Sustainable finance : implementation timeline for SFDR, TR, CSRD, BMR, EuGBR

1. Sustainable Finance Disclosure Regulation (SFDR)

• March 10, 2021: SFDR Level 1 disclosures started, mandating financial market participants to make basic ESG disclosures.
• January 1, 2022: Principal Adverse Impact (PAI) statement disclosures became mandatory.
• January 1, 2023: SFDR Level 2 requirements (detailed Regulatory Technical Standards or RTS) came into effect, requiring more specific disclosures for Articles 8 and 9 products.

2. EU Taxonomy Regulation (TR)

• July 2020: EU Taxonomy Regulation entered into force.
• January 1, 2022: Reporting started for the first two environmental objectives: Climate Change Mitigation and Climate Change Adaptation.
• January 1, 2024: Reporting begins for the remaining four objectives: Sustainable Use and Protection of Water and Marine Resources, Transition to a Circular Economy, Pollution Prevention and Control, and Protection and Restoration of Biodiversity and Ecosystems.

3. Corporate Sustainability Reporting Directive (CSRD)

• November 2022: CSRD was adopted by the European Council.
• January 1, 2024: CSRD reporting starts for large public-interest entities already subject to the NFRD.
• January 1, 2025: Reporting starts for large companies not currently covered by the NFRD.
• January 1, 2026: Reporting starts for listed SMEs, with some exemptions available until 2028.

4. Benchmark Regulation (BMR) – ESG Benchmarks

• April 30, 2020: EU introduced minimum standards for two new types of climate benchmarks: the EU Climate Transition Benchmark (CTB) and the EU Paris-Aligned Benchmark (PAB).
• December 31, 2021: All administrators of significant benchmarks must disclose how ESG factors are reflected in their methodology.
• January 2023: Full integration of ESG disclosures for benchmarks as part of the BMR.

5. EU Green Bond Standard (EuGBR)

• Expected 2024-2025: Finalization and formal adoption of the EU Green Bond Regulation. Following adoption, it will become voluntary but aims to standardize green bond issuance in alignment with the EU Taxonomy.
• Post-2025: Implementation period for compliance with the EU Green Bond Standard by green bond issuers.

source :

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