The European Commission, in its push to in its push to promote environmentally-sustainable finance across the EU, is assessing feedback from a recent consultation on a proposed classification system – or “taxonomy” – for sustainable economic activities.
The consultation was launched in July and headed by the Technical Expert Group (TEG) on Sustainable Finance, a global forum of experts set up by the Commission.
In June this year, the TEG published its report on taxonomy, following the Commission's legislative proposal in May 2018 for an EU-wide classification system. The Commission's proposal on an EU taxonomy, which has been discussed by the European Parliament and the Council, aims to develop a unified, EU-wide classification system for environmentally-sustainable economic activities with the end goal being far greater contribution to more informed decisions by investors and businesses.
2050: climate-neutral Europe
The call for feedback derives from and supports the Commision's overarching objective of achieving a climate-neutral Europe by 2050 and follows its Action Plan on financing sustainable growth published in March 2018 that focuses heavily on climate change adaptation and mitigation strategies. With the call for feedback closed as of 13 September, the Commission will be advised closely by the TEG over the autumn months on how to use the feedback to further develop and progress the future EU Taxonomy.
Osborne Clarke comment
Sustainability will continue to be a major driver of the regulatory agenda as it becomes an all-encompassing obligation rather than an ulterior consideration and becomes a part of all aspects of business management and decision-making. This call for feedback and the unified classification system are yet another step forward in the Commission's long-term sustainability plan.