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Political agreement reached on EU Taxonomy

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BNP Paribas Asset Management
 

During COP 25 in Madrid, BNP Paribas Asset Management (‘BNPP AM’) will convene a panel debate around the EU Sustainable Taxonomy on behalf of the European Commission’s Technical Expert Group on Sustainable Finance (‘TEG’). The panel is expected to be attended by EU Vice President Drombrovskis, who is ultimately responsible for the EC’s Sustainable Finance agenda, and will be moderated by Nathan Fabian of the Principles for Responsible Investment.

Panellists, including Helena Viñes Fiestas, BNPP AM’ s Global Head of Stewardship & Policy, will explore the design and future use of the Taxonomy by investors around the world and examine how the taxonomy will satisfy investors’ growing demands to know if their activities are truly consistent with the goals of the Paris Agreement.  The debate has been timed to follow the political agreement on the Taxonomy legislation reached by the European Parliament, the European Commission and the European Council on 5 December.

“We congratulate the EU Commission, Council, European Parliament and Finnish Presidency on reaching a provisional political agreement on the EU sustainable finance taxonomy.  In March this year we committed to tracking, monitoring and reporting on the green share of our assets under management as much as possible while the taxonomy continued to develop.

It is the market-friendly tool based on the best available science and practice that investors have been waiting for.  It will help us identify better investment opportunities, and create green portfolios and better manage their environmental risks.  It will reassure clients that our products are making a positive environmental contribution, and ultimately, will help us raise much needed funding for the transition to a carbon neutral and environmentally sustainable economy”.

Helena Viñes Fiestas
Global Head of Stewardship & Policy at BNPP AM, and Member of the Technical Expert Group

The Taxonomy identifies those economic activities that can be considered environmentally sustainable, and under which circumstances.  It sets performance thresholds for economic activities that are consistent with a net zero, 2050 economy and will form the basis of future financial product claims about contributions to the Paris Agreement and other environmental commitments in Europe.

The first delivery, the Climate Taxonomy, was developed over one and a half years by the TEG with the support of more than 200 finance, industry, science and non-government experts and its methodology can encourage and support the development of similar frameworks around the world.

 

Quentin Smith

BNP Paribas Asset Management

+44 20 7063 7106

quentin.smith@bnpparibas.com

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