Regulation (EU) 2019/2088 – Disclosure Requirements A Step Towards A Sustainable Economy.

On 9 December 2019, Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019, on sustainability-related disclosures in the financial services sector, was published in the official journal of the European Union. Regulation 2019/2088 (2019/2088) provides further evidence of the commitment of the EU to the 'Paris Agreement' which entered into force on 4 November 2016.

At its core the 'Paris Agreement' seeks to address climate change issues by, inter alia, encouraging the flow of finance along a pathway which encourages low carbon emission, more resource-efficient and, more sustainable economic development. To this end, the disclosure of information to existing and potential investors on the integration of sustainability risks, on the consideration of possible adverse sustainability impacts, on sustainable investment objectives or, on the promotion of environmental or social characteristics, in investment decision-making and in investment