Don't panic! Over recent months the Sustainable Finance Disclosure Regulation and the EU Taxonomy have seen many updates, delegated acts, political discussions, and confusing headlines. The creation of this EU sustainable finance legislation is sometimes compared to the manufacturing of an electric car: right now the cables and wires are all over the place, but once it's done, we can drive off smoothly with the press of a button.
But why wait for the electric car to be finished if we can already start hitchhiking? In the famous novel, The Hitchhiker's Guide to the Galaxy, the story's great Encyclopaedia Galactica was supplanted as the repository of all knowledge and wisdom by a guide that was slightly cheaper and had the words 'DON'T PANIC' inscribed in large, friendly letters on its cover. There is no reason to panic here either, and below follows a hitchhiker's guide to the latest SFDR and EU Taxonomy and how financial institutions can navigate the dynamic road ahead. We don't have much time to lose.
The Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy Regulation (EUT) are cornerstones of the EU's Sustainable Finance Strategy.
While the regulations have entered into force, their reporting requirements and to which financial institutions (and advisors) they apply to and by when are still in flux. Download our guide at the side of this page for a concise overview.
By taking early action now and preparing for incoming regulations, financial institutions can:
We are sustainable finance and climate experts.We can help you navigate current reporting requirements, and pave the way for future ones.
The EU Taxonomy is a dynamic piece of legislation which can sometimes feel like a space jungle of acronyms and stacks of legislation. Similarly, financial accounting and disclosure standards have taken many decades and overlapping initiatives to develop. For example, to this day US GAAP and international accounting bodies have not fully converged and remain to some degree in flux. Ambitious sustainability standards can be expected to develop similarly, but we have little time to lose. New mindsets and navigation tools can help us start hitching rides while the vehicle is being finished.
Written thanks to contributions from Shrieya Mehra and Andrea Crosswell Patlan.
“Don’t panic. Do get in touch with us! We offer free 30 minute consultations to help you start hitting the EU regulatory road.”
Download our guide to the Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy Regulation (EUT)