enter into force. 6 0 obj To be environmentally sustainable, an activity must satisfy four tests under the proposed Regulation8: 1. it must substantially contribute to the one or more of the specified environmental objectives outlined in the Proposed Taxonomy Regulation, being clim… • Identification is very different from classification, which is even more problematic • There are several methods for … increase in regulation cost at the regulatory threshold size to test the theory in two ways. (}f,z�e~�/I�r�*Ro�'�{'�;���ƿ�T}42��?�E������L����rU������khp�_ک$���ES�v���?%�m�$R��N,95ȷ�/Ib�o��S��������i�j��QSّ�\��#}���&��G�fQCm{6 �G���C���C'�r�L䉴ch�k�]��f^`� Summary Full Text : Article 3 SFDR Policies on the integration of Sustainability Risks and associated website disclosures : The Sustainable Finance Taxonomy Regulation was published in the Official Journal of the European Union on 22 June 2020 and came into force on 12 July 2020. – The Taxonomy Regulation became effective 20 days after its publication in the Official Journal – ie on 12 July 2020. The taxonomy is a classification framework according to which activities can be assessed in order to determine whether they are environmentally sustainable. – As the Commission has made clear:14 “The regulation can be seen as a framework, which allows for the progressive development of [the list of … Where a financial product as referred to in Article 9(1), (2) or (3) of Regulation (EU) 2019/2088 invests in an economic activity that contributes to an environmental objective within the meaning of point (17) of Article 2 of that Regulation, the information to be disclosed in accordance with Articles 6(3) and 11(2) of that Regulation … #�S���U&0���$�J]�����Y���s6�}DTt}�\.~���������ky�N N�X���ˍ�[�ar-�}#����na�xmŀ4X���Kˮtڒ\5�\ٔF9g���Mi�$�$j�S��T�Ј����0r��ү�]ö������~��c�{ЀJ�;-侀?]J��)�����z%QS/�ϥ���,3#�|C����ߣOK��x��!\҇qM�Y:�������tK�c8@T��! endstream ��=t�Z:6W���a]��}����b�QŘ�B铖��X�����Q.�0��qŏaH���v�͘�x��T$e|�_�GF�3�h���T��?����w�̙� :)��T�(�ށ�銿x���Z�����҃�*r>q�6�'��^���9pj�d��3οfc�{�8�_���[�#^?��`��G��=~�7�ۿ�����z�$ie����!�W�>�� �+e>�R�~��JD��d)�=f;�dw��X�_���A.�T5�r�_�A�D-!��Ֆ�ن��H��V&"��gsv�&���o {�柿bWX+:v�qw�L��jը]�F�|�K����,� iF��! ��d6{��Y8A�������>ŋ¸�h&��y4��诹U!9A� ��6��F7��}����W{����u��ϑ�wS�� It has since been published in the Official Journal and entered into force on 12 July 2020. AMIC response: ESMA CP on Article 8 of the Taxonomy regulation 04/12/2020 . application of the Regulation (see Article 5 (1c)) and Recital (8): “ .. due to the insufficient quality of data currently available for Scope 3 GHG emissions, it is necessary to set out an appropriate phase-in timeline … “. (4) Sustainability and the transition to a safe, climate-neutral, climate-resilient, more resource-efficient and circular economy are crucial to ensuring the long-term competitiveness of the Union economy. The EU-wide green taxonomy set out by the Taxonomy … :Wt��tF�*��5�(ʽ� � �$%yJAvZ�m�/=�9Z�Hߕ�Q����0q����,h�Z�lX��xW�u+MT���Ri��ñܽ��3B��~�'��B��[�$:P�`oB9�dE�4v �����j�7%���jő�2鱊�c���-��v�Qܪ�S6�a��%y��+ɿu����uOc��d�)팾[/9�XI�FE�����G��Z^٨�|TRT��k�[�ǠVj�Uk�I���q��I�z[{���ݦ�i��6,H��a�qaM� 3�l̒/1$��t�g0:�$�#�[��L�A>l�C�T��C���yt:���ʽh�ćͼ,��L�>�EM�ð�:s�K�� %PDF-1.4 SM�jiNW�,���v �=�'���FI�4��1��� #!��6��v����Sp��&Ú~�G�΂4T6��f����Ql�]z�_+O�R3nG~[qF��y\Q~XӞ[nS��]ى �j�X�4�?3���>`x�\B��A�D��T�C�i��y� �D�Ʃ�C]���㬫�vs��*g9��W^;b �(:���L���?