Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector and amending regulation 2020/852 (taxonomy)
Article 4 on the transparency of adverse sustainability impacts at entity level, states at paragraph 6 that by 30 December 2020, the ESAs shall develop, through the Joint Committee, draft regulatory technical standards in accordance with Articles 10 to 14 of Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010 on the content, methodologies and presentation of information referred to in paragraphs 1 to 5 of this Article in respect of the sustainability indicators in relation to adverse impacts on the climate and other environment‐related adverse impacts.
Article 9 on the transparency of sustainable investments in pre‐contractual disclosures, states at paragraph 3 that where a financial product has a reduction in carbon emissions as its objective, the information to be disclosed pursuant to Article 6(1) and (3) shall include the objective of low carbon emission exposure in view of achieving the long‐term global warming objectives of the Paris Agreement. By way of derogation from paragraph 2 of this Article, where no EU Climate Transition Benchmark or EU Paris‐aligned Benchmark in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council is available, the information referred to in Article 6 shall include a detailed explanation of how the continued effort of attaining the objective of reducing carbon emissions is ensured in view of achieving the long‐term global warming objectives of the Paris Agreement.
Regulation 2020/852 introduces a taxonomy to facilitate sustainable investment and notably mitigation and adaptation efforts.