The advisory body to the European Commission has published a report setting the direction for future priorities on the implementation of the EU sustainable finance framework.
The EU sustainable finance framework is being picked up by different market actors as an effective toolkit to navigate the transition to net zero.
The report, “A Compendium of Market Practices”, focuses on seven stakeholder groups (corporates, credit institutions, investors, insurers, auditors and consultants, small- and medium-sized enterprises, and the public sector), showing that the EU Taxonomy and the other sustainable finance tools (e.g. the EU Green Bond Standard) is being used for setting transition strategies, structuring financial transactions and reporting on sustainability efforts.
The report is accompanied by an annex, which includes concrete case studies for each stakeholder group - including nine investor case studies covering a range of asset classes (real estate, infrastructure, listed equity) and practices (due diligence, transition planning, reporting). The case studies highlight the first evidence that the EU sustainable finance framework is working on the ground and shows how market actors are using it including beyond regulatory compliance. It also identifies some data and implementation challenges regarding the EU Taxonomy and wider framework, which need to be further improved to fully support financial and non-financial actors in transitioning their business models to align with the EU’s sustainability objectives.
PRI, as an observer member to the Platform, played an important role in coordinating the various case studies and providing analysis for the summary report.
The Compendium of market practices will set the direction for future priorities on the implementation of the EU sustainable finance framework.
The report provides peer-to-peer recommendations to further scale up the impact and enhance the value and benefits of the EU Taxonomy and the broader EU sustainable finance framework. It also recommends concrete actions for the Platform as advisor to the Commission to continue supporting stakeholders in their implementation efforts. Building on the report, the Commission will work closely with the Platform to monitor the uptake of the different sustainable finance tools and provide guidance to make the application of the framework as easy and effective as possible.