The EU Taxonomy Regulation - Practical Insights for Fund Management Companies

The EU Taxonomy Regulation begins to apply from 1 January 2022, introducing a common classification system for sustainable economic activities. It acts as golden thread throughout EU sustainable finance legislation, mandating disclosure from financial market participants (which includes fund management companies), issuers and undertakings regarding the extent to which their business activities are aligned to the EU Taxonomy.

Our new EU Taxonomy Regulation paper, in Q&A style format, is intended to assist fund management companies in understanding and complying with the EU Taxonomy. Sections cover:

• Background and context

• Practical application

• Interaction with other EU sustainable finance legislation

• The data challenge

• Future developments