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amendment list, 10 June 2026

Amending Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) and repealing Commission Delegated Regulation (EU) 2022/1288

Document ECON-AM-789857 · (COM(2025)0841 – 2025/0361(COD))

Committee on Economic and Monetary Affairs

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Amendment 52

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 2

Text proposed by the CommissionAmendment
(2) The Communication on the European Green Deal6 recalled the importance of ensuring the mobilisation of private finance towards the objective of transforming “the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use”. The steps taken pursuant to the Green Deal have consistently affirmed the important role of private finance in helping to achieve climate neutrality by 2050 in accordance with Regulation (EU) 2021/1119 of the European Parliament and of the Council7 , specific sectoral sustainability targets in that context8 , and the objectives of the REPowerEU plan9 to accelerate the development of secure and sustainable energy in the Union and reduce dependency on imported fossil fuels. Commission analyses have consistently highlighted the magnitude of investments needed to achieve the EU’s climate objectives: over the 2030 – 2050 period, approximately EUR 650 billion (in 2023 EUR) will have to be allocated yearly for the transition of the energy system alone across a variety of scenarios. In that context, unlocking and facilitating sustainability-oriented private funds is critical for the Union to properly contribute financially to the New Collective Quantified Goal set at COP 29 and the additional climate finance goal to mobilise USD 1,3 trillion a year from 2035, to boost its resilience in the face of climate change10 and to support the plan for EU competitiveness and decarbonisation (The Clean Industrial Deal)11 . It is also aligned with efforts to boost the defence industry of the Union12 by ensuring that the sustainable finance framework does not prevent capital from being directed towards defence-related activities, and help contribute to delivering a more integrated single market for savings and investments to support economic growth, innovation and competitiveness in the Union13 .(2) The Communication on the European Green Deal6 recalled the importance of ensuring the mobilisation of private finance towards the objective of transforming “the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use”. The steps taken pursuant to the Green Deal have consistently affirmed the important role of private finance in helping to achieve climate neutrality by 2050 in accordance with Regulation (EU) 2021/1119 of the European Parliament and of the Council7 , specific sectoral sustainability targets in that context8 , and the objectives of the REPowerEU plan9 to accelerate the development of secure and sustainable energy in the Union and reduce dependency on imported fossil fuels. The risks posed by such dependencies to both the Union’s security and its economic competitiveness have been illustrated once more by the sharp rise in energy prices in the wake of the Iran War. Commission analyses have consistently highlighted the magnitude of investments needed to achieve the EU’s climate objectives: over the 2030 – 2050 period, approximately EUR 650 billion (in 2023 EUR) will have to be allocated yearly for the transition of the energy system alone across a variety of scenarios. In that context, unlocking and facilitating sustainability-oriented private funds is critical for the Union to properly contribute financially to the New Collective Quantified Goal set at COP 29 and the additional climate finance goal to mobilise USD 1,3 trillion a year from 2035, to boost its resilience in the face of climate change10 and to support the plan for EU competitiveness and decarbonisation (The Clean Industrial Deal)11 . Mobilising finance towards sustainable investment can also aid against the highly concerning affordability crisis by helping to keep down energy prices and to promote strategic autonomy. It is also aligned with efforts to boost the defence industry of the Union12 by ensuring that the sustainable finance framework does not prevent capital from being directed towards defence-related activities, and help contribute to delivering a more integrated single market for savings and investments to support economic growth, innovation and competitiveness in the Union13 .
6 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions of 11 December 2019, The European Green Deal (COM(2019) 640 final).6 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions of 11 December 2019, The European Green Deal (COM(2019) 640 final).
7 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’), OJ L 243, 9.7.2021, p. 1, ELI: http://data.europa.eu/eli/reg/2021/1119/oj).7 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’), OJ L 243, 9.7.2021, p. 1, ELI: http://data.europa.eu/eli/reg/2021/1119/oj).
8 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 14 July 2021, 'Fit for 55': delivering the EU's 2030 Climate Target on the way to climate neutrality (COM/2021/550 final).8 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 14 July 2021, 'Fit for 55': delivering the EU's 2030 Climate Target on the way to climate neutrality (COM/2021/550 final).
9 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions of 18 May 2022, REPowerEU Plan, (COM/2022/230 final).9 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions of 18 May 2022, REPowerEU Plan, (COM/2022/230 final).
10 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 12 March 2024, Managing climate risks - protecting people and prosperity (COM(2024) 91 final).10 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 12 March 2024, Managing climate risks - protecting people and prosperity (COM(2024) 91 final).
11 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, The Clean Industrial Deal: A Joint Roadmap for Competitiveness and Decarbonisation (COM(2025) 85 final)11 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, The Clean Industrial Deal: A Joint Roadmap for Competitiveness and Decarbonisation (COM(2025) 85 final)
12 Joint Communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 5 March 2024, A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry, JOIN(2024) 10 final.12 Joint Communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 5 March 2024, A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry, JOIN(2024) 10 final.
13 Communication from the Commission to the European Parliament, the European Council, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions, Savings and Investments Union A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU (COM(2025) 124 final) and13 Communication from the Commission to the European Parliament, the European Council, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions, Savings and Investments Union A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU (COM(2025) 124 final) and

Or. en

Amendment 53

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 2 a (new)

Text proposed by the CommissionAmendment
(2a) These efforts have turned the Union into a sustainable finance frontrunner. Europe now accounts for the significant majority of sustainable fund assets, at approximately 85%. European financial market participants have upheld stronger stewardship standards despite the retreat from stewardship on social and environmental issues, as occurred in some other jurisdictions and particularly in the US. A strong sustainable finance regulatory framework is in that light a strategic autonomy imperative, as it supports and harmonizes practices across the Capital Markets Union and promotes long-term value creation consistent with its economic goals and social model. These efforts have turned the Union into a sustainable finance frontrunner. Europe now accounts for the significant majority of sustainable fund assets, at approximately 85%. European financial market participants have upheld stronger stewardship standards despite the retreat from stewardship on social and environmental issues as occurred in some other jurisdictions, particularly in the US. A strong sustainable finance regulatory framework is in that light a strategic autonomy imperative, as it supports and harmonises practices across the Capital Markets Union and promotes long-term value creation consistent with its economic goals and social model.

Or. en

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Amendment 54

Jaroslava Pokorná Jermanová, Jaroslav Knot, Pierre Pimpie, Tomáš Kubín, Enikő Győri

Proposal for a regulation

Recital 2 a (new)

Text proposed by the CommissionAmendment
(2a) Sustainability-related financial disclosure rules should support the transition of the real economy while preserving proportionality, technology neutrality and the competitiveness of Union industry, particularly in the energy sector, agricultural production, and heavy manufacturing. Such rules should not lead to disproportionate exclusion effects for companies carrying out lawful economic activities under Union law, particularly those companies engaged in credible transition efforts, which provide millions of jobs across Member States.

Or. en

Amendment 55

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 5

Text proposed by the CommissionAmendment
(5) Regulation (EU) 2019/2088 is part of the wider sustainable finance framework, elements of which are undergoing targeted amendments to simplify, streamline and reduce the burden of sustainability-related disclosures and requirements on Union undertakings. Those amendments should ensure a more cost-effective delivery of the overall ambition of the European Green Deal while not undermining its agreed policy objectives15 . As part of that wider sustainable finance framework, Regulation (EU) 2019/2088 should also be reviewed commensurately. That is why its revision has been included among the simplification initiatives of the Commission in the Mission Letter to the Commissioner for Financial Services and the Savings and Investments Union16 and in the 2025 Commission Work Programme17 . The objectives of the revision are to overcome the shortcomings associated with the implementation of Regulation (EU) 2019/2088, to significantly simplify administrative burdens in a coherent way with the rest of the Union sustainable finance framework, and to help investors efficiently understand and compare sustainability-related financial products.(5) Regulation (EU) 2019/2088 is part of the wider sustainable finance framework. As part of that wider sustainable finance framework, Regulation (EU) 2019/2088 should be reviewed commensurately. That is why its revision has been included among the simplification initiatives of the Commission in the Mission Letter to the Commissioner for Financial Services and the Savings and Investments Union16 and in the 2025 Commission Work Programme17. The objectives of the revision are to overcome the shortcomings associated with the implementation of Regulation (EU) 2019/2088, to significantly simplify administrative burdens in a coherent way with the rest of the Union sustainable finance framework, to help investors efficiently understand and compare sustainability-related financial products, and to ensure that there is a level playing field between European frontrunner companies with a genuine commitment to sustainable finance, and competitors employing weaker standards and making unsubstantiated green claims.
15 Proposal for a Directive of the European Parliament and of the Council amending Directives (EU) 2022/2464 and (EU) 2024/1760 of 26 February 2025 as regards the dates from which Member States are to apply certain corporate sustainability reporting and due diligence requirements (COM(2025) 80 final).
16 Mission Letter of the President of the European Commission of 17 September 2024, ac06a896-2645-4857-9958-467d2ce6f221_en.16 Mission Letter of the President of the European Commission of 17 September 2024, ac06a896-2645-4857-9958-467d2ce6f221_en.
17 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 11 February 2025, Commission work programme 2025 Moving forward together: A Bolder, Simpler, Faster Union, (COM/2025/45 final).17 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 11 February 2025, Commission work programme 2025 Moving forward together: A Bolder, Simpler, Faster Union, (COM/2025/45 final).

