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Economic and Social Policies, PUBLICATIONS

Sustainable finance and disclosures: Bringing clarity to investors [EU Legislation in Progress]

Written Stefano Spinaci (2nd edition, updated on 15.01.2020),

Grass growing in the shape of planet Earth, inside a transparent piggy bank, symbolising the need to invest in the protection of the environment and to reconnect with nature.

© pogonici / Fotolia

On 24 May 2018, the Commission published three proposals for regulations reflecting the EU’s efforts to connect finance with its own sustainable development agenda. The proposals include measures to: create an EU sustainable finance taxonomy; make disclosures relating to sustainable investments and sustainability risks clearer; and establish low-carbon benchmarks. In particular, the proposal for a regulation on disclosures aims to integrate environmental, social and governance considerations into the decision-making process of investors and asset managers. It also aims to increase the transparency duties of financial intermediaries towards final-investors, with regard to sustainability risks and sustainable investment targets. This should reduce investors’ research costs as regards sustainable investments and enable easier comparison between sustainable financial products in the EU. Following agreement with the Council in trilogue, Parliament voted to adopt the agreed text at first reading on 18 April 2019. Because of the tight timeline for finalisation before the end of the parliamentary term, linguistic corrections to the voted text were needed. Under the corrigendum procedure, the ECON committee and subsequently the plenary endorsed the corrected text in October 2019, allowing the Council to adopt it at first reading. Signed on 27 November, the regulation entered into force on 29 December, and will become applicable as of March 2021.


Proposal for a regulation of the European Parliament and of the Council on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341
Committee responsible: Economic and Monetary Affairs (ECON) COM(2018) 354 of 24.5.2018
Rapporteur: Paul Tang (S&D, the Netherlands) 2018/0179(COD)
Shadow rapporteurs: Sirpa Pietikäinen (EPP, Finland)
Syed Kamall (ECR, United Kingdom)
Lieve Wierinck (ALDE, Belgium)
Matt Carthy (GUE/NGL, Ireland)
Molly Scott Cato (Greens/EFA, United Kingdom)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Procedure completed. Regulation (EU) 2019/2088
OJ L 317, 9.12.2019, pp. 1-16
EU Legislation in progress: Adoption


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