If an undertaking publishes non-financial information pursuant to Article 19a or Article 29a of Directive 2013/34/EU in a separate report in accordance with Article 19a(4) or Article 29a(4) of that Directive, the information referred to in paragraphs 1 and 2 of this Article shall be published in that separate report. It directly affects all regulations i… The minimum safeguards referred to in point (c) of Article 3 shall be procedures implemented by an undertaking that is carrying out an economic activity to ensure the alignment with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights. Status of the EU Taxonomy Regulation and requirements. (29)  Directive (EU) 2019/883 of the European Parliament and of the Council of 17 April 2019 on port reception facilities for the delivery of waste from ships, amending Directive 2010/65/EU and repealing Directive 2000/59/EC (OJ L 151, 7.6.2019, p. 116). For the purposes of this Regulation, the following shall be environmental objectives: the sustainable use and protection of water and marine resources; the protection and restoration of biodiversity and ecosystems. To avoid overly burdensome compliance costs on economic operators, the Commission should establish technical screening criteria that provide for sufficient legal clarity, that are practicable and easy to apply, and for which compliance can be verified within reasonable cost-of-compliance boundaries, thereby avoiding unnecessary administrative burden. 2. Those existing schemes build on different classification systems for environmentally sustainable economic activities. 1. A Member State Expert Group on Sustainable Finance (the ‘Member State Expert Group’) shall advise the Commission on the appropriateness of the technical screening criteria and the approach taken by the Platform regarding the development of those criteria in accordance with Article 19. Officially called “Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment, … (40)  Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market (OJ L 295, 12.11.2010, p. 23). Any undertaking which is subject to an obligation to publish non-financial information pursuant to Article 19a or Article 29a of Directive 2013/34/EU shall include in its non-financial statement or consolidated non-financial statement information on how and to what extent the undertaking’s activities are associated with economic activities that qualify as environmentally sustainable under Articles 3 and 9 of this Regulation. Following publication of the Action Plan, the Commission established the Technical Expert Group on Sustainable Finance (TEG) to help carry out its goals, including the development of the EU-wide taxonomy system of environmentally sustainably activities. The EU has set climate and energy targets for 2030, and aims to be climate-neutral by 2050. For that purpose, the Commission should set up a Platform on Sustainable Finance (the ‘Platform’). (5)  Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 – the European Fund for Strategic Investments (OJ L 169, 1.7.2015, p. 1). In addition, individual Member States will need to abide by the criteria of the Taxonomy Regulation in relation to public measures, standards or labels concerning financial products or corporate bonds offered by issuers and other financial market participants which are to be labelled as environmentally sustainable. (33)  Commission Decision 2000/532/EC of 3 May 2000 replacing Decision 94/3/EC establishing a list of wastes pursuant to Article 1(a) of Council Directive 75/442/EEC on waste and Council Decision 94/904/EC establishing a list of hazardous waste pursuant to Article 1(4) of Council Directive 91/689/EEC on hazardous waste (OJ L 226, 6.9.2000, p. 3). The ESAs shall, through the Joint Committee, develop draft regulatory technical standards to specify the details of the content and presentation of the information to be disclosed pursuant to paragraphs 1 and 2 of this Article.’; ‘4. It is a classification system that enables categorization of economic activities/sectors that play key roles in climate change mitigation and adaptation. 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). The establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the action plan. However, the Bill has now fallen as it failed to complete its passage through Parliament before the end of the 2017-19 Parliamentary session. “We believe that the Commission’s … Taxonomy Regulation. The application of this Regulation should be reviewed regularly in order to assess, inter alia: the progress with regard to the development of technical screening criteria for environmentally sustainable economic activities; the possible need to revise and complement those criteria for determining whether an economic activity qualifies as environmentally sustainable; the effectiveness of the classification system for environmentally sustainable economic activities in channelling private investment into such activities and in particular as regards the flow of capital into private enterprises and other legal entities; and the further development of that classification system, including by expanding its scope beyond environmentally sustainable economic activities, in order to cover activities that significantly harm the environment, as well as other sustainability objectives, including social objectives. Member States, the European Union, and the relevant market actors will have to start complying with the Taxonomy Regulation requirements from December 2021. The delegated act on the remaining four environmental objectives should be adopted by the Commission by 31 December 2021 and will therefore apply from 31 December 2022. Article 3(3) of the Treaty on European Union aims to establish an internal market that works for the sustainable development of Europe, based, among other things, on balanced economic growth and a high level of protection and the improvement of the quality of the environment. Political agreement on the final compromise text of the Taxonomy Regulation was reached in December 2019, and the EU Parliament is expected to adopt it at some point during 2020. 