Or. en

Amendment 56

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 7

Text proposed by the CommissionAmendment
(7) It is necessary to adjust the scope of Regulation (EU) 2019/2088 and to adjust certain definitions therein to reflect those objectives. Regulation (EU) 2019/2088 should continue to require financial market participants to disclose how they consider sustainability risks affect the financial products they offer to investors. Beyond these elements, Regulation (EU) 2019/2088 should, however, focus exclusively on the specific requirements and associated disclosures applicable to financial market participants which manufacture, manage or make available sustainability-related financial products, particularly those that reference sustainability-related elements in their names or marketing documentation to end-investors. Financial advisers providing investment advice do not manufacture or manage sustainability-related financial products, nor do they make such products available to investors. For that reason, financial advisors providing investment advice should be carved out of the scope of Regulation (EU) 2019/2088 altogether. Their role is rather as distributors to identify the products made available by financial market participants that match their clients’ sustainability preferences. The rules for distributors should therefore duly reflect the changes introduced by this Regulation, especially the categorisation regime for financial products making sustainability-related claims. The same applies to the service of portfolio management, consisting of managing portfolios of financial instruments in accordance with mandates given by clients on a discretionary client-by-client basis and which are thus not designed and marketed the same way as products identified for certain target markets.(7) It is necessary to adjust the scope of Regulation (EU) 2019/2088 and to adjust certain definitions therein to reflect those objectives. Regulation (EU) 2019/2088 should continue to require financial market participants to disclose how they consider sustainability risks affect the financial products they offer to investors. Beyond these elements, Regulation (EU) 2019/2088 should, however, focus exclusively on the specific requirements and associated disclosures applicable to financial market participants which manufacture, manage or make available sustainability-related financial products, particularly those that reference sustainability-related elements in their names or marketing documentation to end-investors. Financial advisers providing investment advice do not manufacture or manage sustainability-related financial products, nor do they make such products available to investors. For that reason, financial advisors providing investment advice should be carved out of the scope of Regulation (EU) 2019/2088 altogether. Their role is rather as distributors to identify the products made available by financial market participants that match their clients’ sustainability preferences. The rules for distributors should therefore duly reflect the changes introduced by this Regulation, especially the categorisation regime for financial products making sustainability-related claims. The same applies to the service of portfolio management, consisting of managing portfolios of financial instruments in accordance with mandates given by clients on a discretionary client-by-client basis and which are thus not designed and marketed the same way as products identified for certain target markets. However, providers of asset management solutions marketed with sustainability-related characteristics or objectives, or that are instructed by their clients to consider those characteristics or objectives, should be able, on a voluntary basis or at the request of the client, to adapt those solutions to the requirements of the categories laid down in this Regulation and, where that is the case, to comply with the applicable categorisation and disclosure requirements. This should improve comparability between competing investment solutions, foster consistent application of clients’ sustainability preferences under EU distribution rules, and increase legal certainty for sustainability-related disclosures concerning those solutions.

Or. it

Amendment 57

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 7

Text proposed by the CommissionAmendment
(7) It is necessary to adjust the scope of Regulation (EU) 2019/2088 and to adjust certain definitions therein to reflect those objectives. Regulation (EU) 2019/2088 should continue to require financial market participants to disclose how they consider sustainability risks affect the financial products they offer to investors. Beyond these elements, Regulation (EU) 2019/2088 should, however, focus exclusively on the specific requirements and associated disclosures applicable to financial market participants which manufacture, manage or make available sustainability-related financial products, particularly those that reference sustainability-related elements in their names or marketing documentation to end-investors. Financial advisers providing investment advice do not manufacture or manage sustainability-related financial products, nor do they make such products available to investors. For that reason, financial advisors providing investment advice should be carved out of the scope of Regulation (EU) 2019/2088 altogether. Their role is rather as distributors to identify the products made available by financial market participants that match their clients’ sustainability preferences. The rules for distributors should therefore duly reflect the changes introduced by this Regulation, especially the categorisation regime for financial products making sustainability-related claims. The same applies to the service of portfolio management, consisting of managing portfolios of financial instruments in accordance with mandates given by clients on a discretionary client-by-client basis and which are thus not designed and marketed the same way as products identified for certain target markets.(7) It is necessary to adjust the scope of Regulation (EU) 2019/2088 and to adjust certain definitions therein to reflect those objectives. Regulation (EU) 2019/2088 should continue to require financial market participants to disclose how they consider sustainability risks affect the financial products they offer to investors. It should also require financial market participants to provide a highly limited set of disclosures containing information of high salience to the end-investor. Beyond these elements, Regulation (EU) 2019/2088 should, however, focus predominantly on the specific requirements and associated disclosures applicable to financial market participants which manufacture, manage or make available sustainability-related financial products, particularly those that reference sustainability-related elements in their names or marketing documentation to end-investors. Financial advisers providing investment advice do not manufacture or manage sustainability-related financial products, nor do they make such products available to investors. For that reason, financial advisors providing investment advice should be carved out of the scope of Regulation (EU) 2019/2088 altogether. Their role is rather as distributors to identify the products made available by financial market participants that match their clients’ sustainability preferences. The rules for distributors should therefore duly reflect the changes introduced by this Regulation, especially the categorisation regime for financial products making sustainability-related claims. The same applies to the service of portfolio management, consisting of managing portfolios of financial instruments in accordance with mandates given by clients on a discretionary client-by-client basis and which are thus not designed and marketed the same way as products identified for certain target markets.

Or. en

Amendment 58

Jaroslava Pokorná Jermanová, Jaroslav Knot, Pierre Pimpie, Tomáš Kubín

Proposal for a regulation

Recital 7 a (new)

Text proposed by the CommissionAmendment
(7a) The exclusion of investment advice and individual portfolio management from the scope of this Regulation should not affect the ability of investment firms to offer, recommend or provide financial instruments or investment services that take sustainability factors into account in order to meet their clients' sustainability preferences. Investment firms therefore remain entitled to consider, in accordance with Directive 2014/65/EU and the applicable delegated acts thereunder, all financial instruments as defined in Annex I, Section C of that Directive that integrate environmental, social or governance criteria, including financial instruments that are not categorised as sustainability-related financial products under this Regulation. In order to ensure consistency between the distribution rules and the revised categorisation regime, the Commission shall review the relevant delegated acts under Directive 2014/65/EU and Directive (EU) 2016/97 in a timely manner and synchronise their application with the date of application of this Regulation.

Or. en

Amendment 59

Angelika Winzig

Proposal for a regulation

Recital 7 a (new)

Text proposed by the CommissionAmendment
(7a) The exclusion of financial advisors and the service of portfolio management from the scope of this Regulation should be without prejudice to the ability of investment firms to provide financial services or recommend financial instruments incorporating sustainability factors in accordance with clients’ sustainability preferences. Accordingly, investment firms should remain fully entitled to consider financial instruments within the meaning of Annex I, Section C of Directive 2014/65/EU that integrate environmental, social, or governance criteria, ensuring that administrative exemptions do not restrict the availability of sustainable investment options;

Or. en

Amendment 60

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 7 a (new)

Text proposed by the CommissionAmendment
(7a) The exclusion of investment advice and portfolio management from the scope of this Regulation does not limit the ability of investment firms to offer and recommend financial instruments that integrate sustainability factors in order to meet their clients' sustainability preferences. Investment firms remain entitled, when providing services under Directive 2014/65/EU, to consider financial instruments as defined in Annex I, Section C of that Directive that incorporate environmental, social or governance criteria, irrespective of whether those instruments constitute financial products under this Regulation.

Or. en

Justification

Removing investment advice from SFDR scope must not create ambiguity about MiFID II sustainability preferences obligations. Financial instruments such as structured securities and bonds can incorporate ESG criteria without qualifying as SFDR financial products. Without explicit clarification, a regulatory gap risks undermining advisers' ability to match clients' sustainability preferences across the full product universe. This recital ensures coherence between SFDR 2.0 and the MiFID II suitability framework.

