The European Securities and Markets Authority (ESMA) has released an updated sustainable finance implementation timeline, addressing the uncertainty surrounding the European Commission’s review of the Sustainable Finance Disclosure Regulation (SFDR) Level 1. The updated timeline outlines key regulations driving sustainable finance in the EU, including:
- Taxonomy Regulation (EU 2020/852): Establishes a framework to facilitate sustainable investment.
- Sustainability-Related Disclosures Regulation (SFDR) (EU 2019/2088): Mandates sustainability disclosures in the financial services sector.
- Corporate Sustainability Reporting Directive (CSRD) (EU 2022/2464): Requires companies to report on their sustainability practices.
- Benchmarks Regulation (EU 2016/1011): Governs the use of indices in financial instruments and contracts.
- European Green Bonds Regulation (EU 2023/2631): Introduces optional disclosures for bonds marketed as environmentally sustainable or sustainability-linked.
This update reflects ESMA’s efforts to provide clarity on regulatory changes as the EU continues to refine its sustainable finance framework. It emphasizes the evolving landscape of ESG reporting and its impact on financial institutions, businesses, and investors aiming for sustainable growth.
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Source: ESMA
