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EU Level Legislation on ESG and Sustainable Financing

Entered into force in late 2019, the amended Benchmark Regulation established the EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-associated disclosures for benchmarks. These amendments aim to ensure that the labels ‘EU Climate Transition Benchmark’ and ‘EU Paris-aligned Benchmark’ are well grounded and easy for investors across the Union to recognize. Also, it aims that only benchmark administrators that comply with the requirements laid down therein should be eligible to use those labels when marketing EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks in the European Union.

Benchmark administrators, except of administrators of interest rate and foreign exchange benchmarks, are obliged to disclose in their benchmark statement whether or not their benchmarks or families of benchmarks pursue ESG objectives and whether or not the benchmark administrator offers such benchmarks. Read more…