Amendment 61

Jaroslava Pokorná Jermanová, Jaroslav Knot, Pierre Pimpie, Tomáš Kubín

Proposal for a regulation

Recital 7 b (new)

Text proposed by the CommissionAmendment
(7b) The supervisory powers conferred on competent authorities under this Regulation are directed at ensuring compliance with the disclosure and categorisation requirements established herein. Competent authorities are not required, and should not be expected, to independently verify the substantive accuracy of the ESG data and sustainability-related information published by financial market participants in fulfilment of their obligations under this Regulation. The role of supervision under this Regulation is to assess whether financial market participants have complied with their procedural obligations — including the use of formalised data arrangements and documented methodologies as required under Article 12a — and whether the information disclosed is consistent with the applicable categorisation criteria and disclosure requirements. Any extension of supervisory expectations beyond this scope, in particular towards de facto certification of ESG data or auditing of underlying sustainability claims, would be disproportionate, inconsistent with the transparency-based nature of this framework, and liable to impose costs on both competent authorities and market participants that are not justified by the objectives of this Regulation.

Or. en

Amendment 62

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 7 b (new)

Text proposed by the CommissionAmendment
(7b) The standardised product categorisation and disclosure requirements introduced by this Regulation are designed primarily to protect retail investors and to enable meaningful comparability across products distributed to the general public. Professional investors as defined in Directive 2014/65/EU possess the expertise, resources and negotiating capacity to assess sustainability characteristics independently and to configure their requirements contractually. Applying the categorisation regime to financial products made available exclusively to such investors is therefore disproportionate and generates compliance costs without commensurate benefit. Financial market participants should accordingly be permitted to disapply Articles 6a, 7, 8 and 9 in respect of such products.

Or. en

Justification

Professional investors in AIFs operate with the expertise and resources to define and negotiate their own sustainability requirements contractually. Mandatory minimum standards designed to protect retail investors are disproportionate in this context and produce compliance costs without corresponding investor benefit. Allowing disapplication preserves proportionality and supports the competitiveness of EU alternative investment markets.

Amendment 63

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 8

Text proposed by the CommissionAmendment
(8) The definition in Article 2, point (17), of Regulation (EU) 2019/2088 of sustainable investment has generated a considerable number of practical implementation challenges and concerns, queries to supervisors about interpretation and their expectations, and wide divergence in practical application. Practitioners also perceive duplication and coherence issues with comparable concepts laid down elsewhere in the sustainable finance framework but which have a slightly different meaning, including those laid down in Regulation (EU) 2020/852 of the European Parliament and of the Council18 , and undue constraints for investments targeting the transition of undertakings or economic activities towards sustainability in accordance with the policy outlined in the Commission Recommendation (EU) 2023/1435 in 202319 . At the same time, the definition of sustainable investment in Regulation (EU) 2019/2088 is used by financial market participants in the design of financial products and the communication with end-investors. The practical application of the term should thus be facilitated by deleting the definition of sustainable investment, thus overcoming the uncertainty in aligning practices with it, and instead embedding the underlying concepts in a simplified form in the concrete requirements for the associated category of sustainability-related financial products. That would ensure continuity, simplified application and improved certainty for financial market participants. Therefore, the concepts of contribution to an environmental and social objective, of do not significant harm, and of good governance practices should continue to be reflected in the criteria of the relevant categories.(8) The definition in Article 2, point (17), of Regulation (EU) 2019/2088 of sustainable investment has generated a considerable number of practical implementation challenges and concerns, queries to supervisors about interpretation and their expectations, and wide divergence in practical application. Practitioners also perceive duplication and coherence issues with comparable concepts laid down elsewhere in the sustainable finance framework but which have a slightly different meaning, including those laid down in Regulation (EU) 2020/852 of the European Parliament and of the Council18 , and undue constraints for investments targeting the transition of undertakings or economic activities towards sustainability in accordance with the policy outlined in the Commission Recommendation (EU) 2023/1435 in 202319 . At the same time, the definition of sustainable investment in Regulation (EU) 2019/2088 is used by financial market participants in the design of financial products and the communication with end-investors. The practical application of the term should thus be facilitated by deleting the definition of sustainable investment, thus overcoming the uncertainty in aligning practices with it, and instead embedding the underlying concepts in a simplified form in the concrete requirements for the associated category of sustainability-related financial products. That would ensure continuity, simplified application and improved certainty for financial market participants. Therefore, the concepts of contribution to an environmental and social objective, of do not significant harm, and of good governance practices should continue to be reflected in the criteria of the relevant categories. However, to account for the comparatively limited safeguards offered by the exclusions on social and governance standards, Article 2a should be amended to ensure investors uphold the principle of no significant harm on social and governance standards, by reference to the United Nations Guiding Principles on Business and Human Rights ( UNGPs)19a and the OECD Guidelines for Multinational Enterprises19b.
18 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, pp. 13, ELI: http://data.europa.eu/eli/reg/2020/852/oj).18 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, pp. 13, ELI: http://data.europa.eu/eli/reg/2020/852/oj).
19 Commission Recommendation (EU) 2023/1425 of 27 June 2023 on facilitating finance for the transition to a sustainable economy (C/2023/3844) (OJ L 174, 7.7.2023, p. 19.).19 Commission Recommendation (EU) 2023/1425 of 27 June 2023 on facilitating finance for the transition to a sustainable economy (C/2023/3844) (OJ L 174, 7.7.2023, p. 19.).
19a https://www.oecd.org/content/dam/oecd/en/publications/reports/2023/06/oecd-guidelines-for-multinational-enterprises-on-responsible-business-conduct_a0b49990/81f92357-en.pdf
19b https://www.oecd.org/content/dam/oecd/en/publications/reports/2023/06/oecd-guidelines-for-multinational-enterprises-on-responsible-business-conduct_a0b49990/81f92357-en.pdf

Or. en

Amendment 64

Marlena Maląg

Proposal for a regulation

Recital 8 a (new)

Text proposed by the CommissionAmendment
(8a) The exclusion of investment advice and portfolio management from the scope of this Regulation should not affect the ability of investment firms to offer and recommend financial instruments or financial services taking into consideration sustainability factors to meet their clients’ sustainability preferences. Investment firms therefore remain entitled to appropriately consider for investment services, such as portfolio management and investment advice, other financial instruments, including transferable securities and money market instruments as defined in Annex I section C of Directive 2014/65/EU that take environmental, social, or governance criteria into consideration. The designation and marketing must be fair, clear, and not misleading. Transferable securities and money market instruments as defined in Annex I section C of Directive 2014/65/EU, that are not “financial products” according to Article 2(12) of Regulation 2019/2088 [or new reference] may nonetheless incorporate sustainability attributes identified in Articles 7, 8, and 9 of this Regulation. Furthermore, investment firms and financial market participants can rely on information disclosed in the key information document according to Regulation (EU) 1286/2014 in order to assess the sustainability factors of the sustainability-related product. This is particularly important if financial products invest in PRIIPs with sustainability-related factors that do not qualify as financial products under this Regulation.

Or. en

Amendment 65

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 9

Text proposed by the CommissionAmendment
(9) To encourage investments contributing to climate change mitigation and adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, to pollution prevention and control, and the protection and restoration of biodiversity and ecosystems, environmental objectives of sustainability related financial products should be defined according to Article 9 of Regulation (EU) 2020/852. Social objectives of sustainability related financial products should be understood as including the principles of the European Pillar of Social Rights20 and the Sustainable Development Goals.(9) To encourage investments contributing to climate change mitigation and adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, to pollution prevention and control, and the protection and restoration of biodiversity and ecosystems, environmental objectives of sustainability related financial products should be defined according to Article 9 of Regulation (EU) 2020/852. Social objectives of sustainability related financial products should be understood as pertaining to social factors such as working conditions, social partner involvement, collective bargaining, equality, non-discrimination, diversity and inclusion, and human rights, as included in the International Bill of Human Rights and other core UN human rights conventions; the ILO Declaration on Fundamental Principles and Rights at Work, the fundamental conventions of the ILO; the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises; the European Social Charter principles; the European Pillar of Social Rights, and the Charter of Fundamental Rights of the European Union.
20 The European Pillar of Social Rights in 20 principles - Employment, Social Affairs and Inclusion.

