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A digital transformation of the sustainability information flows (

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The document discusses the EU's sustainability journey and various related regulations and standards. It outlines the EU's goal of reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels through policies like the European Green Deal. It also discusses several EU regulations and standards aimed at facilitating sustainable finance, including the EU Taxonomy which defines sustainable economic activities, the Sustainable Finance Disclosure Regulation which mandates sustainability reporting, and the potential EU Green Bond Standard. The overall aim is to align efforts towards a more sustainable global system and accelerate progress on issues like climate change.

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The EU Sustainability Journey Understanding

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https://adviseers.com Vision ● We facilitate progress towards a global system by ensuring efforts made by sustainability ecosystem stakeholders are aligned with global innovations and best practices in digitization and electronic business reporting for the public good. Mission ● We work with non-profit foundations and funders to accelerate alignment, between a wide range of worldwide stakeholders, to achieve real progress towards a global digitized reporting and disclosure ecosystem. ● We collaborate and partner with sustainability ecosystem stakeholders to facilitate the development of a global system that meets the needs of all constituencies and markets. This ensures sustainability ecosystem stakeholders speak with a unified and authoritative voice, including about the digital relationships between standards of practice, performance, and benchmarking.

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Disclaimer We are sharing our insight into Understanding the EU Sustainability Journey as dynamic content available to you under the banner of a Creative Commons Attribution 4.0 International Licence. This means you can freely use it, share it, and improve upon it as long as you properly attribute this original source. We hope you benefit from and enjoy learning about the global green movement as much as we enjoy creating it for you. We’d love to hear what you think, so please so get in touch! And, subscribe to the mailing list to get notifications on all new content releases throughout the year! Liv and David https://adviseers.com

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Table of Contents ● The EU Green Journey ● The EU Blue Economy ● The EU Benchmarks Regulation ● The EU Taxonomy Standard ● The EU Green Bond Standard ● The Sustainable Finance Disclosure Regulation (SFDR) ● Climate Action Get Involved

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Learning objectives ● Understand what the European Commission means with a New Geen Agenda ● Highlight from key legislations

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The EU Green Journey

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The European Commission has adopted a set of proposals to make the EU's climate, energy, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The European Commission GREEn Agenda

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The EU GREEN economy Source: https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en Defined: A green economy is one that generates increasing prosperity while maintaining the natural systems that sustain us. Financing: One third of the 1.8 trillion euro investments from the NextGenerationEU Recovery Plan, and the EU’s seven-year budget will help finance the European Green Deal. AN ECONOMY THAT WORKS FOR PEOPLE .. Action Plan: Financing Sustainable Growth

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Source: https://www.switch-asia.eu/site/assets/files/2388/whatistheeuropeangreendeal_for_eu_ms.pdf The EU Green Deal

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Source: https://www.consilium.europa.eu/en/infographics/fit-for-55-how-the-eu-delivers-the-green-transition/ The EU Green transition

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“Fit for 55 Package” - The European Climate Law bindingtargetofachievingclimateneutralityby2050 ● On July 21, 2021, the Regulation on a European Climate Law, which codifies the European Union’s (EU’s) goal to become climate neutral by 2050 as a legally binding obligation, entered into force. ● The Law sets a total greenhouse gas (GHG) emissions reduction target of 55% by 2030 compared to 1990 levels. ● On July 14, 2021, the European Commission presented a series of legislative proposals, the “Fit for 55 package,” which describes the measures the Commission will take to reach the 2030 target. Source: https://www.consilium.europa.eu/en/policies/green-deal/eu-plan-for-a-green-transition/

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The BLUE Economy

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The blue economy Source: https://ec.europa.eu/commission/presscorner/detail/en/fs_21_2355

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Green Finance Standards and Benchmarks

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Two investment benchmarks Source: https://ec.europa.eu/commission/presscorner/detail/en/fs_21_2355 1. The EU Climate Transition Benchmark (EU CTB) 2. The EU Paris-aligned Benchmark (EU PAB) MAIN Objectives: A. Allow a significant level of comparability of climate benchmarks methodologies while leaving benchmarks’ administrators with an important level of flexibility in designing their methodologies. B. Provide investors with an appropriate tool that is aligned with their investment strategy. C. Increase transparency on investors’ impact, specifically with regard to climate change and the energy transition. D. Disincentivize greenwashing.

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Green Finance Standards and the EU Taxonomy

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The EU TaxonomyRegulation (TR) ● The Taxonomy Regulation (TR) ● The world’s first official system to define and classify a list of 67 environmentally sustainable economic activities, which are responsible for 93.2% of carbon emission. ● The aim is to orientate and improve the flow of money towards more sustainable activities. ● A guidelines as to what can be classified as ‘green’ ● Requires certain entities to disclose information concerning the degree of alignment of their activities with the Taxonomy Six environmentalobjectives Source: https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/200309-sustainable-finance-teg-final-report-taxonomy_en.pdf

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The IPSF’s Common Taxonomy

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The International Platform on Sustainable Finance (IPSF) & The Common Ground GREEN Taxonomy Source:https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance/international-platform-sustainable-finance_en The ultimate objective of the IPSF is to scale up the mobilisation of private capital towards environmentally sustainable investments.

