Compliance with ESG standards

Reminder of upcoming regulations in the European Union

Upcoming regulations

Sustainable Finance Disclosure Regulation
Effective date in 10 march 2021

Financial market players will be obliged to disclose their procedures of integrating ESG factors into their investment processes and advisory activities.

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Clarification of environmental standards
Effective date in december 2021

Company environmental ratings will need increased transparency with regard to the effects of their activities on climate change.

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The Paris Agreements (COP 21) and stock market indices
Effective date in December 2021

Benchmark providers will have to provide more information showing the alignment of their methodologies vis-à-vis the Paris Agreement carbon emission reduction target.

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Creation of ecological transition stock market benchmarks
Effective date in january 2022

European financial market operators providing benchmarks will be asked to disclose the progress to Climate-Transition Benchmark(s) (CTB).

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New environmental standards in ESG rating
Effective date in december 2022

Standardisation for the sustainable use and protection of marine resources, the transition to a circular economy, pollution prevention and control, and the protection of healthy ecosystems must be established by December 2021.

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Structuring of ecological transition stock market indicesque
Effective date in december 2022

CTB administrators will be required to highlight, weigh or exclude altogether those assets creating pollution.

Measures under study

ECB guidance on ESG risks
Finished since September 25, 2020

The ECB published a guide that explains how banks are expected to prudently manage and disclose climate-related risks.

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European Green Bond Standard
Finished since October 1, 2020

The EU Commission is exploring a legislative initiative for an EU green bond standard.

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Directive on Non-Financial Reporting
First quarter 2021

The EU Commission is reviewing the non-financial reporting directive, which requires large companies to disclose information regarding their activities and the management of social and environmental challenges.

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European Ecolabel
Transition from January 1 to December 31, 2021

Amendments to the EU Ecolabel framework for financial products will establish a new EU-wide label linking the EU taxonomy.
Once adopted, there will be a year-long transition period to incorporate the new labelling scheme.