Legal & Regulatory News

EU Platform on Sustainable Finance publish recommendations on data and usability of the EU Taxonomy

On 11 October 2022, the EU Platform on Sustainable Finance (the Platform) published a report (the Report) on their recommendations on data and the usability of the EU Taxonomy.

In the Report, the Platform identified a number of usability issues in relation to the EU Taxonomy, including:-

• misalignment between sustainable finance reporting requirements across the regulatory framework, including differing definitions of ‘sustainable investment’, ‘do no significant harm’, ‘good governance’ and risk approaches;
• sequencing issues across the reporting framework;
• regulatory overload, and the need to ensure that regulatory requirements are evenly distributed and proportional across all stakeholder groups;
• interpretive issues; and
• regulatory and data gaps, which are making access to the Taxonomy hard to implement.

Within the Report, the Platform also set out its recommendations by level of priority (High, Medium, Low) in relation to the current issues with data and the usability of the EU Taxonomy, including recommendations for the European Commission and European Supervisory Authorities to consider to support near-term Taxonomy implementation in the market.

Click here to view the Report.