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The EU Green Bond Standard

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The European green deal investment plan of 14 January 2020 announced that the Commission would establish a voluntary EU green bond standard (EUGBS). Source: https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance/european-green-bond-standard_en Proposal for a European green bond standard

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The standard would solve several barriers in the current market, including reducing uncertainty on what is green by linking it with taxonomy, standardising verification and reporting processes, and having an official standard to which incentives could be attached Voluntary green bond standard

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Sustainable Finance Disclosure Regulation (SFDR)

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Sustainable Finance Disclosure Regulation (SFDR) ● The SFDR will create a structural change in financial markets by making sustainability reporting mandatory and will push investment firms marketing ESG funds to change the way they produce, sell and market products. ● It will force portfolio managers to assess sustainability-related risks in their investments. ● Asset managers, pension funds and insurers must disclose how they consider ESG risks in their investment decisions. Timeline 1 2 3 4 5 6 03.10.2021 06.30.2021 2022 2023 June302023 June302024 Enforcement Data Latest data by which FMPs and FAs must start considering principle adverse impact First Reference Data Second Reference Data Due date for the report about the first reference period Due date for the report about the first reference period + comparison

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Climate ActionGet Involved!

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GET INVOLVED

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GET INVOLVED Climate Pact Ambassador Role: ● Inform, inspire and support climate action in their communities and networks. ● Reach out to people and/or organisations who are not yet involved in climate action. ● Become a bridge between civil society, interested stakeholders and the European Commission Make a Pledge Learn & Educate Role: ● All Europeans will be able to take a ‘step’ to reduce their own carbon footprint via the Count Us In platform ● The 16 steps have been selected with experts from the UN Environment Programme as the most effective ways for individuals to reduce carbon pollution. Role: ● Register for a satellite event or host an event that would allow for discussions and focus on specific topics or highlight the role of particular groups or sectors in the Climate Pact. Source: https://europa.eu/climate-pact/ambassadors/become-ambassador_en#:~:text=inform%2C%20inspire%20and%20support%20climate%20action%20in%20their%20communities%20and%20networks.%20Anyone%20can%20apply!

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The next topic RELEASE will be: UNDERSTANDING The European Sustainability Reporting Standard

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About the authors 29 - Liv A. Watson Managing Director, Adviseers SAS on secondment to Impact Management Project David Wray President of the DFCG International Group https://www.linkedin.com/in/livwatson/ https://www.linkedin.com/in/david-w-29627882/

