green investing taxonomy

Global asset managers appreciate the framework provided by the green investing taxonomy and SFDR, even if more needs to be done to flesh these out. There is also awareness that Asia is central if global environmental and social concerns are to be addressed. These were some of the broad themes from the “Disclosure Regulations & Their Impacts” panel at the recent Luxembourg for Finance Sustainable Finance Forum. 

Does the green investing taxonomy leave the financial service industry open to charges of greenwashing? The “Taxonomy in Practice” panel at last week’s Luxembourg for Finance (LFF) “Sustainable Finance Forum” discussed the challenges and pointed to solutions. 

SFDR and the green investing taxonomy have been broadly well received across Europe, but what if other economic powers adopt contradictory rules? Some signs of action are emerging from global discussions.

Be under no illusion. Discussions around the EU green investing taxonomy are likely to go to the wire. Although April saw publication of a likely draft text, complex political discussions are set to continue. This will have implications for suitability assessments and product governance, which will impact the operation of Mifid companies, thus affecting UCITS Mancos, AIFMs and insurance companies.