The set of legislative reforms recently adopted by the Council of the EU were published in the Official Journal of the EU. They include regulations concerning the creation of a new category of benchmarks contributing to sustainable finance and transparency obligations for sustainable investments. The two regulations on sustainable finance introduce disclosure obligations on how financial companies integrate environmental, social and governance (ESG) factors in their investment decisions and create new types of benchmarks aimed at giving greater information on an investment portfolio's carbon footprint: the EU climate-transition benchmarks, which aim to lower the carbon footprint of a standard investment portfolio, and the EU Paris-aligned benchmarks, which have the more ambitious goal to select only components that contribute to attaining the 2°C reduction set out in the Paris climate agreement.

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