Sustainable Finance Timeline: Key Milestones

The ESMA has published the timeline for upcoming sustainable finance regulations, providing a clear roadmap for companies aiming to comply with the new ESG requirements. This timeline outlines key milestones that economic players must anticipate in the coming months and years. These steps are crucial for enhancing transparency and directing investments toward more sustainable activities. Among the major upcoming milestones:

• January 2023: Calculation of taxonomy alignment for companies subject to the NFRD (DPEF in France) and application of the SFDR Regulatory Technical Standards (RTS) on the six taxonomy objectives.
• June 2023: First publication of the SFDR's "Principal Adverse Impacts" (PAI), a crucial step toward transparency on the environmental, social, and governance impacts of financial investments.
• January 2024: The SFDR RTS comes into effect for companies under the NFRD (DPEF), introducing new reporting obligations to align practices with the EU's sustainability objectives.

These milestones are key moments for companies to assess their compliance with the regulations and adjust their ESG strategies accordingly. They represent a significant shift toward more responsible finance, with implications for companies, investors, and the financial market as a whole.