�������p��O�TB?���Ȇ�U?������ �{��G�.�����7؄�. European Taxonomy regulation. For the purposes of this Guide we have focused on the Taxonomy Regulation as it applies to UCITS Managers, AIFMs and MiFID investment firms, which we collectively Listed real estate allows anyone, from retail <> The objective of the Taxonomy Regulation is to contribute to the creation of the world’s first-ever classification system for sustainable economic activities, in order to establish a common … Assess Do No Significant Harm requirements regarding six environmental objectives 4. We support the approach proposed by ESMA, which closely align with the TEGs ’s recommendations, and is key to allowing asset managers to comply with their own requirements (EU Taxonomy, SFDR) This article examines the EU Sustainable Finance Disclosure Regulation and the EU Taxonomy … The TR sets out the framework and environmental objectives for the Taxonomy, as well as new legal obligations for financial market participants, large companies, the EU and Member States. That means that the framework for the taxonomy, including the high-level environmental objectives, will form part of UK law, but the detailed rules in the TSC of how you … Political agreement was reached in December 2019 on the Taxonomy Regulation following intense negotiations. i���@�踕�;y)��-߯ÆA����\:N|�t%ʕ������[�i���!�H!3��P�_�� ��c_��;wv) The EU Taxonomy Regulation sets out the framework and environmental objectives for the taxonomy contains tools to help investors, companies and issuers navigate the transition to a low-carbon, resilient and resource-efficient economy supplements the EU Disclosures Regulation and creates taxonomy-related disclosure obligations Based on this, we believe that, in the EU Taxonomy as well, a LCA (scope 3 GHG emissions) … 704 0 obj <>stream (the “Taxonomy Regulation”). h�b```��E ��ea�8 `d`d��]��Y�$� n�j��쳸���00�������/��y�)~���,O�K�O�\|}� 90�����Ȃ,���� 1. ���3Z�'�k�t�RVۮ�݆��ű�Xi 6�Kj̮�:��E�|GO�����%-mG~��zz�%��*���u�}���ٜ\A7�+5eԙܹ ,tfO ws���y�e"�\��:+�� ��)0q4IR4�$�(�䋂�S�V�X�L>�H�GS��q�wl���'T �ļ��3��kc�gB\�o�qe����jD�+�χ[%"�]��ڨ�R�~O�Úֺ��k�Bra�����اL���ۊ~bؼ��'f���\E(_���Ix�J�;�l��W��7F����,��y��,r��cjG��z�`έP�8i(�p��6c�4���Q�����Je$1����|�q^b,�-Ô�D~a�9�˫������8�IB;ãMi��#���;[�������K�w�>uM�v�Y��v�2=������>�Ɍ6�����x=�b��kD�҆1�*/�D]3r��XC��@����&�빊�իkse��)���)s9�r��Y��o���{KZ̬��t�{�i���"���^��[�����F.jQ0%�2��.�ҴqE�=���ҷ䷒A,��͉]OjZv��K[L��yn�XdΉ\{���� <> 3 0 obj �o��F�S�l���ڎ��}[�,u-�� ��Ģ8���f�T����o�{���5���_Ѿ�W i _��7�5��9�1"�ޘ����?�����D��#LZ REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the establishment of a framework to facilitate sustainable investment, and amending Regulation 2019/2088 on sustainability-related disclosures in the financial services sector ... report_en.pdf. It is intended to support a sustainable and inclusive economic system, not only from an environmental, but also from a social point of view. Assess significant contribution to climate change mitigation and/or adaptation 3. �0�b�3ԋ�(S���z/ ��x��X%��2�(��:���-M��3ڻ���-_��w�P�e-�ZA���屗�Ak�w_��Ɋse��V� ��%t���e- Please try after sometime. Overview of the EU Taxonomy Regulation. �b,JQ��Z�D-&�����^�9���x-~ߊq.|�� ���?�?