More Related Content

A digital transformation of the sustainability information flows (

  • 1. The EU Sustainability Journey Understanding
  • 2. https://adviseers.com Vision ● We facilitate progress towards a global system by ensuring efforts made by sustainability ecosystem stakeholders are aligned with global innovations and best practices in digitization and electronic business reporting for the public good. Mission ● We work with non-profit foundations and funders to accelerate alignment, between a wide range of worldwide stakeholders, to achieve real progress towards a global digitized reporting and disclosure ecosystem. ● We collaborate and partner with sustainability ecosystem stakeholders to facilitate the development of a global system that meets the needs of all constituencies and markets. This ensures sustainability ecosystem stakeholders speak with a unified and authoritative voice, including about the digital relationships between standards of practice, performance, and benchmarking.
  • 3. Disclaimer We are sharing our insight into Understanding the EU Sustainability Journey as dynamic content available to you under the banner of a Creative Commons Attribution 4.0 International Licence. This means you can freely use it, share it, and improve upon it as long as you properly attribute this original source. We hope you benefit from and enjoy learning about the global green movement as much as we enjoy creating it for you. We’d love to hear what you think, so please so get in touch! And, subscribe to the mailing list to get notifications on all new content releases throughout the year! Liv and David https://adviseers.com
  • 4. Table of Contents ● The EU Green Journey ● The EU Blue Economy ● The EU Benchmarks Regulation ● The EU Taxonomy Standard ● The EU Green Bond Standard ● The Sustainable Finance Disclosure Regulation (SFDR) ● Climate Action Get Involved
  • 5. Learning objectives ● Understand what the European Commission means with a New Geen Agenda ● Highlight from key legislations
  • 6. The EU Green Journey
  • 7. The European Commission has adopted a set of proposals to make the EU's climate, energy, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The European Commission GREEn Agenda
  • 8. The EU GREEN economy Source: https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en Defined: A green economy is one that generates increasing prosperity while maintaining the natural systems that sustain us. Financing: One third of the 1.8 trillion euro investments from the NextGenerationEU Recovery Plan, and the EU’s seven-year budget will help finance the European Green Deal. AN ECONOMY THAT WORKS FOR PEOPLE .. Action Plan: Financing Sustainable Growth
  • 11. “Fit for 55 Package” - The European Climate Law bindingtargetofachievingclimateneutralityby2050 ● On July 21, 2021, the Regulation on a European Climate Law, which codifies the European Union’s (EU’s) goal to become climate neutral by 2050 as a legally binding obligation, entered into force. ● The Law sets a total greenhouse gas (GHG) emissions reduction target of 55% by 2030 compared to 1990 levels. ● On July 14, 2021, the European Commission presented a series of legislative proposals, the “Fit for 55 package,” which describes the measures the Commission will take to reach the 2030 target. Source: https://www.consilium.europa.eu/en/policies/green-deal/eu-plan-for-a-green-transition/
  • 13. The blue economy Source: https://ec.europa.eu/commission/presscorner/detail/en/fs_21_2355
  • 15. Two investment benchmarks Source: https://ec.europa.eu/commission/presscorner/detail/en/fs_21_2355 1. The EU Climate Transition Benchmark (EU CTB) 2. The EU Paris-aligned Benchmark (EU PAB) MAIN Objectives: A. Allow a significant level of comparability of climate benchmarks methodologies while leaving benchmarks’ administrators with an important level of flexibility in designing their methodologies. B. Provide investors with an appropriate tool that is aligned with their investment strategy. C. Increase transparency on investors’ impact, specifically with regard to climate change and the energy transition. D. Disincentivize greenwashing.
  • 16. Green Finance Standards and the EU Taxonomy
  • 17. The EU TaxonomyRegulation (TR) ● The Taxonomy Regulation (TR) ● The world’s first official system to define and classify a list of 67 environmentally sustainable economic activities, which are responsible for 93.2% of carbon emission. ● The aim is to orientate and improve the flow of money towards more sustainable activities. ● A guidelines as to what can be classified as ‘green’ ● Requires certain entities to disclose information concerning the degree of alignment of their activities with the Taxonomy Six environmentalobjectives Source: https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/200309-sustainable-finance-teg-final-report-taxonomy_en.pdf
  • 19. The International Platform on Sustainable Finance (IPSF) & The Common Ground GREEN Taxonomy Source:https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance/international-platform-sustainable-finance_en The ultimate objective of the IPSF is to scale up the mobilisation of private capital towards environmentally sustainable investments.
  • 20. The EU Green Bond Standard
  • 21. The European green deal investment plan of 14 January 2020 announced that the Commission would establish a voluntary EU green bond standard (EUGBS). Source: https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance/european-green-bond-standard_en Proposal for a European green bond standard
  • 22. The standard would solve several barriers in the current market, including reducing uncertainty on what is green by linking it with taxonomy, standardising verification and reporting processes, and having an official standard to which incentives could be attached Voluntary green bond standard
  • 24. Sustainable Finance Disclosure Regulation (SFDR) ● The SFDR will create a structural change in financial markets by making sustainability reporting mandatory and will push investment firms marketing ESG funds to change the way they produce, sell and market products. ● It will force portfolio managers to assess sustainability-related risks in their investments. ● Asset managers, pension funds and insurers must disclose how they consider ESG risks in their investment decisions. Timeline 1 2 3 4 5 6 03.10.2021 06.30.2021 2022 2023 June302023 June302024 Enforcement Data Latest data by which FMPs and FAs must start considering principle adverse impact First Reference Data Second Reference Data Due date for the report about the first reference period Due date for the report about the first reference period + comparison
  • 27. GET INVOLVED Climate Pact Ambassador Role: ● Inform, inspire and support climate action in their communities and networks. ● Reach out to people and/or organisations who are not yet involved in climate action. ● Become a bridge between civil society, interested stakeholders and the European Commission Make a Pledge Learn & Educate Role: ● All Europeans will be able to take a ‘step’ to reduce their own carbon footprint via the Count Us In platform ● The 16 steps have been selected with experts from the UN Environment Programme as the most effective ways for individuals to reduce carbon pollution. Role: ● Register for a satellite event or host an event that would allow for discussions and focus on specific topics or highlight the role of particular groups or sectors in the Climate Pact. Source: https://europa.eu/climate-pact/ambassadors/become-ambassador_en#:~:text=inform%2C%20inspire%20and%20support%20climate%20action%20in%20their%20communities%20and%20networks.%20Anyone%20can%20apply!
  • 28. The next topic RELEASE will be: UNDERSTANDING The European Sustainability Reporting Standard
  • 29. About the authors 29 - Liv A. Watson Managing Director, Adviseers SAS on secondment to Impact Management Project David Wray President of the DFCG International Group https://www.linkedin.com/in/livwatson/ https://www.linkedin.com/in/david-w-29627882/