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EU Taxonomy Regulation (EU) 2020/852 - Article 6: Disclosure Obligations for Financial Products Investing in Taxonomy-Aligned Activities

Article 6 of the EU Taxonomy Regulation (2020/852) imposes disclosure obligations on financial market participants that market financial products…

What EU Taxonomy Regulation (EU) 2020/852 - Article 6: Disclosure Obligations for Financial Products Investing in Taxonomy-Aligned Activities requires

Article 6 of the EU Taxonomy Regulation (2020/852) imposes disclosure obligations on financial market participants that market financial products (investment funds, pension products, insurance-based investment products) in the EU. Products NOT marketed as environmentally sustainable must include a disclaimer stating they do not take into account EU Taxonomy criteria for environmentally sustainable economic activities. Products that DO take Taxonomy criteria into account must disclose: the Taxonomy-alignment objectives pursued, how and to what extent those objectives are taken into account, and the proportion of investments in economic activities classified as environmentally sustainable per the Taxonomy. These disclosures are required in: (a) pre-contractual documents (prospectus, KID, KIID); (b) periodic reports; and (c) on the financial market participant's website. Article 6 disclosures must quantify the proportion of Taxonomy-aligned investments using the Key Performance Indicators (revenue, capex, opex) of underlying investee companies pursuant to Article 8 disclosures.

Pillar: Sustainability & ESG · Authority: European Parliament and the Council of the European Union · Version: 2.0.0 · Last updated:

Primary source: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32020R0852

SHA-256 integrity: 28d0c1acc4284749fa70b0c8c3583bfb297ec9788988fc8c171cad6e083327de

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