Or. en

Amendment 66

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 10

Text proposed by the CommissionAmendment
(10) The proposal for a Directive of the European Parliament and of the Council amending Directives (EU) 2022/2464 and (EU) 2024/176021 aims at an overall simplification and burden-reduction of sustainability disclosures and, focus their requirements on the largest companies. That same aim justifies focussing the scope of Regulation (EU) 2019/2088 on sustainability-related financial products and on the financial market participants which manufacture, manage or make those products available to investors. In addition, Directive (EU) 2022/2464 already sets horizontal entity level disclosures of sustainability information covering all sectors. Therefore, the deletion of the specific requirements for financial market participants to make disclosures on their consideration of adverse impacts in their investment decisions at the level of the entity ensures no duplication in disclosure requirements for entities also in scope of Directive (EU) 2022/2464.(10) The proposal for a Directive of the European Parliament and of the Council amending Directives (EU) 2022/2464 and (EU) 2024/176021 aims at an overall simplification and burden-reduction of sustainability disclosures and, focus their requirements on the largest companies. That same aim justifies focussing the scope of Regulation (EU) 2019/2088 on sustainability-related financial products and on the financial market participants which manufacture, manage or make those products available to investors. In addition, Directive (EU) 2022/2464 already sets horizontal entity level disclosures of sustainability information covering all sectors except for undertakings managing investments subject to a fiduciary duty, as specified by Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards. This effectively exempts the majority of financial market participants within scope of this Regulation from horizontal entity level disclosures. Therefore a limited set of targeted disclosures for financial market participants, with high value to the end-investor will constitute an important complement to the limited scope of Directive (EU) 2022/2464.
21 Proposal for a Directive of the European Parliament and of the Council amending Directives (EU) 2022/2464 and (EU) 2024/1760 as regards the dates from which Member States are to apply certain corporate sustainability reporting and due diligence requirements (COM/2025/80 final).21 Proposal for a Directive of the European Parliament and of the Council amending Directives (EU) 2022/2464 and (EU) 2024/1760 as regards the dates from which Member States are to apply certain corporate sustainability reporting and due diligence requirements (COM/2025/80 final).

Or. en

Amendment 67

Marlena Maląg

Proposal for a regulation

Recital 10 a (new)

Text proposed by the CommissionAmendment
(10a) In order to ensure consistency, legal certainty and clarity for financial market participants and investors, it is necessary to align existing supervisory guidance with the framework established by this Regulation. Given that this Regulation introduces harmonised sustainability-related product categories, together with binding criteria and rules on the use of sustainability-related terms in financial product names, the objectives pursued by the European Securities and Markets Authority’s guidelines on funds’ names using ESG or sustainability-related terms21a are fully addressed by this Regulation, ensuring adequate investor protection. As those guidelines were adopted in the absence of such a harmonised categorisation, their continued application would risk creating overlaps, inconsistencies and uncertainty. Therefore, those guidelines should be withdrawn, and the Commission, together with ESMA, should ensure timely and clear communication to financial market participants and investors regarding their withdrawal
21a https://www.esma.europa.eu/sites/default/files/2024-08/ESMA34-1592494965-657_Guidelines_on_funds_names_using_ESG_or_sustainability_related_terms.pdf

Or. en

Amendment 68

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 11

Text proposed by the CommissionAmendment
(11) Financial market participants should not be prohibited from referring to information on sustainability aspects of an ancillary nature in the regulatory disclosures related to financial products even if not categorised as sustainability-related financial products. Such information should be fair, clear and not misleading. However, to protect investors and distinguish clearly between non-categorised and categorised financial products, such information should not constitute a prominent element in those disclosures and should not feature in the name or marketing communications of such financial products. In addition, for financial products that are categorised as sustainability-related financial products, financial market participants should ensure that the claims in the regulatory, marketing documentations and names of their sustainability-related financial products are consistent with the category under which they fall and their strategies.(11) Financial market participants should not be prohibited from referring to information on sustainability aspects of an ancillary nature in the regulatory disclosures related to financial products even if not categorised as sustainability-related financial products. Such information should be fair, clear and not misleading. Information on the consideration or integration of sustainability factors, including, where relevant, information on exclusions, engagement strategies or other sustainability-related characteristics, should not in itself be considered a sustainability-related statement within the meaning of Articles 7, 8 or 9, as long as it remains limited, factual and non-promotional. Distinction between unclassified and classified financial products should therefore be based on compliance with the criteria laid down in this Regulation and the relevant statement, rather than on the nature of the sustainability-related information disclosed. However, to protect investors and distinguish clearly between non-categorised and categorised financial products, such information should not constitute a prominent element in those disclosures and should not feature in the name or marketing communications of such financial products. Where that information is provided in relation to financial products not classified as sustainability-related financial products, it must be accompanied by a clear and prominent statement that the product does not belong to any category of sustainability-related financial products under this Regulation. References to the integration of sustainability risks under Article 6 are not to be considered sustainability claims per se. In addition, for financial products that are categorised as sustainability-related financial products, financial market participants should ensure that the claims in the regulatory, marketing documentations and names of their sustainability-related financial products are consistent with the category under which they fall and their strategies.

Or. it

Amendment 69

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 11

Text proposed by the CommissionAmendment
(11) Financial market participants should not be prohibited from referring to information on sustainability aspects of an ancillary nature in the regulatory disclosures related to financial products even if not categorised as sustainability-related financial products. Such information should be fair, clear and not misleading. However, to protect investors and distinguish clearly between non-categorised and categorised financial products, such information should not constitute a prominent element in those disclosures and should not feature in the name or marketing communications of such financial products. In addition, for financial products that are categorised as sustainability-related financial products, financial market participants should ensure that the claims in the regulatory, marketing documentations and names of their sustainability-related financial products are consistent with the category under which they fall and their strategies.(11) Financial market participants should not be prohibited from referring to information on sustainability aspects of an ancillary nature in the regulatory disclosures related to financial products even if not categorised as sustainability-related financial products. Such information should be fair, clear and not misleading. However, to protect investors and distinguish clearly between non-categorised and categorised financial products, such information should not constitute a prominent element in those disclosures and should not feature in the name or marketing communications of such financial products. To ensure adequate transparency and comparability between categorised and not categorised products, financial market participants should include a clear disclaimer on their non-categorised products. In addition, for financial products that are categorised as sustainability-related financial products, financial market participants should ensure that the claims in the regulatory, marketing documentations and names of their sustainability-related financial products are consistent with the category under which they fall and their strategies.

Or. en

Amendment 70

Sirpa Pietikäinen

Proposal for a regulation

Recital 11 a (new)

Text proposed by the CommissionAmendment
(11a) As a part of labelling financial products promoting positive sustainability elements or impact as well as excluding sustainability risks, it is equally important for investors, especially retail investors, to know whether financial products include sustainability risks. Therefore, financial market participants responsible for financial products need to include information also of a missing sustainability assessment or possible ESG risks related to the products both at the product information level as well as annual reporting. A product level warning label would enable retail investors and consumers to be informed about the substantive financial risks related to stranded assets as well as the cumulative risks related to investments from unidentified sustainability risks.

Or. en

Amendment 71

Angelika Winzig

Proposal for a regulation

Recital 12

Text proposed by the CommissionAmendment
(12) Building on the feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, there is a need to set up EU categories for products making sustainability-related claims. Such categories are called for to address the current misuse of the Article 8 and 9 disclosures and to harmonise at EU level the implementation and supervisory practices for products making sustainability-related claims. Such categories should rely on clear criteria to combat greenwashing, facilitate end-investors understanding of products’ sustainability-related strategies and objectives, and allow for an efficient distribution system based on investors’ sustainability preferences. Feedback favours the creation of three categories which should be distinguished in terms of their claims. The sustainable category should cover products claiming to invest in companies, assets, activities or projects that are already sustainable or pursue a particular objective related to sustainability factors, including environmental or social objectives. The transition category should cover products claiming to invest in companies, assets, activities or projects that are on a credible path to sustainability or that pursue particular environmental or social transition-related objectives. The ESG basics category should cover products claiming to integrate other sustainability considerations beyond sustainability risks in their investment strategy. This approach would also be consistent with recent regulatory guidance by the European Securities and Markets Authority22 . These claims by financial products are consistent with the notion of ‘environmental claims’ under Directive 2005/29/EC23 (Unfair Commercial Practices Directive, as amended by Directive (EU) 2024/825 as regards empowering consumers for the green transition24 ). Consistent with Article 3(4) of Directive 2005/29/EC, requirements under that Directive are met by proper application of the requirements of this Regulation.(12) Building on the feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, there is a need to set up EU categories for products making sustainability-related claims. Such categories are called for to address the current misuse of the Article 8 and 9 disclosures and to harmonise at EU level the implementation and supervisory practices for products making sustainability-related claims. Such categories should rely on clear criteria to combat greenwashing, facilitate end-investors understanding of products’ sustainability-related strategies and objectives, and allow for an efficient distribution system based on investors’ sustainability preferences. Feedback favours the creation of three categories which should be distinguished in terms of their claims. The sustainable category should cover products claiming to invest in companies, assets, activities or projects that are already sustainable or pursue a particular objective related to sustainability factors, including environmental or social objectives. The transition category should cover products claiming to invest in companies, assets, activities or projects that are on a credible path to sustainability or that pursue particular environmental or social transition-related objectives. The ESG integration category should cover products claiming to integrate other sustainability considerations beyond sustainability risks in their investment strategy. This approach would also be consistent with recent regulatory guidance by the European Securities and Markets Authority22 . These claims by financial products are consistent with the notion of ‘environmental claims’ under Directive 2005/29/EC23 (Unfair Commercial Practices Directive, as amended by Directive (EU) 2024/825 as regards empowering consumers for the green transition24 ). Consistent with Article 3(4) of Directive 2005/29/EC, requirements under that Directive are met by proper application of the requirements of this Regulation.
22 ESMA, Guidelines of 21 August 2024 on funds names using ESG or sustainability related terms, ESMA34-1592494965-657.22 ESMA, Guidelines of 21 August 2024 on funds names using ESG or sustainability related terms, ESMA34-1592494965-657.
23 Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’) (OJ L 149, 11.6.2005, ELI: http://data.europa.eu/eli/dir/2005/29/oj)23 Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’) (OJ L 149, 11.6.2005, ELI: http://data.europa.eu/eli/dir/2005/29/oj)
24 Directive (EU) 2024/825 of the European Parliament and of the Council of 28 February 2024 amending Directives 2005/29/EC and 2011/83/EU as regards empowering consumers for the green transition through better protection against unfair practices and through better information (OJ L, 2024/825, 6.3.2024, ELI: http://data.europa.eu/eli/dir/2024/825/oj)24 Directive (EU) 2024/825 of the European Parliament and of the Council of 28 February 2024 amending Directives 2005/29/EC and 2011/83/EU as regards empowering consumers for the green transition through better protection against unfair practices and through better information (OJ L, 2024/825, 6.3.2024, ELI: http://data.europa.eu/eli/dir/2024/825/oj)

