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ARTICLE · 01 APRIL 2021

EU Taxonomy Regulation: What To Expect

Morrison Foerster
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Our previous Client Alert of 10 March 2021 discussed the Sustainable Finance Disclosure Regulation (SFDR) and its implications for the real economy.

European UnionEnvironment
Angela Kerek
Angela Kerek
Matthew Dunlap
Matthew Dunlap
Caroline Jury
Caroline Jury
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Based on research provided by ECOFACT

Our previous Client Alert of 10 March 2021 discussed the Sustainable Finance Disclosure Regulation (SFDR) and its implications for the real economy.

This Client Alert reviews how EU Regulation 2020/852 on the establishment of a framework to facilitate sustainable investment (the Taxonomy) impacts companies in their capacities as investees, borrowers, and issuers.

KEY TAKEAWAYS

  • The Taxonomy seeks market harmonization by creating legal criteria to classify economic activities as environmentally sustainable. While the Taxonomy is a technical document with only a few disclosure obligations for companies, it requires robust preparatory work, including thorough data collection and analysis.

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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