�i> �y�QH�\���9�x��cy�L�&�F���L���00~��l��`by�L��v�"[� /+X� The proposal of a Regulation on the establishment of a framework to facilitate sustainable investment focuses on the establishment of a common language for sustainable finance, e.g. /Contents 6 0 R>> ANNEX 2: THE SFDR AND TAXONOMY REGULATION . DISCLOSURE REGULATION AND TAXONOMY REGULATION – KEY DATES Jun 2020 Dec 2020 Mar 2021 Jun 2021 Dec 2021 Jan 2022 Jun 2022 Dec 2022 June 2020 significant harm principle" EU Taxonomy Regulation formally adopted portfolio. The Regulation recognises six different types of economic activities which qualify as environmentally sustainable activities for the purposes of the taxonomy: 1. climate change mitigation: the activity contributes to greenhouse gas stabilisation consisten… Summary. p�c�vQ808�����؎E��ݏ�TБ�z��׍��$��0 H�y4ճ��7C�����'X����y�m����F�@��.�W�T[bB��t�O��5�X��?-m*�A#xͳl��-;����\���X%�C-ݸ�P���&�L�x7�z$Io�"l��4�\�9N[��1����h(f�*�'V���n��^���[���t%��b��h���ҥ�*��#k*����t)��#��֔� %���� h��Xmo�6�+��ah�w��! December 2020 More detailed disclosure and ESA Draft RTS covering: Firms' … Article 8(4) of the Taxonomy Regulation requires the EC to adopt a delegated act to supplement the above obligations by specifying the content, presentation and methodology of the information to be disclosed by both fi nancial and non-fi nancial undertakings subject to the Non-Financial Reporting … @�[vzŭ��ۂ|�Fk,����v�~�,)���E6�k��HJ�J�9#�蜓�¤��$Lk�*¬��&�tnS The regulation creating an EU sustainable finance taxonomy (the Taxonomy) has been agreed by the EU at the political level. The Taxonomy Regulation entered into force on 12 July 2020. As expected there is a sharp fall in the fraction of … However, it will not start applying in practice until 1 January 2022 at the earliest. The Taxonomy Regulation sets out an EU-wide framework (a classification system known as a “taxonomy … The PDF server is offline. Taxonomy or Plant Systematics, despite what people would have you believe, really is not an exacting science in many ways • This statement mainly applies to the identification process, so well start there. The green framework the Regulation establishes will evolve over stream Regulation (EU) 2020/852 (the ‘Taxonomy Regulation’) was published in the Official Journal on 22 June 2020 and entered into force 20 days later. Under the European Union (Withdrawal) Act 2018, the Taxonomy Regulation itself will form part of EU retained law after the end of the transition period. This paved the way for the Regulation to come into effect on July 12. Advice related to non-financial issuers . EU TAXONOMY REGULATION BACKGROUND For 20 years, the European Public Real Estate Association (EPRA) has been the voice of Europe's listed real estate companies that derive income from the ownership, trading and development of income producing real estate assets. ?9BX���$�ٶ�h� �t�r�P'�M :ɛ �$��"O���9��1q�♧�1o��`�l0^�Q>�s|��]�j%,�J��Ox�©���z�{;�/�c ��k�ᬩ҄�h�k�9amA'G�돁B͇��:���ȣ@W� �ʒ���[��(s[ˡ�Ϗ��V��0�7?BPI���T�ea�@���u(�xE�0�-�!F����e� endstream endobj startxref In light of this important milestone, this note summarises the key provisions of the Framework Regulation … The Taxonomy Regulation (TR), agreed at the political level in December 2019, creates a legal basis for the EU Taxonomy. a unified EU classification system (or a so-called taxonomy). Dechert LLP - Overview of the EU Taxonomy Regulation.pdf To read Dechert's article in full, please click on the PDF above.