Various definitions and terminology are used in relation to the term sustainable finance: sustainable finance, green finance, environmental finance, carbon finance, climate finance. (eng. climate finance). Certain concepts are intertwined and sometimes cause confusion when using them. Sustainable financing refers to corporate social responsibility and ESG as a way of measuring it.
In order to contribute to the achievement of the goals of the Green Plan, the European financial system must become more sustainable. Therefore, the EU has taken important measures to build a sustainable financial ecosystem. The EU Taxonomy Regulation, the Regulation on Sustainability-Related Disclosures in the Financial Services Sector (SFDR Regulation) and the Benchmark Regulation are the basis for increasing transparency and enabling investors to identify opportunities for sustainable investments. Together, these three regulations form a package of measures resulting from the Action Plan for Sustainable Financing. With these measures, the EU is taking important steps to solve the problem of manipulative green marketing on the financial market (greenwashing). In order to access sustainable sources of financing, your business must comply with the prescribed criteria. Therefore, contact us to advise you on how to comply.