The Low-Down on the EU’s New ESG Disclosures Rules The European Union set in motion an ambitious legislative program to make environmental, social and governance (ESG) issues a core aspect of regulation across the financial services industry. Companies based in, doing business with or working with investors and corporations in the EU must understand how to ensure their sustainability disclosures comply with the interwoven […]

Tags: CSR / directive / EU

The Low-Down on the EU’s New ESG Disclosures Rules

The European Union set in motion an ambitious legislative program to make environmental, social and governance (ESG) issues a core aspect of regulation across the financial services industry. Companies based in, doing business with or working with investors and corporations in the EU must understand how to ensure their sustainability disclosures comply with the interwoven expectations of the Sustainable Finance Disclosure Regulation (SFRD), the Non-Financial Reporting Disclosure directive (NFRD) as well as the new Green Taxonomy.  

In short, the EU Green Taxonomy helps investors, companies, issuers, and project promoters navigate their transition towards a low-carbon, resilient and resource-efficient economy. Released in April 2021, this tool helps them identify assets and carry out ESG tagging by way of a standardized and consistent approach. This applies to companies and asset managers that are already in the scope of the combined SFDR and NFRD. Meanwhile, the SFDR and NFRD focus on identifying and mitigating sustainability risks.  

Key Takeaways

In this briefing paper, Ksapa outlines the link between EU’s green taxonomy, SFDR and NDRD and navigate through their complexity. 

Read the Document in Full

To learn more, register below and download our briefing paper.