2. The Platform shall take into account the views of a wide range of stakeholders. By continuing to use our website, we understand that you are happy for us to do this. (14)  Directive 2008/105/EC of the European Parliament and of the Council of 16 December 2008 on environmental quality standards in the field of water policy, amending and subsequently repealing Council Directives 82/176/EEC, 83/513/EEC, 84/156/EEC, 84/491/EEC, 86/280/EEC and amending Directive 2000/60/EC of the European Parliament and of the Council (OJ L 348, 24.12.2008, p. 84). Further, standardising the concept of environmentally sustainable investment across the EU and between Member States should facilitate investment in environmentally sustainable economic activities. The Commission shall adopt a delegated act in accordance with Article 23 to: supplement paragraph 1 of this Article by establishing technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to sustainable use and protection of water and marine resources; and. An economic activity should not qualify as environmentally sustainable if it causes more harm to the environment than the benefits it brings. The Taxonomy Regulation provides for a general framework for the development of an EU-wide classification system for environmentally sustainable economic activities. This so-called ‘EU Taxonomy for green investments’ is a regulation approved by the European Parliament and the EU Council in December that establishes the criteria for determining whether an economic activity (for example a manufacturing company) and any investment products associated to it (for example shares of corporate bonds) can be classified as environmentally sustainable. 2. EUBA members have written a joint letter to Member State authorities on the EU Taxonomy Regulation’s draft delegated act on climate-related objectives and its annexes. 5639/20 JVB/JU /vm 1 ECOMP.1.B EN REGULATION (EU) 2020/… OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of … on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (Text with EEA relevance) THE … For the purposes of point (b) of Article 3, taking into account the life cycle of the products and services provided by an economic activity, including evidence from existing life-cycle assessments, that economic activity shall be considered to significantly harm: climate change mitigation, where that activity leads to significant greenhouse gas emissions; climate change adaptation, where that activity leads to an increased adverse impact of the current climate and the expected future climate, on the activity itself or on people, nature or assets; the sustainable use and protection of water and marine resources, where that activity is detrimental: to the good status or the good ecological potential of bodies of water, including surface water and groundwater; or. On 22 June 2020, the long-awaited Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment (the “EU Taxonomy Regulation”), and amending Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR”) was published on the Official Journal of the European Union. (44)  Council Regulation (EC) No 338/97 of 9 December 1996 on the protection of species of wild fauna and flora by regulating trade therein (OJ L 61, 3.3.1997, p. 1). The Taxonomy Regulation will come into force 20 days after its publication in the Official Journal. To enhance transparency and to provide an objective point of comparison by financial market participants to end investors on the proportion of investments that fund environmentally sustainable economic activities, this Regulation supplements the rules on transparency in pre-contractual disclosures and in periodic reports laid down in Regulation (EU) 2019/2088. (28)  Directive 2012/19/EU of the European Parliament and of the Council of 4 July 2012 on waste electrical and electronic equipment (WEEE) (OJ L 197, 24.7.2012, p. 38). You may unsubscribe at any time. (15)  Council Directive 91/271/EEC of 21 May 1991 concerning urban waste water treatment (OJ L 135, 30.5.1991, p. 40). (62)  Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). The Non-Financial Reporting Directive enhances the transparency of the social and environmental information provided by undertakings in all sectors. Recalling the joint commitment of the European Parliament, the Council and the Commission to pursuing the principles enshrined in the European Pillar of Social Rights in support of sustainable and inclusive growth, and recognising the relevance of international minimum human and labour rights and standards, compliance with minimum safeguards should be a condition for economic activities to qualify as environmentally sustainable. (2)  Position of the European Parliament of 28 March 2019 (not yet published in the Official Journal) and Position of the Council at first reading of 15 April 2020 (OJ C 184, 3.6.2020, p. 1). What is the EU Taxonomy Regulation? Requirements for marketing financial products or corporate bonds as environmentally sustainable investments, including requirements set by Member States and the Union to allow financial market participants and issuers to use national labels, aim to enhance investor confidence and awareness of the environmental impact of those financial products or corporate bonds, to create visibility and to address concerns about ‘greenwashing’. in respect of the environmental objectives