EU Omnibus: The EU Taxonomy – Why?

In 2018, the European Commission set forth a classification system to determine whether businesses are environmentally sustainable. The EU Taxonomy followed the legalistic style of the French Civil Code and flummoxed non-European sponsors tasked with providing detailed evaluations of European environmental law and international human rights principles for portfolio investments.

In Part III of our series covering the Omnibus proposals, we provide an update on the status of the EU Taxonomy and its likely centrality within the future EU sustainable finance agenda, as well as an articulation of why sponsors of any origin should begin sharpening their pencils to push investees to align with its criteria.