Main recommendations from the report on advancing sustainable finance
Published 12 May 2025
Category: Impact and ESG
In our previous update, we touched upon the report on advancing sustainable finance (“Report”) published by the Platform on Sustainable Finance. Overall, the work performed by the Platform on Sustainable Finance has focused on developing technical criteria for new economic activities and reviewing activities included in the Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 (“Climate Delegated Act”).
The Report touches on a range of significant points. Below, some of the main recommendations from the Report are highlighted. In general, they must address the stakeholder requests and support the green transition:
- Updating existing technical screening criteria: Technical screening criteria for existing activities should be reviewed to reflect the most recent technologies and science developments as well as to ensure usability and alignment towards climate and environmental goals. Further, such update should also include, among others, improvement of comparability and clarity of the technical screening criteria, definitions of climate change mitigation and adaption and thresholds across different sectors.
- Expansion with new economic activities: The Platform on Sustainable Finance recommends that new economic activities are included in the EU Taxonomy. This includes updating and developing technical screening criteria for economic activities contributing substantially to environmental objectives beyond climate change mitigation and adaption. New activities and sectors shall include, among others, mining of critical raw materials, digital environmental services and nature-based solutions. The purpose is to meet the ambitions raised in the European Green Deal and expand the EU Taxonomy coverage.
- Simplification of reporting requirements under the EU Taxonomy: The Report includes recommends on making reporting and disclosures simpler, less burdensome and more usable. This shall be done by having better guidance tools, data-based thresholds as well as more consistent and clear technical screening criteria.
- Strengthening resilience and adaption: The Platform on Sustainable Finance supports including more economic activities contributing to climate resilience within the EU Taxonomy. This entails developing currently outstanding Do No Significant Harm (DNSH) criteria for adapted activities to enable more companies to classify investments as Taxonomy-aligned.
- Ensuring international applicability and relevance: The Report stresses the need for global relevance by ensuring that criteria are designed in a way that can be interpreted outside of EU and allow international companies to align with the EU Taxonomy if relevant.
Next steps: The Report is the result of a mandate given to the Platform on Sustainable Finance issued by the EU Commission. Although the Report does not obligate the EU Commission to take specific actions, the Report will now be reviewed by the EU Commission and is likely to have some influence on their future work.
Tags: Sustainability
Also tagged ‘Sustainability’
Thematic review of engagement information
The Danish Financial Supervisory Authority (the “DFSA”) has conducted a thematic review of six pension companies and investment managers and their engagement information (active ownership).
SFDRSustainabilityAn update on the stop-the-clock proposal and the ESRS simplification mandate
On 29 April 2025, a majority of the Danish Parliament agreed on the “stop-the-clock” directive which will go to a formal vote in the fall to adopt the proposal into Danish legislation.
CSDDDCSRDSustainabilityThe Omnibus Packages – EU postpones reporting obligations and transposition deadlines in the CSRD and CSDDD
In February, the EU unveiled the proposal for the Omnibus Simplification Package (the “Omnibus”), which includes a directive commonly referred to as the “Stop-the-Clock” directive, as it postpones certain reporting obligations and transposition deadlines, which has now been adopted.
CSDDDCSRDSustainabilityReport on advancing sustainable finance
The EU Commission advisory body, Platform on Sustainable Finance, has published a report on advancing sustainable finance focusing on technical criteria for new economic activities and first review of the Commission Delegated Regulation (EU) 2021/2139.
SustainabilityThe Danish FSA: Managers need to ensure truly sustainable investments
The Danish Financial Supervisory Authority (the “Danish FSA”) has initiated an inspection of three managers in September 2024.
SFDRSustainabilityThe Danish FSAThe Omnibus package and its impact on EU’s ESG regulation
Yesterday, the European Commission revealed the proposal for the Omnibus Simplification Package.
CSDDDCSRDDisclosure RequirementsSustainabilityEU Competitiveness Compass – ESG takeaways
29 January 2025, the EU Commission published its Competitiveness Compass which sets out a compass that will guide the work in the coming five years and lists priority actions to reignite economic dynamics in Europe, according to the communication.
CSDDDCSRDDisclosure RequirementsSFDRSustainabilityThe Omnibus Simplification Package and how it may impact EU’s ESG regulation
In the end of 2024, the European Commission President Ursula von der Leyen indicated that existing and future EU ESG reporting obligations may be consolidated into an “omnibus” regulation with the purpose of reducing reporting requirements.
CSRDDisclosure RequirementsSustainabilityESMA consults on proposals to digitalise sustainability and financial disclosures
The European Securities and Markets Authority has published a consultation paper seeking stakeholders’ view on how the European Single Electronic Format can be applied to sustainability reporting for the purpose of easing the burden associated with financial reporting.
ESMARegulatory Technical StandardsSustainabilityNew Q&As on application of Guidelines on funds’ names
ESMA has published Q&As for Guidelines on funds’ names using ESG or sustainability-related terms.
ESMASustainabilityReport on investing for transition benchmarks
The Platform on Sustainable Finance has published a report on Investing for Transition Benchmarks proposing two voluntary benchmark labels.
SustainabilityProposal for categorisation of products under the SFDR
The EU Platform on Sustainable Finance has published a briefing note for the EU Commission outlining how a categorisation system for sustainable finance products could be set up and calibrated.
