ESG Regulatory

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Timeline - Key Compliance Milestones

Overview of the main forthcoming legislative developments and compliance deadlines


Recent Updates

  1. Global Responsible Investment Regulations Continue to Rise

    While 2020 put many plans on hold due to the covid-19 pandemic, there was no pause in the rapid growth of global responsible investment policy. In 2020, over 120 new or revised policy instruments were established, the highest number ever recorded and over 30% more than in 2019. (Source: UN PRI).

  2. SFDR and EU Taxonomy: ESAs Consult on Draft RTS on Content and Presentation of Taxonomy-Related Sustainability Disclosures Under SFDR

    On March 17, the European Supervisory Authorities (ESAs) published a joint consultation paper on draft regulatory technical standards (RTS) regarding the content and presentation of sustainability disclosures under Articles 8(4), 9(6) and 11(5) of the Sustainable Finance Disclosure Regulation ((EU) 2019/2088) (SFDR).The ESAs have agreed to:

    • amend the draft RTS on the content, methodologies and presentation of disclosures and aims to create a single rulebook for RTS on sustainability disclosures; and
    • create one set of RTS for all the environmental taxonomy-related disclosures, covering the six objectives of Article 9 of the Taxonomy Regulation, with two different application deadlines depending on the product’s environmental objectives.

    The ESAs also propose to standardize the disclosures in the draft SFDR RTS by adding a new section including the Taxonomy Regulation disclosures. The final text is expected to be adopted later in 2021. The closing date for responses to the consultation is 12 May 2021. Following the consultation period, the draft RTS will be finalised and submitted to the European Commission.

  3. EU Taxonomy Regulation: delay to technical screening criteria

    The European Commission should have adopted a delegated act containing the technical screening criteria (TSC) for the first two environmental objectives (climate change adaptation and mitigation) of the EU Taxonomy by 31 December 2020. Yet, it is now likely that the final set of criteria will not be issued before April 2021, at the earliest. The list of economic activities will from next year define what can be labelled as a sustainable investment. This delayed timeline presents challenges for reporting entities that have to comply with the detailed disclosure requirements envisaged by the Taxonomy as early as January 2022.

  4. Further reading: Platform on Sustainable Finance report on transition- March 2021
  5. ESG Today Guest Post: Markets Must Brace for Hard-Hitting ESG Regulation

Pending legislation

  • Proposed Green Bond Standard On Proposed Green Bond Labelling Measures: voluntary, non-legislative EU Green Bond Standard to enhance the effectiveness, transparency, comparability and credibility of the green bond market and to encourage the market participants to issue and invest in EU green bonds.
  • Proposed Ecolabel Measures On an Ecolablel for Financial Services