referred to in points (c) to (f) of Article 9 from 1 January 2023. When developing the draft regulatory technical standards referred to in the first subparagraph of this paragraph, the ESAs shall take into account the various types of financial products, their characteristics and objectives and the differences between them and, where necessary, shall develop draft amendments to the regulatory technical standards referred to in paragraph 4 of this Article. This initiative creates a classification system for sustainable economic activities (‘taxonomy’), and focuses on the EU’s environmental objectives on climate change mitigation and adaptation. advise the Commission on the technical screening criteria referred to in Article 19, as well as on the possible need to update those criteria; analyse the impact of the technical screening criteria in terms of potential costs and benefits of their application; assist the Commission in analysing requests from stakeholders to develop or revise technical screening criteria for a given economic activity; advise the Commission, where appropriate, on the possible role of sustainability accounting and reporting standards in supporting the application of the technical screening criteria; monitor and regularly report to the Commission on trends at Union and Member State level regarding capital flows into sustainable investment; advise the Commission on the possible need to develop further measures to improve data availability and quality; advise the Commission on the usability of the technical screening criteria, taking into account the need to avoid undue administrative burdens; advise the Commission on the possible need to amend this Regulation; advise the Commission on the evaluation and development of sustainable finance policies, including with regard to policy coherence issues; advise the Commission on addressing other sustainability objectives, including social objectives; advise the Commission on the application of Article 18 and the possible need to supplement the requirements thereof. A delegated act adopted pursuant to Article 8(4), 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of four months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. We are recognised as a foremost authority in law and go-to organisation for legal expertise. Additionally, investors would invest in environmentally sustainable financial products across the Union with higher confidence, thereby improving the functioning of the internal market. If financial market participants do not provide any explanation to investors about how the activities in which they invest contribute to environmental objectives, or if financial market participants use different concepts in their explanations of what an environmentally sustainable economic activity is, investors will find it disproportionately burdensome to check and compare different financial products. While the Taxonomy Regulation is a piece of EU legislation, it will likely also impact non-European financial market participants offering financial products in the EU. In that context the Commission may invite experts with specific expertise on an ad hoc basis. Official Press Release on the approval of the Regulation… On 12 July 2020, Regulation (EU) 2020/852 (the Taxonomy Regulation) came into force, bringing with it an exhaustive list of environmental objectives being: climate change mitigation; climate change adaptation; the sustainable use and protection of water and marine resources; the transition to a circular economy; In its communication of 20 June 2019 on ‘Guidelines on non-financial reporting: Supplement on reporting climate-related information’, the Commission recommends that certain large companies report on certain climate-related key performance indicators (KPIs) that are based on the framework established by this Regulation. For the criteria to be up to date, based on scientific evidence and input from experts as well as relevant stakeholders, the conditions for ‘substantial contribution’ and ‘significant harm’ should be specified with more granularity for different economic activities and should be updated regularly. The adaptation solutions referred to in point (a) of paragraph 1 shall be assessed and ranked in order of priority using the best available climate projections and shall, at a minimum, prevent or reduce: the location-specific and context-specific adverse impact of climate change on the economic activity; or. The technical screening criteria referred to in paragraph 1 shall ensure that power generation activities that use solid fossil fuels do not qualify as environmentally sustainable economic activities. The Taxonomy Regulation sets out categories of economic activities that are considered environmentally sustainable and is a cornerstone of the European Commission's Sustainable Finance Action Plan. When establishing and updating technical screening criteria for environmentally sustainable activities, the Commission should assess whether the establishment of those criteria would give rise to stranded assets or would result in inconsistent incentives, or would have any other adverse impact on financial markets. The six environmental objectives that this Regulation should cover are: climate change mitigation; climate change adaptation; the sustainable use and protection of water and marine resources; the transition to a circular economy; pollution prevention and control; and the protection and restoration of biodiversity and ecosystems. 6. (13)  Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for community action in the field of marine environmental policy (Marine Strategy Framework Directive) (OJ L 164, 25.6.2008, p. 19). 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