Or. en

Justification

Renaming the category from 'ESG Basics' to 'ESG Integration' replaces a commercially unviable and potentially derogatory label with the globally established industry standard term for this practice. This change ensures that the category accurately reflects the professional, systematic incorporation of sustainability risks into traditional financial analysis without creating unintended reputational disadvantages for product manufacturers.

Amendment 72

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 12 a (new)

Text proposed by the CommissionAmendment
(12a) With a view to firms meeting their clients’ sustainability preferences, the exclusion of investment advice and portfolio management from the scope of this Regulation should be without prejudice to the ability of investment firms to offer and recommend financial instruments or financial services taking account of sustainability factors. Therefore, investment firms remain allowed, for investment services such as portfolio management and investment advice, to consider other financial instruments, including negotiable securities and money market instruments, as defined in Section C of Annex I to Directive 2014/65/EU, that take account of environmental, social or governance criteria. Names and marketing must be fair, clear and not misleading.

Or. it

Amendment 73

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 13

Text proposed by the CommissionAmendment
(13) Such categories should help distributors identify the products that match their clients’ sustainability preferences and perform their target market assessment and should therefore be reflected in the rules applicable under Commission Delegated Regulation (EU) 2017/56525, Commission Delegated Directive (EU) 2017/59326, and Commission Delegated Regulations (EU) 2017/235827and (EU) 2017/235928. This would provide end-investors with a clear understanding of the main features and ambitions of sustainability-related products.(13) Such categories should help distributors identify the products that match their clients’ sustainability preferences and perform their target market assessment and should therefore be incorporated into the rules applicable under Commission Delegated Regulation (EU) 2017/56570, Commission Delegated Directive (EU) 2017/59371, and Commission Delegated Regulations (EU) 2017/235872 and (EU) 2017/235973. This would provide end-investors with a clear understanding of the key features and ambitions of sustainability-related products. What is more, the distribution rules contained in those delegated acts should ensure that the distinction between categorised and non-categorised financial products is duly taken into account when assessing customers' sustainability preferences of and the sustainability objectives of the target market.
25 Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (OJ L 87, 31.3.2017, ELI: http://data.europa.eu/eli/reg_del/2017/565/oj)
26 Commission Delegated Regulation (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits (OJ L 87, 31.3.2017, ELI: http://data.europa.eu/eli/dir_del/2017/593/oj)
27 Commission Delegated Regulation (EU) 2017/2358 of 21 September 2017 supplementing Directive (EU) 2016/97 of the European Parliament and of the Council with regard to product oversight and governance requirements for insurance undertakings and insurance distributors (OJ L 341, 20.12.2017, ELI: http://data.europa.eu/eli/reg_del/2017/2358/oj)
28 Commission Delegated Regulation (EU) 2017/2359 of 21 September 2017 supplementing Directive (EU) 2016/97 of the European Parliament and of the Council with regard to information requirements and conduct of business rules applicable to the distribution of insurance-based investment products (OJ L 341, 20.12.2017, ELI: http://data.europa.eu/eli/reg_del/2017/2359/oj)

Or. it

Amendment 74

Angelika Winzig

Proposal for a regulation

Recital 13

Text proposed by the CommissionAmendment
(13) Such categories should help distributors identify the products that match their clients’ sustainability preferences and perform their target market assessment and should therefore be reflected in the rules applicable under Commission Delegated Regulation (EU) 2017/56525 , Commission Delegated Directive (EU) 2017/59326 , and Commission Delegated Regulations (EU) 2017/235827 and (EU) 2017/235928 . This would provide end-investors with a clear understanding of the main features and ambitions of sustainability-related products.(13) Such categories should help distributors identify the products that match their clients’ sustainability preferences and perform their target market assessment and should therefore be reflected in the rules applicable under Commission Delegated Regulation (EU) 2017/56525 , Commission Delegated Directive (EU) 2017/59326 , and Commission Delegated Regulations (EU) 2017/235827 and (EU) 2017/235928 . This would provide end-investors with a clear understanding of the main features and ambitions of sustainability-related products, without prejudice to the ability of other financial instruments and investment services to incorporate sustainability-related characteristics;
25 Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (OJ L 87, 31.3.2017, ELI: http://data.europa.eu/eli/reg_del/2017/565/oj)25 Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (OJ L 87, 31.3.2017, ELI: http://data.europa.eu/eli/reg_del/2017/565/oj)
26 Commission Delegated Regulation (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits (OJ L 87, 31.3.2017, ELI: http://data.europa.eu/eli/dir_del/2017/593/oj)26 Commission Delegated Regulation (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits (OJ L 87, 31.3.2017, ELI: http://data.europa.eu/eli/dir_del/2017/593/oj)
27 Commission Delegated Regulation (EU) 2017/2358 of 21 September 2017 supplementing Directive (EU) 2016/97 of the European Parliament and of the Council with regard to product oversight and governance requirements for insurance undertakings and insurance distributors (OJ L 341, 20.12.2017, ELI: http://data.europa.eu/eli/reg_del/2017/2358/oj)27 Commission Delegated Regulation (EU) 2017/2358 of 21 September 2017 supplementing Directive (EU) 2016/97 of the European Parliament and of the Council with regard to product oversight and governance requirements for insurance undertakings and insurance distributors (OJ L 341, 20.12.2017, ELI: http://data.europa.eu/eli/reg_del/2017/2358/oj)
28 Commission Delegated Regulation (EU) 2017/2359 of 21 September 2017 supplementing Directive (EU) 2016/97 of the European Parliament and of the Council with regard to information requirements and conduct of business rules applicable to the distribution of insurance-based investment products (OJ L 341, 20.12.2017, ELI: http://data.europa.eu/eli/reg_del/2017/2359/oj)28 Commission Delegated Regulation (EU) 2017/2359 of 21 September 2017 supplementing Directive (EU) 2016/97 of the European Parliament and of the Council with regard to information requirements and conduct of business rules applicable to the distribution of insurance-based investment products (OJ L 341, 20.12.2017, ELI: http://data.europa.eu/eli/reg_del/2017/2359/oj)

Or. en

Amendment 75

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 14

Text proposed by the CommissionAmendment
(14) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability-related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. A list of voluntary indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective.(14) To help comparability and boost integrity, a minimum portion of 50% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 50% threshold reflects the wide variety of asset classes, investment strategies and geographic exposures covered by the categorisation system, including multi-asset mandates, insurance general accounts, and alternative and private asset strategies, for which higher thresholds are structurally unachievable given current data availability and the non-applicability of Union sustainability reporting obligations to non-Union issuers. It provides sufficient margin for diversification, hedging and liquidity allocations while ensuring that a clear majority of each product's investments are aligned with its sustainability-related claim. The threshold shall be subject to review by the Commission in accordance with Article 19, taking into account data on actual alignment rates achieved by financial products distributed across the Union. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no 'one size fits all' on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market.

Or. en

Justification

The 70% threshold is empirically undeliverable for diversified, multi-asset and insurance mandates given current data availability, reduced CSRD scope post-Omnibus, and the non-applicability of EU Taxonomy reporting to non-EU issuers. A 50% threshold, combined with mandatory disclosure of the non-qualifying portion and the category exclusions, provides sufficient market integrity without structurally barring credible ESG strategies from the categorisation system.

