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ARTICLE · 15 OCTOBER 2019

EU Sustainable Finance Explained – Taxonomy

What does the proposed EU Taxonomy mean? And more importantly, what might it mean for the sector in which you are doing business?

European UnionFinance and Banking

Part II – Key Taxonomy-related takeaways

Read part 1 of this 2-part series about sustainable finance, or continue reading for part 2, in which I discuss taxonomy.

Introduction

What does the proposed EU Taxonomy mean? And more importantly, what might it mean for the sector in which you are doing business? What about its implications for investment portfolios?

Regardless of your sector, it is important to recognize that the Taxonomy and its implications concern not only the financial sector, but will have broad effects across various sectors. So far, the Taxonomy discussion has focused on key sectors with regard to climate change mitigation and adaptation, but the list will be complemented as we go. The Taxonomy is also linked to the other regulatory initiatives regarding sustainable finance, including an EU Green Bond Standard, low-carbon benchmarks and corporate disclosures.

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