SFDRSustainabilityUpdated Voluntary Sustainability Reporting Standard for non-listed SMEs
European Financial Reporting Advisory Group (EFRAG) has published an updated version of the Voluntary Sustainability Reporting Standard for non-listed SMEs (the “VSME”).
CSRDSustainabilityESMA announces European Common Enforcement Priorities for corporate reporting
The European Securities and Markets Authority (“ESMA”) has issued its annual European Common Enforcement Priorities Statement for corporate reporting.
CSRDDisclosure RequirementsSustainabilityNon-financial reporting under the EU taxonomy – Theme inspection by the Danish FSA
The Danish FSA has completed a theme inspection regarding financial market participants and companies reporting under the EU taxonomy.
Disclosure RequirementsSustainabilityNew ESG template for SMEs
In September 2024, the Danish Business Authority published a new ESG template targeted at SMEs.
CSRDSustainabilityGuidelines on consolidated sustainability reporting expanded
The Danish Business Authority has expanded their Guidelines on consolidated sustainability reporting with an updated version 2.
CSRDSustainabilityThe ESG landscape and its impact on investments
The financial data and software company, PitchBook, has published a report on their Sustainable Investment Survey 2024.
SustainabilityNational versions of guidelines on funds’ names now published
On 21 August 2024, the European Securities and Markets Authority (“ESMA”) published their guidelines on funds’ names (the “Guidelines”) in versions translated into all the official EU-languages.
ESMASustainabilityRegistration of “sustainability auditors” is now possible
On 1 June 2024, the new rules on requirements to companies’ sustainability reporting (entailed by CSRD) entered into force.
CSRDSustainabilityMeasures to support corporate sustainability reporting
In July, the European Securities and Markets Authority (“ESMA”) published measures to support corporate sustainability reporting.
CSRDESMAESRSSustainabilityESMA opinion on sustainable investments: Facilitating the investor journey
On 24 July 2024, the European Securities and Markets Authority (“ESMA”) published an opinion: “Sustainable investments: Facilitating the investor journey – a holistic vision for the long term” setting out ESMA’s long-term vision on the functioning of the Sustainable Finance Framework.
ESMASustainabilityThematic review of pension funds subject to SFDR article 8
The Danish Financial Supervisory Authority initiated an inspection of three pension funds’ disclosing pursuant to SFDR article 8 in November 2023.
ComplianceDisclosure RequirementsSustainabilityFinal reports from ESMA, EBA and EIOPA on greenwashing in the financial sector
The European Supervisory Authorities (EBA, EIOPA and ESMA) has published their final reports on greenwashing in the financial sector.
SustainabilityAdoption of the Net Zero Industry Act
The European Council has adopted the Net Zero Industry Act: a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem.
SustainabilityFinal Report from ESMA with guidelines on funds’ names
The European Securities and Markets Authority has published a final report containing guidelines on funds’ names using ESG or sustainability-related terms.
ESMASustainabilitySummary report of the consultations on the implementation of SFDR
The European Commission initiated in September 2023 public and targeted consultations on the implementation of the SFDR running until 22 December 2023. A summary of the contributions on the consultations have now been published in a summary report.
Disclosure RequirementsRegulatory Technical StandardsSustainabilityThe Danish FSA: Investment Managers must be better at disclosing sustainability related information
The Danish Financial Supervisory Authority has in a thematic review assessed several sustainability related issues at two investment managers.
Disclosure RequirementsSustainabilityInvest Europe GP ESG Due Diligence Guide
Invest Europe has published a revised GP ESG Due Diligence Guide. It provides guidance on how ESG factors can be incorporated into general partner’s management and decision-making processes.
SustainabilityThe Danish implementation of CSRD has been adopted
Today, 2 May 2024, the Danish Parliament adopted the final legislative proposal to implement the Corporate Sustainability Reporting Directive (“CSRD”) into Danish legislation.
CSRDSustainabilityOther updates
Thematic review of engagement information
The Danish Financial Supervisory Authority (the “DFSA”) has conducted a thematic review of six pension companies and investment managers and their engagement information (active ownership).
SFDRSustainabilityAn update on the stop-the-clock proposal and the ESRS simplification mandate
On 29 April 2025, a majority of the Danish Parliament agreed on the “stop-the-clock” directive which will go to a formal vote in the fall to adopt the proposal into Danish legislation.
CSDDDCSRDSustainabilityAIFMs: Marketing under increased regulatory focus
The Danish Financial Supervisory Authority (FSA) has published a thematic report on how managers of alternative investment funds and investment management companies market their investment funds.
KID / PRIIPSMarketingThe Danish FSAThe European Commission has launched a targeted consultation on obstacles to capital markets integration across the EU
The European Commission has launched a targeted consultation to gather feedback on obstacles to capital markets integration across the EU.
ComplianceCross-BorderThe Danish Parliament has adopted regulation to implement the NIS2 Directive and the CER Directive
On April 29, 2025, on the day where major parts of France, Spain, and Portugal suffered severe utility breakdowns, the Danish Parliament adopted the bills for implementing the NIS2 Directive and the CER Directive.
CERCritical SectorsCybersecurityNIS2The Omnibus Packages – EU postpones reporting obligations and transposition deadlines in the CSRD and CSDDD
In February, the EU unveiled the proposal for the Omnibus Simplification Package (the “Omnibus”), which includes a directive commonly referred to as the “Stop-the-Clock” directive, as it postpones certain reporting obligations and transposition deadlines, which has now been adopted.
CSDDDCSRDSustainability