Amendment 76

Luděk Niedermayer

Proposal for a regulation

Recital 14

Text proposed by the CommissionAmendment
(14) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability-related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. A list of voluntary indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective.(14) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability-related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. For the purpose of disclosing principal adverse impacts, financial market participants should be able to use, in full or in part, appropriate sustainability-related indicators, including indicators established pursuant to this Regulation, or another transparent methodology that is appropriate to the investment strategy of the financial product and that enables investors to understand those impacts. A list of voluntary indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective.

Or. en

Amendment 77

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 14

Text proposed by the CommissionAmendment
(14) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability-related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. A list of voluntary indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective.(14) To help comparability and boost integrity, a minimum portion of 80% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 80% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines. Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. A list of mandatory principal adverse impact disclosures allowing for comparability between financial products, complemented by a list of material indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective.

Or. en

Amendment 78

Fernando Navarrete Rojas

Proposal for a regulation

Recital 14

Text proposed by the CommissionAmendment
(14) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability-related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. A list of voluntary indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective.(14) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability-related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. A list of voluntary indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective.

Or. en

Amendment 79

Jaroslava Pokorná Jermanová, Jaroslav Knot, Pierre Pimpie, Tomáš Kubín

Proposal for a regulation

Recital 14 a (new)

Text proposed by the CommissionAmendment
(14a) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. Indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective.

Or. en

Amendment 80

Fernando Navarrete Rojas

Proposal for a regulation

Recital 14 a (new)

Text proposed by the CommissionAmendment
(14a) Financial market participants, such as institutions for occupational retirement provision (IORPs) and alternative investment funds, are frequently required by prudential frameworks, liability matching principles, or sound portfolio management practices to hold a significant proportion of their assets for treasury, hedging, or liquidity management purposes. These assets include cash, cash equivalents, money market funds, and financial derivatives. Including these structural and often mandatory liquid assets in the calculation of the minimum sustainability thresholds would create an unjustified mathematical penalty that does not reflect the actual sustainability ambition of the financial product. The true assessment of whether a financial product complies with the 70% threshold should be based on the actual, active investments made in the real economy. Therefore, to ensure that the threshold accurately measures the genuine transition or sustainable investment effort, assets held strictly for liquidity management and hedging purposes should be completely excluded from both the numerator and the denominator when calculating the proportion of investments for the transition and sustainable categories.

Or. en

Amendment 81

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 14 a (new)

Text proposed by the CommissionAmendment
(14a) The minimum proportion of investments referred to in Articles 7, 8 and 9 should be calculated against the net investment portfolio of the financial product. Investments held for liquidity management purposes, instruments held for hedging purposes, and investments in general-purpose sovereign debt instruments issued by central governments or central banks should be excluded from both the numerator and the denominator of that calculation. Including such investments in the denominator whilst excluding them from the numerator would inflate the effective required ratio beyond the stated threshold, undermining the integrity of the categorisation system and creating unjustified barriers to participation for a broad range of investment strategies and asset classes.

Or. en

Justification

proposal does not define the denominator of the threshold calculation. Mandatory liquidity, hedging instruments and sovereign debt cannot qualify for the numerator yet inflate the denominator if included, raising the effective required ratio beyond the stated threshold. This recital establishes the net portfolio principle in Level 1.

Amendment 82

Isabel Benjumea Benjumea, Fernando Navarrete Rojas

Proposal for a regulation

Recital 14 a (new)

Text proposed by the CommissionAmendment
(14a) Once an investment has been made, any subsequent changes that result in an investment no longer meeting the eligibility requirements of the relevant product category and that are beyond the control of the financial market participant should not imply a breach of the 70 % threshold but should be reported to investors as passive breaches. This should also apply to financial products that invest in illiquid assets.

Or. es

Amendment 83

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 15

Text proposed by the CommissionAmendment
(15) The criteria for these categories should also simplify the way financial products today using the sustainable investment definition are required to manage principal adverse impacts on environmental or social objectives. The current approach mandates financial market participants to consider the principal adverse impact indicators on sustainability factors, currently set out in Commission Delegated Regulation (EU) 2022/128829 . Stakeholders’ feedback highlights that this approach has not led to a robust or comparable mechanism to ensure no harm. Therefore, the current approach should be replaced by mandating financial market participants to apply a common set of clear exclusions covering practices and sectors which are commonly agreed to be most harmful and to identify and disclose the principal adverse impacts of their investments on sustainability factors. These should include, where relevant, adverse impacts on climate change mitigation and climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems. Financial market participants should also disclose any actions taken to address the identified principal adverse impacts. In the specific context of this framework, this would ensure a comparable and clear approach to ensure no harm. Such approach has been considered successful and effective under the implementation of Commission Delegated Regulation (EU) 2020/1818. Such exclusions should also ensure, to the extent possible, continuity with the existing regulatory framework, including with the exclusions laid down in Commission Delegated Regulation (EU) 2020/1818 and in the ESMA guidelines on funds names and also rely on data available from investee companies or data that can be reasonably estimated by financial market participants. Such exclusions should reflect politically agreed environmental and social goals.(15) The criteria for these categories should also simplify the way financial products today using the sustainable investment definition are required to manage principal adverse impacts on environmental or social objectives. The current approach mandates financial market participants to consider the principal adverse impact indicators on sustainability factors, currently set out in Commission Delegated Regulation (EU) 2022/128829 . Stakeholders’ feedback highlights that this approach has not led to a robust or comparable mechanism to ensure no harm. Therefore, the current approach should be replaced by mandating financial market participants to apply a common set of clear exclusions covering practices and sectors which are commonly agreed to be most harmful and to identify and disclose the principal adverse impacts of their investments on sustainability factors. These should include, where relevant, adverse impacts on climate change mitigation and climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems. Financial market participants should also disclose any actions taken to address the identified principal adverse impacts. In the specific context of this framework, this would ensure a comparable and clear approach to ensure no harm. Such approach has been considered successful and effective under the implementation of Commission Delegated Regulation (EU) 2020/1818. Such exclusions should also ensure, to the extent possible, continuity with the existing regulatory framework, including with the exclusions laid down in Commission Delegated Regulation (EU) 2020/1818 and in the ESMA guidelines on funds names and also rely on data available from investee companies or data that can be reasonably estimated by financial market participants. Such exclusions should reflect politically agreed environmental and social goals. To ensure interoperability, financial market participants may indicate compliance with such exclusions by reference to widely accepted international standards including the UNGPs, the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises cited therein, and through equivalent international frameworks such as the International Finance Corporation (IFC) performance standards, the World Bank Integrity Compliance Guidelines and the IFC's Corporate Governance Development Framework.
29 Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council with regard to regulatory technical standards specifying the details of the content and presentation of the information in relation to the principle of ‘do no significant harm’, specifying the content, methodologies and presentation of information in relation to sustainability indicators and adverse sustainability impacts, and the content and presentation of the information in relation to the promotion of environmental or social characteristics and sustainable investment objectives in pre-contractual documents, on websites and in periodic reports (OJ L 332, 27.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg_del/2022/1288/oj).29 Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council with regard to regulatory technical standards specifying the details of the content and presentation of the information in relation to the principle of ‘do no significant harm’, specifying the content, methodologies and presentation of information in relation to sustainability indicators and adverse sustainability impacts, and the content and presentation of the information in relation to the promotion of environmental or social characteristics and sustainable investment objectives in pre-contractual documents, on websites and in periodic reports (OJ L 332, 27.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg_del/2022/1288/oj).

Or. en

Amendment 84

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 16

Text proposed by the CommissionAmendment
(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council, on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. Financial market participants offering products under the transition category should remain free to apply any exclusions they consider appropriate to their investment strategy and to disclose those exclusions to investors. The integrity of the transition category is assured through the contribution threshold under paragraph 1, point (a). Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.
30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts

Or. en

Justification

Financial market participants offering products under the transition category remain free to apply any exclusions they consider appropriate to their investment strategy and to disclose those exclusions to investors. The integrity of the transition category is assured through the contribution threshold under paragraph 1, point (a).

