Reaching political agreement in December 2019 on the so-called ‘taxonomy regulation’ marked an important milestone in the EU Sustainable Finance Action Plan. The taxonomy is a highly ambitious initiative, straying beyond the boundaries of mainstream financial services regulation by establishing four criteria for determining what constitutes environmentally sustainable activity in the real economy. Firms will welcome the clarity this will bring, given the role it will play in helping them meet new regulatory obligations being introduced under the Action Plan. But while the process may be politically complete, there is still much work to be done as regulators move onto Level 2 technical standards.

Read the full blog post by Lucas Penfold, PwC