ESG – EU agrees taxonomy

On 17 December 2019, following protracted trilogue negotiations (including a last minute rejection by the Council of the EU), agreement was reached on a revised text for the EU’s Framework Regulation (also called the Taxonomy Regulation).

Following this development, the PRI published a briefing paper, "EU Sustainable Finance Taxonomy" which outlines the key changes that the Framework Regulation brings about. These include:

• how the EU Taxonomy functions within the Framework Regulation;
• its background and development;
• who the Framework Regulation affects; and
• what changes have been included in the revised text.

Next steps

The Council of the EU and the European Parliament will now each adopt the revised text before it proceeds to publication in the Official Journal of the EU.

We will publish further details of the impact of the Framework Regulation in due course.

For further information on Sustainable Financing and ESG investment please see our Insights Feature here, or speak to your usual Simmons & Simmons contact.