The European Commission (EC) published new guidelines (GL) on corporate climate-related information reporting, providing ca. 6,000 EU-listed companies with practical recommendations on how to better report the impact that their activities are having on the climate as well as the impact of climate change on their business, as part of its Sustainable Finance Action Plan and under the Non-Financial Reporting Directive. The GL integrate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board.
The EC also welcomed the publication of three reports by the Technical Expert Group on sustainable finance (TEG). The first is a classification system – or taxonomy – for environmentally-sustainable economic activities. The second report on an EU Green Bond Standard recommends clear and comparable criteria for issuing green bonds. The third report on EU climate benchmarks and benchmarks' environmental, social and governance (ESG) disclosures sets out the methodology and minimum technical requirements for indices that will support investors who wish to adopt a climate-conscious investment strategy and address the risk of greenwashing. The report also sets out disclosure requirements by benchmark providers in relation to ESG factors and their alignment with the Paris agreement.