Legal & Regulatory News

ICMA publishes overview and recommendations for sustainable finance taxonomies

On 18 May 2021, the International Capital Market Association (ICMA) published a paper providing an overview of taxonomies for sustainable finance and recommending success criteria to benchmark current and future taxonomy initiatives, with the objective of promoting international consistency and market usability.

This paper provides an international overview of both official taxonomies, including those from the EU and China, and market-based taxonomies, summarising the various approaches that have been taken as well as the different objectives that are being pursued.

The key success criteria proposed recommend that taxonomies should be:

1. Targeted in their purpose and objectives.
2. Additional in relation to existing international frameworks.
3. Usable by the market for all intended purposes.
4. Open and compatible with complementary approaches and initiatives.
5. Transition-enabled incorporating trajectories and pathways.

Click here to access the paper.