On April 21, 2021, the European Commission adopted a package of measures designed to help improve the flow of money for sustainable activities across the European Union.
- EU Taxonomy Climate Delegated Act:
This aims to support sustainable investment by defining which economic activities contribute most to the achievement of the EU’s environmental objectives. [Note: The term “taxonomy” is NOT used here in the sense of the term “XBRL taxonomy”]
- Corporate Sustainability Reporting Directive (CSRD, proposal) A proposal for a corporate sustainability reporting directive (CSRD). This proposal aims to improve the flow of sustainability information to financial companies and investors (comparable and reliable sustainability information)
- Finally, six delegated amendment laws on fiduciary duties, investment and insurance advice are intended to ensure that financial companies, e.g. consultants, asset managers or insurers, incorporate sustainability information into their processes and their investment advice for clients.
It is of particular importance that the target group of the Corporate Sustainability Reporting Directive affected companies goes far beyond the companies listed on the European stock exchanges (around almost 6000) and also affects “larger” companies – allegedly around 50,000 companies (more informations).