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Disclosures relating to sustainable investments and sustainability risks (P8_TA-PROV(2019)0435)

EU Forthcoming 2019

This Regulation lays down harmonised rules on the transparency to be applied by financial market participants and financial advisers with regard to the integration of sustainability risks and the consideration of adverse sustainability impacts in their processes and the provision of sustainability-related information on financial products

Issuer name

EU

More information

On 24 May 2018, the Commission published three proposals for regulations reflecting the EU's efforts to connect finance with its own sustainable development agenda. The proposals include measures to: create an EU sustainable finance taxonomy; make disclosures relating to sustainable investments and sustainability risks clearer; and establish low-carbon benchmarks. In particular, the proposal for a regulation on disclosures aims to integrate environmental, social and governance considerations into the decision-making process of investors and asset managers. It also aims to increase the transparency duties of financial intermediaries towards end-investors, with regard to sustainability risks and sustainable investment targets. Thisshould reduce investors'search costs for sustainable investments and enable easier comparison between sustainable financial products in the EU. In the Parliament, the ECON committee adopted its report on the proposed regulation in November 2018. On 7 March 2019, the Romanian EU Council Presidency and the Parliament reached a preliminary agreement on the proposal in trilogue discussions, and that agreement now needs to be confirmed by Parliament, with the plenary vote expected in April.

Organizations covered by the instrument

All Companies

Target organization notes

Member states should implement law to regulate of all companies with relative activities

Industry scope

Financial Services

Industry scope notes

financial market participants and financial advicer

Disclosure venue

website

ESG coverage - E (Environment)

All

ESG coverage- S (Social)

All

ESG coverage- G (Governance)

All

ESG coverage- Eco (Economic & General)

Trade and Investment

Status

Forthcoming

Country

EU

Region

Europe

Date of publication

2019

Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary

Mandatory

The geographical scope

International/regional (EU)

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