Legal & Regulatory News

European Securities and Markets Authority publishes three explanatory notes on the EU’s Sustainable Finance framework.

On 22 November 2023, the European Securities and Markets Authority (ESMA) published three explanatory notes on the EU’s Sustainable Finance framework. The explanatory notes are intended to increase the ease of access to the EU Sustainable Finance framework and are therefore intended as educational or reference tools, rather than a revision of the key terms included in the EU’s legislation.

The explanatory notes cover the following matters:-

1. Concepts of sustainable investments and environmentally sustainable activities in the EU Sustainable Finance framework;
2. ‘Do No Significant Harm’ definitions and criteria across the EU Sustainable Finance framework; and
3. Concept of estimates across the EU Sustainable Finance framework.

The explanatory notes include guidance on how the terms sustainable investments, environmentally sustainable activities, ‘Do No Significant Harm’, and estimates are defined and applied across the EU Sustainable Finance framework including in the EU Taxonomy, Sustainable Finance Disclosure Regulation and the Benchmarks Regulation.

A table is included in each of the explanatory notes explaining which stakeholders the principle or concept applies to; the scope of application; and what the application of the principle or concept entails.

Click here to read ‘Concepts of sustainable investments and environmentally sustainable activities in the EU Sustainable Finance framework’.

Click here to read ‘‘Do No Significant Harm’ definitions and criteria across the EU Sustainable Finance framework’.

Click here to read ‘Concept of estimates across the EU Sustainable Finance framework’.