With its Sustainable Finance Action Plan and the EU Commission’s new Sustainable Finance Strategy, the EU has created regulatory standards for a sustainable European financial system that are the only ones of their kind in the world. In addition to new disclosure requirements under the Sustainable Finance Disclosure Regulation (SFDR), a classification system – a “green” taxonomy – for various financial market participants (such as asset managers, fund managers, and investment advisers) and their products with respect to “environmentally sustainable” investments has been developed under the Taxonomy Regulation. Not only is this pertinent for (nearly) all parties in the financial market, it also primarily affects goods and services.
The new legal requirements have been entering into force incrementally since the start of 2021, particularly making adjustments necessary for the affected financial market participants and their products with respect to business and risk strategy, remuneration policy, risk management systems, reporting, and data management. Parallel to this – by no later than autumn 2022 – it will be obligatory to ask investors whether and to what extent sustainability is prioritised in their investment objectives. In short: Sustainable investment is growing in importance.
Our 360-degree approach delivers comprehensive solutions in sustainable finance for products and companies alike by leveraging our many years of experience, deep sector knowledge, and consulting via interdisciplinary teams.
ESG pays for itself – particularly in the field of real estate. In future, stricter sustainability criteria will apply to project developers, asset managers and those who manage funds and portfolios. If you take action now and align your properties and contracts accordingly, you will generate better profits. We’ll be delighted to help.
Dr Christoph Strelczyk, lawyer
The key measures under the EU Sustainable Finance Action Plan and the EU Commission’s current Sustainable Finance Strategy include in particular the Sustainable Finance Disclosure Regulation (SFDR), the Taxonomy Regulation, and the integration of sustainability preferences into the MiFID II regime.
The SFDR regulates sustainability-related disclosure requirements for financial products and applies to nearly all financial market participants. Central to this regulatory framework is the distinction drawn between three pillars
The regulation has largely been applicable since 10 March 2021. The exact requirements with regard to the respective disclosure obligations, the so-called Regulatory Technical Standards (RTS), are currently being developed and will take effect as delegated acts at various points in time depending on the respective disclosure obligation.
The graphic below shows the various dates at which the SFDR comes into effect with reference to the Taxonomy Regulation, the MiFID II regulations as well as the planned Corporate Sustainability Reporting Directive (CSRD).
In der nachfolgenden Graphik werden die unterschiedlichen Anwendbarkeitszeitpunkte der SFDR mit den Bezügen zur Taxonomie-VO sowie der MiFID II-Regelungen veranschaulicht.
Companies have been proclaiming their commitment to sustainability for some time now – although so far the term has been open to interpretation. Now, for the first time, there are clear and binding rules in the EU. In future, “sustainability” will have to be classified according to these regulatory requirements in each individual case.
Lisa Watermann, lawyer
In the European Union, the question is no longer whether, but how to regulate the field of sustainable finance. Regulation poses immense challenges to the real economy and the financial industry while simultaneously opening the door to a whole new world of opportunities – because sustainable investments means sustainable profits. With investor interest in sustainable options likely to increase, financial market participants who offer a timely and holistic sustainability strategy can potentially benefit from this growing investor base.
Our team here at GSK Stockmann will support and advise you on strategic, efficient and sustainable solutions for all relevant aspects of sustainable finance. Specific areas we can help you with include:
The introduction of the EU’s regulatory framework for sustainable finance has catapulted sustainability to a new level. The focus is no longer solely on political goals, but also on legal requirements. Not all sustainability is created equal any more.
Dr Oliver Glück, lawyer
Our solutions in the field of sustainable finance build on GSK Stockmann’s 360° approach. Our teams in Germany and Luxembourg offer investors, companies and financial market participants comprehensive legal advice on all aspects of sustainability. By integrating sustainability criteria in a strategic manner, you can minimise financial risks resulting from climate change, depleted resources, environmental destruction and social factors.
ESG has now arrived in the midst of economic life and will be one of the key drivers of legal requirements in the financial sector, but also in the real economy and corporate policy in the coming years. ESG is both a legal frontier and a driver of innovation in the world of tomorrow.
Philippe Lorenz, lawyer
The market for sustainable investments is booming. ESG – which is short for environmental, social and (corporate) governance – refers to basic criteria for sustainable investments that take environmental protection, social concerns and good corporate governance into account. Since 2017, ESG criteria have been included in the annual sustainability reports of publicly listed companies, in certifications and ESG scores.
Rating agencies and independent experts can verify the details for banks, funds and investors. Good, sound advice is absolutely indispensable in order to comply with the numerous regulatory requirements.
In der nachfolgenden Graphik werden die unterschiedlichen Anwendbarkeitszeitpunkte der SFDR mit den Bezügen zur Taxonomie-VO sowie der MiFID II-Regelungen veranschaulicht.
Sustainability is an essential component of our daily actions and future planning. The views and commitment of our employees are just as important to us as the input from our clients and external stakeholders.
Find out in our sustainability report for financial year 2021 how our firm lives out the principles of sustainability in all its many facets.
Entrepreneurial initiative and the spirit of partnership are written into our DNA of our law firm. Coupled with our professional expertise, these form the basis for the sustainable advice we offer and are the key to your success. We take partnership literally: as your trustworthy partner, we will look after you and your company’s interests. We understand your economic goals – and we work proactively and creatively to promote them to the fullest extent possible. In short, we take responsibility and make it our business to look after your business as if it were our own.
Arrange an appointment now – our team looks forward to hearing from you.
For reasons of better readability, we use the gender-neutral generic masculine. However, the information expressly refers to all genders.