Amendment 85

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 16

Text proposed by the CommissionAmendment
(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30, on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831, the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council,30 on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831, the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines.
30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts

Or. it

Amendment 86

Luděk Niedermayer

Proposal for a regulation

Recital 16

Text proposed by the CommissionAmendment
(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(16) The transition category should consist of financial products that aim to encourage and support the transition of undertakings, economic activities and other assets towards sustainability, or otherwise contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects for the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite, oil fuels or gaseous fuels, as well as companies using hard coal or lignite for power generation that do not have a time-bound and measurable plan to phase out such activity. Companies deriving revenues from the exploration, extraction or refining of oil fuels or gaseous fuels should be excluded unless they demonstrate a credible shift in capital expenditure towards activities supporting the transition, in particular Taxonomy-aligned activities, and have in place a time-bound and measurable strategy to reduce their Scope 1 and Scope 2 greenhouse gas emissions. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.
30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts

Or. en

Amendment 87

Pascal Canfin, Stéphanie Yon-Courtin

Proposal for a regulation

Recital 16

Text proposed by the CommissionAmendment
(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council, on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans, such as the plans detailed in Regulation (EU) 2013/34, or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.
30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts

Or. en

Justification

This amendment reinforces the link between the credible transition plan and the plans as referred in the CSRD.

Amendment 88

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 16

Text proposed by the CommissionAmendment
(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Guiding Principles on Business and Human Rights (UNGPs) or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.
30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts

Or. en

Amendment 89

Martin Günther

Proposal for a regulation

Recital 16

Text proposed by the CommissionAmendment
(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Guiding Principles on Business and Human Rights or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.
30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts

Or. en

Amendment 90

Janusz Lewandowski

Proposal for a regulation

Recital 16

Text proposed by the CommissionAmendment
(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the cultivation and production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(16) The transition category should consist of financial products that aim to support the transition of undertakings, economic activities and other assets towards sustainability, or contribute to such transition. This category aims at providing such products with disclosures and criteria which accurately reflect transition strategies and address the current implementation challenges arising from the lack of recognition of transition finance in the definition of sustainable investment in Article 2, point (17), of Regulation (EU) 2019/2088. Such challenges include difficulties for financial market participants wanting to pursue and disclose transition-related strategies as well as confusion and lack of appropriate disclosures for end-investors interested in investing in products with transitional objective. This category should therefore bolster the visibility, transparency and integrity of financial products which invest in the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition. This category should therefore capture financial products with a high level of transition ambition, selecting notably investments based on proven standards and tools, including centred on strategies tracking or replicating EU Climate Transition benchmarks (CTB) or EU Paris-aligned benchmarks (PAB) in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council30 , on investing in transitional economic activities or in undertakings investing their capital expenditures in accordance with Regulation (EU) 2020/852, or on investing in undertakings or economic activities that commit to future improvements through credible transition plans or science-based targets. This category should also capture financial products with a transition-related performance set at the level of the portfolio, such as reducing portfolio financed emission over time, under the condition that the underlying investments are coherent with the transition-related objective of the products. To ensure a meaningful contribution to the international and European climate goals, financial products which pursue a climate change mitigation objective should align their ambition with that in the Paris Agreement and in Regulation (EU) 2021/1119, in particular for financial market participants relying on transition plans and science-based targets from companies or projects, or when pursuing a sustainability-related engagement strategy with investee companies. This category should also exclude activities which are commonly agreed to be harmful to the environment and society, while giving investors the possibility to invest in companies at different starting points in their transition efforts. These exclusions should ensure sufficient alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using certain ESG terms in their names, including ‘transition’-related terms. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/181831 , the production of tobacco, violations of the United Nations Global Compact (UNGC) principles or the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (OECD MNEs), and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, like products falling under the sustainable category, products falling under the transition category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.
30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts31 COMMISSION DELEGATED REGULATION (EU) …/... amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons C(2025)3801 Delegated act details - Register of delegated acts

Or. en

Amendment 91

Janusz Lewandowski

Proposal for a regulation

Recital 16 a (new)

Text proposed by the CommissionAmendment
(16a) The aim of the transition category to promote the transition of undertakings, economic activities, or other assets towards better environmental or social performance, or that contribute to the environmental or social transition, will be best served by criteria that preserve investment signals in the clean energy transition. To this aim, the exclusion criteria of the transition category should implement the principle of excluding the projects not compatible with the transition, and not the companies carrying out the projects. This principle will avoid the risk of dissuading the investments needed by companies engaged in and undergoing the transition.

Or. en

Amendment 92

Luděk Niedermayer

Proposal for a regulation

Recital 16 a (new)

Text proposed by the CommissionAmendment
(16a) Sustainability-related engagement strategies may constitute a relevant approach where they are relied upon by a financial product to meet the applicable category requirements. Financial market participants should not be required to pursue, disclose or explain the absence of such strategies where the financial product meets those requirements through other investment approaches.

Or. en

Amendment 93

Janusz Lewandowski

Proposal for a regulation

Recital 16 b (new)

Text proposed by the CommissionAmendment
(16b) In Delegated Regulation (EU) 2022/1288, among indicators applicable to investments in investee companies, Principle Adverse Impact (PAI) indicator 14, “Exposure to controversial weapons (anti-personnel mines, cluster munitions, chemical weapons and biological weapons)” should be renamed “Exposure to prohibited weapons (anti-personnel mines, cluster munitions, chemical weapons and biological weapons)”. This to guarantee alignment and consistency across EU legislation with the concept of prohibited weapons, as introduced by Delegated Regulation (EU) 2025/1775, part of the Defence Readiness Omnibus.

Or. en

Amendment 94

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 17

Text proposed by the CommissionAmendment
(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite.(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable, transition or impact standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGPs or OECD MNEs, and hard coal and lignite. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. These products should also identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.

Or. en

Amendment 95

Luděk Niedermayer

Proposal for a regulation

Recital 17

Text proposed by the CommissionAmendment
(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite.(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite. Financial products in the ESG basics category should remain subject to proportionate requirements and should not be required, as a condition for that category, to identify and disclose principal adverse impacts of their investments on sustainability factors or to explain actions taken in relation to those impacts.

Or. en

Amendment 96

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 17

Text proposed by the CommissionAmendment
(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite.(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group' reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. Financial market participants offering products under the ESG basics category should remain free to apply any exclusions they consider appropriate to their investment strategy and to disclose those exclusions to investors. The integrity of the ESG basics category is assured through the integration threshold under paragraph 1, point (a).

Or. en

Amendment 97

Angelika Winzig

Proposal for a regulation

Recital 17

Text proposed by the CommissionAmendment
(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite.(17) The ESG integration category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite.

Or. en

Justification

Renaming the category from 'ESG Basics' to 'ESG Integration' replaces a commercially unviable and potentially derogatory label with the globally established industry standard term for this practice. This change ensures that the category accurately reflects the professional, systematic incorporation of sustainability risks into traditional financial analysis without creating unintended reputational disadvantages for product manufacturers.

Amendment 98

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 17

Text proposed by the CommissionAmendment
(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite.(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs.

Or. it

Amendment 99

Janusz Lewandowski

Proposal for a regulation

Recital 17

Text proposed by the CommissionAmendment
(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the cultivation and production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite.(17) The ESG basics category should consist of financial products the strategy or design of which is based on selected sustainability factors. Feedback received during the targeted and open public consultations, the technical workshops and roundtables, the Commission expert group’ reports and the call for evidence, as well as evidence of investor preferences in diverse consumer studies, highlights the need to cater for such financial products to allow for innovative sustainability approaches and for end-investor preferences which include products avoiding harmful investments. The criteria should cater for investments which do not specifically pursue a sustainability or transition related objective but integrate sustainability factors in their investment strategies through credible sustainability-related approaches. The criteria should list several approaches which could be adopted by financial market participants, such as outperformance of the investment universe of reference benchmarks measured by an ESG rating or a sustainability indicator, a combination of sustainable or transition standards, as well as investments that favour undertakings or economic activities with a proven positive track record on certain sustainability factors. This category should also exclude activities which are commonly agreed to be harmful to the environment and society in alignment with the ones defined under the EU Climate Benchmarks and introduced by the ESMA guidelines on funds names for all funds using ESG terms, but ‘sustainability-related terms or ‘impact’-related ones. They should cover activities related to prohibited weapons as defined in the upcoming amendment to Regulation (EU) 2020/1818, the production of tobacco, violations of the UNGC principles or OECD MNEs, and hard coal and lignite.

