Sustainable Finance Action Plan (SFAP)
The Sustainable Finance Action Plan is the key driver for the EU's transition to zero net CO2 emissions in 2050.
The Sustainable Finance Action Plan (SFAP) is a facilitator of the green transition under the umbrella of the EU Green Deal. The idea behind it is that the financial sector is the strongest and most powerful instrument for change and therefore has been selected as one of the key drivers for the transition to a net-zero society.
The SFAP consists of a package of financial and reporting initiatives:
- The EU Taxonomy Regulation
- The Sustainable Financial Disclosure Regulation (SFDR)
- The Corporate Sustainable Reporting Directive (CSRD)
- The EU Climate Transition Benchmark Regulation and the EU Paris-Alignment Benchmark Regulation
- Markets in Financial Instruments Directive II
- EU Green Bonds Standard
Why is it important?
SFAP implements sustainability factors into business conduct, financial advice, assessment and due diligence of potential investments. This includes a set of reporting measures that companies are required to comply with.
Is it relevant for me?
As a financial company or as a manager of a real estate portfolio, these rules have a significant impact on your assets, their value and your reporting structure.
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The Corporate Sustainability Reporting Directive expands the obligations and scope of sustainability reporting for EU companies.
The aim of this Directive is to promote sustainable and responsible corporate action and to anchor human rights and environmental aspects in the business activities and corporate governance of companies.