The EU Sustainable Finance Action Plan is the EU’s strategy for sustainable finance and is part of the implementation plan of Article 2(1)(c) of the Paris Agreement and the UN 2030 Agenda for Sustainable Development. It aims to:
Reorient capital flows towards sustainable investments in order to achieve sustainable and inclusive growth
Manage financial risks stemming from climate change, resource depletion, environmental degradation and social issues
Foster transparency and long-termism in financial and economic activity
Sustainalytics’ research aligns with the following three components of the EU Action Plan:
EU Taxonomy
EU Benchmarks
Sustainable Finance Disclosure Regulation
To aid investors’ thinking on the upcoming EU Action Plan regulations, Sustainalytics’ dedicated Resource Center brings together our research-based insights on these three components. This page will be regularly updated with new insights. We hope you find it useful.
Please contact us if you have any questions or want to learn how Sustainalytics can help you comply with the EU Action Plan regulations.
Featured Content
ESG Policy Perspective: Regulatory Developments from Across the Globe
ESG Policy Perspective provides investors with an overview of the most recent regulatory developments across the globe on regular bases. In our first publication, we examine the evolving taxonomy frameworks across APAC, UK and EU regions and upcoming disclosure requirements for investors.
EU Action Plan Q1 Updates: SFDR Review and Investor’s Challenges
In this webinar, we will take a look at the evolution of sustainable funds in the first quarter of 2023, and review fund flows into Article 8 & 9 funds. We will then explore the latest regulatory updates around the EU Action Plan and the discussions around ESG labelling. Our speakers will discuss the different approaches of disclosures versus labelling and the benefits and shortcomings of each for combatting greenwashing.
Webinars and Videos
Morningstar and Sustainalytics’ policy and regulatory experts are hosting a series of webinars to help our clients navigate the complexities of the EU Action Plan and related regulations.
EU ACTION PLAN Q1 UPDATES: Webinar Replay
In this webinar, we will take a look at the evolution of sustainable funds in the first quarter of 2023, and review fund flows into Article 8 & 9 funds.
Sustainable Investments: Definition, Key Components and Current Approaches
The term "sustainable investments," as defined in the European Union’s Sustainable Finance Disclosure Regulation (SFDR), is a key concept in the EU Action Plan for Sustainable Finance. However, the definition of what is a sustainable investment is unclear, leaving asset managers to use their own approaches. In our video, Anne Schoemaker, Director of ESG product at Morningstar Sustainalytics, answers the most frequent questions about sustainable investments, including the definition, different approaches, and what investors can expect from the European Commission in 2023.
Thought Leadership Insights
Sustainable Finance Disclosure Regulation: An Industry Game-changer
In recent months, the Sustainable Finance Disclosure Regulation (SFDR) has been sparking almost as much debate as the EU Taxonomy – both cornerstone regulations of the EU Sustainable Finance Action Plan. With the SFDR set to redefine ESG disclosures and make a significant impact on financial market participants in Europe, the short timeline and ambiguity on several vital details are creating confusion and concern in the industry. The risk of organizations not being able to comply in time is still present, despite the announced delay in timelines for the technical standards, as is the risk of high financial and operational costs for the industry.
EU Sustainable Finance Action Plan: Final Taxonomy Report Published and Other Developments
The highly anticipated final report by the TEG (Technical Expert Group) on the EU Taxonomy was published in early March, followed by a stakeholder information session. You can read our blog post on last fall’s developments here.
EU Action Plan Guidance Document
The proposed Taxonomy is a classification tool to help investors and companies make informed investment decisions on environmentally friendly economic activities. It is a list of economic activities, which defines performance criteria for six environmental objectives.
Sustainable Finance and the EU Taxonomy: Developments from the Trilateral Negotiations
As global leaders meet in Madrid for the COP25 amid mounting concern over the international response to climate change, the EU Taxonomy experienced a setback with the UK and France blocking the plans. The new framework, intended to drive financial flows that will accelerate the shift to a low carbon future, will likely become a global standard affecting investors around the world. If enacted, it could cement the EU’s position as the world’s pace setter on climate legislation.
eBooks
Morningstar Sustainalytics Solutions
Sustainalytics is committed to helping investors comply with EU Action Plan regulations. We currently offer a Benchmark mapping service for the Benchmark Regulation and a Taxonomy data service for the Taxonomy Regulation. To learn more, visit our EU Action Plan solutions page.
Regulatory Updates
Sign up to receive Morningstar’s International Regulatory Watch Newsletter (Note: Link directs to Morningstar’s website). Read a round-up of releases over the last quarter from regulators around the globe on a range of topics from fund pricing to disclosure to new market studies.