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The Platform on Sustainable Finance, an advisory body to the European Commission, published its report on “a compendium of market practices”. The report focuses on seven stakeholder groups (corporates, credit institutions, investors, insurers, auditors and consultants, small- and medium-sized enterprises, and the public sector), showing that the EU taxonomy and the other sustainable finance tools (e.g. the European Green Bond Standard) is being used for setting transition strategies, structuring financial transactions and reporting on sustainability efforts.
Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said:
The EU taxonomy is working – and so is the wider EU sustainable finance framework. Companies are using the taxonomy to set targets and back up claims on sustainability, which is helping them access finance. Auditors can see the shift in companies’ mindsets – moving from general goals to specific targets. Investors and lenders are able to compare companies’ transition efforts. All of this is helping to shift financial markets towards sustainability. My thanks to the Platform on Sustainable Finance for their impressive analysis. The Commission will continue working with the Platform so that together, we maximise the impact of the taxonomy and help companies on their transition to net zero.
The report is accompanied by an annex, which includes concrete case studies for each stakeholder group. The case studies highlight the first evidence that the EU sustainable finance framework is working on the ground and shows how market actors are using it including beyond regulatory compliance. It also identifies some data and implementation challenges regarding the EU taxonomy and wider framework, which need to be further improved to fully support financial and non-financial actors in transitioning their business models to align with the EU’s sustainability objectives.
The compendium of market practices will set the direction for future priorities on the implementation of the EU sustainable finance framework.
The report provides peer-to-peer recommendations to further scale up the impact and enhance the value and benefits of the EU taxonomy and the broader EU sustainable finance framework. It also recommends concrete actions for the Platform as advisor to the Commission to continue supporting stakeholders in their implementation efforts. Building on the report, the Commission will work closely with the Platform to monitor the uptake of the different sustainable finance tools and provide guidance to make the application of the framework as easy and effective as possible.