Legal & Regulatory News

European Commission adopts delegated act containing disclosure obligations under Taxonomy Regulation

On 6 July 2021, the European Commission adopted a delegated act (C(2021) 4987 final) (the Delegated Act) in supplement of Article 8 of the Taxonomy Regulation ((EU) 2020/852). The Delegated Act sets out the content, methodology and presentation of the key performance indicators that non-financial and financial undertakings are required to disclose under Article 8 of the Taxonomy Regulation.

The Delegated Act is subject to a four month scrutiny period, which can be extended by a further two months by the European Parliament and Council. If no objections are raised, the Delegated Act will be published in the Official Journal and enter into force 20 days after that.

From 1st January 2022 for the reporting period 2021, financial and non-financial institutions will be required to disclose certain qualitative information and information on taxonomy-eligible activities. However, the requirements for disclosures relating to taxonomy-alignment have been delayed slightly. The requirements of the Delegated Act relating to taxonomy-alignment will now apply fully to non-financial undertakings from 1 January 2023 for the reporting period 2022 and from 1 January 2024 for the reporting period 2023 to financial undertakings.

Click here to view the Delegated Act.