European Sustainable Finance framework: building back better a climate-neutral continent after Covid-19
2021 has been characterized by several developments and debates on various Sustainable Finance initiatives. Starting with the Sustainable Finance Disclosure Regulation (SFDR), the first change was the European Commission’s (EC) 12-month delay that pushed back its application date from
1st January 2022 to 1st January 2023 for the RTS Level 2 requirements due to its technical complexity and length. At the same time, the second change was the publication of the draft RTS on 22 October 2021.
The drafted Regulatory Technical Standards (RTS) differs from the previously published RTS on March 2021 in that Financial Market Participant (FMPs) and financial advisors (FAs) will have to:
✓ Report on taxonomy alignment, including and excluding their investments in sovereign bonds
✓ Define the minimum intention to be aligned with socially sustainable investment objectives
✓ Indicate if an auditor provides assurance or was subject to a third-party review for economic activities that qualify as environmentally sustainable and comply with the EU taxonomy regulation's criteria
Language: English
Price (full seminar):
1 250 USD
This is a 6-week course. Each module will be delivered every week.
Scope: Credit Institutions, Insurance, Corporations, Financial markets participants; US, UK & EU
Building back better a climate-neutral continent after Covid-19
The EU is currently pushing a significant effort to deliver a comprehensive sustainable finance regulatory framework that can push forward the European Green Deal and make the European Union the first carbon-neutral continent.
This RTS will result in higher granularity regarding product classification, with more detailed transparency requirements for SFDR Article 8 products with a portion of sustainable investment objectives. If the proportion of sustainable investments has environmental objectives, it will be subject to EU Taxonomy reporting requirements. The application date of the EU Taxonomy Regulation remains 1 January 2022 . FMPs and FAs with products subject to the EU Taxonomy will have to report on their product's environmental objectives and the proportion of their investments aligned with the EU Taxonomy and specify this proportion.
Regarding the MiFID Delegated Acts, the Delegated Regulation on organizational requirements and operating conditions will apply from 2 August 2022, while the Delegated Directive on the integration of sustainability factors into the product governance obligations will apply from 22 November 2022. Under the MiFID Delegated Regulation, banks and investment firms must consider sustainability preferences when advising investment. The investment advisor must collect and record information on the client's sustainability preferences and offer products that match these preferences. Banks and investment firms will also need to define their target market, while product manufacturers and distributors must consider sustainability objectives in the product's governance and compatibility.
Courses:
1. Corporate disclosure of climate-related information
2. EU Taxonomy of sustainable activities
3. EU Green Bonds standards issues
4. Sustainable finance: a transition to a climate neutral economy
5. Green reporting and performance management
6. ESG climate change criteria and Credit Risk Scoring
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Training Guide
On January 5th, 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force in the European Union. A large number of companies have to report on sustainability - 50.000 companies. Companies subject to CSRD will report according to the new European Sustainability Reporting Standard (ESRS).
The EU Taxonomy is a critical element of the EU's sustainable finance strategy and a vital tool in making the markets more transparent. In order to meet the 2030 European Green Deal targets in terms of making the EU the first carbon-neutral continent, it's essential to direct investments toward sustainable and clean projects. The Taxonomy Regulation entered into force on July 12th, 2020.
The European Commission (03/01/2023) recently approved the political agreement between the EU Parliament and the European Council for a European green Bond Regulation. The European Green Deal will establish a high-quality standard for green bonds in the EU. The European green ban standard (EUGBS) aligned with the Taxonomy Regulation, will help raise green capital to finance green investments.
On 13th June 2023, the European Commission issued a non-binding set of recommendations for non-financial and financial companies to guide them on using the non-binding sustainable toolbox to transition to a new model. The European Commission published measures that strengthen the foundation of a more sustainable European economy.
The European Sustainable Finance strategy and the EU Green Deal give a unique opportunity for European 'companies to make their business model more sustainable, and meet market requirements at the same time. ESG can bring better decision-making. It can also boost the reputation of your organization and deliver a sustainable value chain.
The growing concern over climate change in the past years and around ESG considerations still doesn't allow a user of credit ratings to draw a conclusion on the credit rating in the absence of global warming or climate change risk Transparency definitions and ECAls or other asset classes can possibly have an impact on risk ratings.
Don't miss your next regulatory compliance deadline!
The best way to address regulatory change is by accepting that new legislation is a natural progression. Nothing ever stays the same, and as we move forward, these regulations will continue to evolve. Our regulatory poster and accompanying explanations will help you navigate this changing regulatory landscape. We invite you to explore how your business activities will be affected by our Compliance Vision specialists so that you can stay ahead of the regulatory curve.
