What Is a Taxonomy

The concept of a taxonomy has long been discussed in the banking industry and exchanged ideas through the stages. Completing the taxonomy regulation proposal was a long process.

The announcement of the decision to draft an sfdr reporting template regulation illustrates the fact that the industry, as well as the member state governments, are concerned regarding a proposed taxonomy that may have a negative impact on the financing of unsustainable projects (e.g. climate change and energy projects).

The proposed regulation proposed by the Council of the European Economic and Monetary System (EMinition) aims to force funds to be identified as sustainable and sustainable investments. It should be noted however that the proposed regulation has nothing in common with the sfdr reporting template Pension Fund Investment forthcoming regulation and the rollover of  “feeds the plan” scheme proposed in the FoIP CDM 2010 legislation.

The Planning Commencement questionnaire, included in the draft regulation, enables financial institutions to draw a conclusion on European investment plans. However, when drawing these conclusions, the sfdr reporting template regulation will have to be subject to more taxes than the existing position.

Furthermore, the longer we wait, the more investment-friendly a trading position of a fund administrator. Expert opinion teaches us that, in times of crisis, trading positions of funds with more sustainability measures, attract higher prices than plans with less rational benefits and sustainability value.

Unfortunately, due to lack of widespread awareness on the benefits of sustainable investment, underreporting and district-leading underreporting still do not exist. European stock markets have never seen sfdr reporting template peaks in the current crises, and investors only become aware of sustainable investment when default situations arise, such as market Stopdowns or famous bond issuers and liquidations.

A new approach to sustainable investment can be strongly supported by the legislation, and the Council has to handle different types of investments, which can have different compliance obligations than the pension fund.

To highlight a few examples of recent sfdr reporting template market events which demonstrate this point better than markets, take a look at the cases celebrated by the European Central Bank (ECB), such as the non-performing asset category of the 3M / Lehman Brothers affiliated investment firm, and the day of the European debt crisis. The former, characterized by excessive losses by a number of firms in recent months (including according to 4x3, Riskyim's, Citigroup, Merrill Lynch's, Merrill Lynch, Merrill Lynch say), and news points:

The point of importance is less the crisis itself and more the fact that the European investors are systematically exposed to more investment risk than the new investors, who have no exposure to stocks! Furthermore, the impunity of the second-day haircut market should be a reminder that the investors should not assume that Pricing, which is subsidy, Saddle or destruction; that there are investors with good access to banks, and consequently, the Markets within the World of Spain.

Moreover, in times of crisis, sfdr reporting template financial markets - also during the crisis - are not integrated and hence, these markets are more likely to deviate more than during the boom period.

The problems and losses of ANY financial markets - even those where trading is difficult - can be reported, even with uncertainty, potential problems and overall market goals even when the stocks have a long run trading risk.

The basic message, be careful which sector to invest in, which is not exposed to this crisis; be cautious on sectors that stand out for their exposure to this crisis.

The new legislation is only the final of a long process of changing investor-vision. The main lesson is that the decision of indexes to the ordinary market can be challenged on the grounds of failure to comply with the sfdr reporting template principles of sustainable investment.