April 21, 2021. The European Commission adopted a package of measures 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 achieving the EU’s environmental goals. [Note: The term taxonomy is NOT used here in the sense of the term “XBRL taxonomy”]
• Corporate Sustainability Reporting Directive (CSRD, draft). 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. advisors, asset managers or insurers, incorporate sustainability information into their procedures and investment advice to customers.

It is particularly important that the target group of companies affected by the Corporate Sustainability Reporting Directive goes far beyond the companies listed on the European stock exchanges (around almost 6,000) and also affects “larger” companies – supposedly around 50,000 companies (more information).

Source: European Commission, press release, “Sustainable Finance and EU Taxonomy: Commission takes further steps to channel money towards sustainable activities”, 21.04.2021