The EU Taxonomy Regulation—one-minute guide
Produced in partnership with Philippa List of Dechert and Mikhaelle Schiappacasse of Dechert
The EU Taxonomy Regulation—one-minute guide

The following Financial Services practice note produced in partnership with Philippa List of Dechert and Mikhaelle Schiappacasse of Dechert provides comprehensive and up to date legal information covering:

  • The EU Taxonomy Regulation—one-minute guide
  • What is the law/regulation?
  • What is its scope and impact?
  • What is the timeline?
  • What are the key considerations for asset managers?
  • What next?
  • The impact of Brexit
  • Recent developments

The EU Taxonomy Regulation—one-minute guide

This one minute guide, written in partnership with Philippa List, professional support lawyer, and Mikhaelle Schiappacasse, partner at Dechert, analyses the scope and impact of the Taxonomy Regulation, and considerations for asset managers.

What is the law/regulation?

In December 2019 the European Council and the European Parliament reached political agreement on the text of a proposed Regulation on the Establishment of a Framework to Facilitate Sustainable Investment—the so-called ‘Taxonomy Regulation’. The Taxonomy Regulation (Regulation (EU) 2020/852) was published in the Official Journal of the EU on 22 June 2020, following its adoption by the European Parliament on 18 June 2020, and entered into force on 12 July 2020.

What is its scope and impact?

The Taxonomy Regulation establishes an EU-wide classification system or ‘framework’ intended to provide businesses and investors with a common language to identify to what degree economic activities can be considered environmentally sustainable. It aims to ‘provide clarity and transparency on environmental sustainability to investors, financial institutions, companies and issuers thereby enabling informed decision-making in order to foster investments in environmentally sustainable activities’.

While the majority of the Taxonomy Regulation will impact asset managers who make available a “financial product” which either (a) has environmental sustainability as its objective; or (b) promotes environmental characteristics, the Taxonomy Regulation also states that financial market participants The Taxonomy Regulation refers to the definition in

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