2023-09-19 16:25:08
Published on September 19, 2023 at 6:25 p.m.
Moving from transparency to categorization. The European Union might create four categories for sustainable funds, according to a project put out for consultation until mid-December. It would replace the current reporting system, which fund managers use to decide whether their financial instrument is light green (said to fall under Article 8 of EU regulations) or dark green (Article 9). Another avenue explored by the European authorities consists of strengthening this system by introducing minimum thresholds to be respected.
Europe might therefore establish a more precise classification system for investment funds, according to four categories. The first would bring together what is usually referred to as “impact finance”: investments providing measurable solutions to sustainability issues affecting the environment or society. The second category would bring together funds that meet recognized sustainability standards. The third would cover products that exclude activities with a negative impact on the environment or society. The fourth, finally, would welcome instruments aimed at financing the ecological transition, by investing in activities that are aligned with the European taxonomy.
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