While the European Commission technical expert group’s (TEG) proposal for a sustainability taxonomy is a welcome step in the right direction, more work must be done to make it easier to use for investors.
In its response to the Commission’s consultation on the TEG proposal, Insurance Europe said the current framework includes very detailed criteria and is data intensive.
However, the taxonomy needs to be simple enough to be used in the investment process and the proposed criteria should allow for an unambiguous identification of all sustainable activities.
Insurance Europe also warned that if the scope of the taxonomy is too narrow, the classification will have limited value to investors and will not adequately capture the transition of companies towards a greener economy.
© Insurance Europe
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