Dr. Hanne Böckem
Partner, Audit, DPP
KPMG AG Wirtschaftsprüfungsgesellschaft
The Platform on Sustainable Finance ("Platform"), an independent advisory body to the EU Commission, published the results of its work in two reports on 11 October 2022. The reports are for information purposes but do not prejudge any decision or action by the EU Commission on the matters concerned.
The Minimum Safeguards Compliance Report sets out the requirements of Article 18 of the EU Taxonomy Regulation and is intended to provide advice to companies, investors and auditors on how to assess whether the requirements are met. Compliance with the minimum safeguards in the conduct of an economic activity is a necessary condition for a company to be able to classify that economic activity as environmentally sustainable within the meaning of Article 3 of the EU Taxonomy Regulation. The minimum protection requires that companies implement procedures to ensure that the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights and the International Bill of Human Rights are followed.
The second published report provides a detailed overview of the first phase of implementation of the taxonomy by business actors and financial markets. It also includes specific recommendations for targeted adjustments to improve the taxonomy's applicability and coherence with the overall sustainable finance regulatory framework. The report, on the other hand, does not provide guidance to users or legal interpretation of the rules, but is intended to provide guidance to the European Commission and the European Supervisory Authorities on issues related to the implementation of the EU Taxonomy Regulation.
The reports can be downloaded here.