Or. en

Amendment 100

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 18

Text proposed by the CommissionAmendment
(18) The sustainable category should consist of financial products that invest in companies, assets or activities that are sustainable or that pursue or positively contribute to environmental and / or social objectives. This category should capture financial products with a high level of ambition in that regard, selecting notably investments based on proven standards and tools, including centred on strategies replicating or managed in reference to an EU Paris-aligned benchmarks in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council32 , on investing in sustainable economic activities in accordance with Regulation (EU) 2020/852, on investing in instruments issued in accordance with Regulation (EU) 2023/2631 of the European Parliament and of the Council33 , and on investments in relation to operations benefiting from a Union budgetary guarantee or financial instruments under Union programmes pursuing environmental or social objectives. Accordingly, the exclusions for financial products in this category should extend beyond those for the other two categories and encompass activities where the value chain is associated with fossil fuels, including the expansion of fossil fuels. In particular, the exclusions should include the ones of the transition and ESG basics category, in addition to activities linked to oil fuels, gaseous fuels, electricity generation with a GHG intensity of more than 100 g CO2 e/kWh. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, beyond these exclusions, products falling under the sustainable category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts. This requirement would complement the common binary exclusions and ensure that any other principal adverse impacts on sustainability factors are identified, disclosed, and potentially addressed. It would bring accurate transparency on adverse impacts, therefore allowing end-investors to understand the potential harm of such products, while bringing more legal clarity on the required obligation to financial market participants than the current principle of ‘consideration’ of principal adverse impact indicators. Indicators should be developed that build on the current principal adverse impact indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1888 and Commission Delegated Regulation (EU) 2023/2772 for voluntary use by financial market participants when complying with the identification and disclosure of principal adverse impacts. However, financial market participants should have the flexibility to disclose these principal adverse impacts using a different approach, such as different indicators or a qualitative explanation of such impacts and actions, if it fits better the nature of the impact identified or addressed. This flexibility on how to identify the impacts should allow them to focus on the impacts which are actually relevant for their products depending on the assets, strategies and objectives pursued. This requirement would align to a certain degree with existing criteria in other international frameworks while ensuring that the EU rules remain more ambitious including through the implementation of common binary exclusions.(18) The sustainable category should consist of financial products that invest in companies, assets or activities that are sustainable or that pursue or positively contribute to environmental and / or social objectives. This category should capture financial products with a high level of ambition in that regard, selecting notably investments based on proven standards and tools, including centred on strategies replicating or managed in reference to an EU Paris-aligned benchmarks in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council, on investing in sustainable economic activities in accordance with Regulation (EU) 2020/852, on investing in instruments issued in accordance with Regulation (EU) 2023/2631 of the European Parliament and of the Council, and on investments in relation to operations benefiting from a Union budgetary guarantee or financial instruments under Union programmes pursuing environmental or social objectives. Accordingly, the exclusions for financial products in this category should extend beyond those for the other two categories and encompass activities where the value chain is associated with fossil fuels, including the expansion of fossil fuels. In particular, the exclusions should include the ones of the transition and ESG basics category, in addition to activities linked to oil fuels, gaseous fuels, electricity generation with a GHG intensity of more than 100 g CO2 e/kWh. Moreover, beyond these exclusions, products falling under the sustainable category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts. This requirement would complement the common binary exclusions and ensure that any other principal adverse impacts on sustainability factors are identified, disclosed, and potentially addressed. It would bring accurate transparency on adverse impacts, therefore allowing end-investors to understand the potential harm of such products, while bringing more legal clarity on the required obligation to financial market participants than the current principle of 'consideration' of principal adverse impact indicators. Indicators should be developed that build on the current principal adverse impact indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1888 and Commission Delegated Regulation (EU) 2023/2772 for voluntary use by financial market participants when complying with the identification and disclosure of principal adverse impacts. However, financial market participants should have the flexibility to disclose these principal adverse impacts using a different approach, such as different indicators or a qualitative explanation of such impacts and actions, if it fits better the nature of the impact identified or addressed. This flexibility on how to identify the impacts should allow them to focus on the impacts which are actually relevant for their products depending on the assets, strategies and objectives pursued. This requirement would align to a certain degree with existing criteria in other international frameworks while ensuring that the EU rules remain more ambitious including through the implementation of common binary exclusions.
32 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
33 Regulation (EU) 2023/2631 of the European Parliament and of the Council of 22 November 2023 on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds (OJ L, 2023/2631, 30.11.2023, ELI: http://data.europa.eu/eli/reg/2023/2631/oj).

Or. en

Amendment 101

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 18

Text proposed by the CommissionAmendment
(18) The sustainable category should consist of financial products that invest in companies, assets or activities that are sustainable or that pursue or positively contribute to environmental and / or social objectives. This category should capture financial products with a high level of ambition in that regard, selecting notably investments based on proven standards and tools, including centred on strategies replicating or managed in reference to an EU Paris-aligned benchmarks in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council32 , on investing in sustainable economic activities in accordance with Regulation (EU) 2020/852, on investing in instruments issued in accordance with Regulation (EU) 2023/2631 of the European Parliament and of the Council33 , and on investments in relation to operations benefiting from a Union budgetary guarantee or financial instruments under Union programmes pursuing environmental or social objectives. Accordingly, the exclusions for financial products in this category should extend beyond those for the other two categories and encompass activities where the value chain is associated with fossil fuels, including the expansion of fossil fuels. In particular, the exclusions should include the ones of the transition and ESG basics category, in addition to activities linked to oil fuels, gaseous fuels, electricity generation with a GHG intensity of more than 100 g CO2 e/kWh. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, beyond these exclusions, products falling under the sustainable category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts. This requirement would complement the common binary exclusions and ensure that any other principal adverse impacts on sustainability factors are identified, disclosed, and potentially addressed. It would bring accurate transparency on adverse impacts, therefore allowing end-investors to understand the potential harm of such products, while bringing more legal clarity on the required obligation to financial market participants than the current principle of ‘consideration’ of principal adverse impact indicators. Indicators should be developed that build on the current principal adverse impact indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1888 and Commission Delegated Regulation (EU) 2023/2772 for voluntary use by financial market participants when complying with the identification and disclosure of principal adverse impacts. However, financial market participants should have the flexibility to disclose these principal adverse impacts using a different approach, such as different indicators or a qualitative explanation of such impacts and actions, if it fits better the nature of the impact identified or addressed. This flexibility on how to identify the impacts should allow them to focus on the impacts which are actually relevant for their products depending on the assets, strategies and objectives pursued. This requirement would align to a certain degree with existing criteria in other international frameworks while ensuring that the EU rules remain more ambitious including through the implementation of common binary exclusions.(18) The sustainable category should consist of financial products that invest in companies, assets or activities that are sustainable or that pursue or positively contribute to environmental and / or social objectives. This category should capture financial products with a high level of ambition in that regard, selecting notably investments based on proven standards and tools, including centred on strategies replicating or managed in reference to an EU Paris-aligned benchmarks in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council32 , on investing in sustainable economic activities in accordance with Regulation (EU) 2020/852, on investing in instruments issued in accordance with Regulation (EU) 2023/2631 of the European Parliament and of the Council33 , and on investments in relation to operations benefiting from a Union budgetary guarantee or financial instruments under Union programmes pursuing environmental or social objectives. Accordingly, the exclusions for financial products in this category should extend beyond those for the other two categories and encompass activities where the value chain is associated with fossil fuels, including the expansion of fossil fuels. In particular, the exclusions should include the ones of the transition and ESG basics category, in addition to activities linked to oil fuels, gaseous fuels, electricity generation with a GHG intensity of more than 100 g CO2 e/kWh. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, beyond these exclusions, products falling under the sustainable category should identify and disclose a mandatory set of principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts. This requirement would complement the common binary exclusions and ensure that any other principal adverse impacts on sustainability factors are identified, disclosed, and potentially addressed, while creating comparability between financial products. It would bring accurate transparency on adverse impacts, therefore allowing end-investors to understand the potential harm and compare different products, while bringing more legal clarity on the required obligation to financial market participants than the current principle of ‘consideration’ of principal adverse impact indicators. Indicators should be developed that build on the current principal adverse impact indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1888 and Commission Delegated Regulation (EU) 2023/2772 for use by financial market participants when complying with the identification and disclosure of principal adverse impacts. Beyond the set of mandatory principle adverse impact indicators, financial market participants should have the flexibility to disclose these principal adverse impacts using a different approach, such as different indicators or a qualitative explanation of such impacts and actions, if it fits better the nature of the impact identified or addressed. This flexibility on how to identify the impacts should allow them to focus on the impacts which are most relevant for their products depending on the assets, strategies and objectives pursued, while retaining a basic measure of comparability. This requirement would align to a certain degree with existing criteria in other international frameworks while ensuring that the EU rules remain more ambitious including through the implementation of common binary exclusions.
32 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).32 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
33 Regulation (EU) 2023/2631 of the European Parliament and of the Council of 22 November 2023 on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds (OJ L, 2023/2631, 30.11.2023, ELI: http://data.europa.eu/eli/reg/2023/2631/oj).33 Regulation (EU) 2023/2631 of the European Parliament and of the Council of 22 November 2023 on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds (OJ L, 2023/2631, 30.11.2023, ELI: http://data.europa.eu/eli/reg/2023/2631/oj).

Or. en

Amendment 102

Angelika Winzig

Proposal for a regulation

Recital 18

Text proposed by the CommissionAmendment
(18) The sustainable category should consist of financial products that invest in companies, assets or activities that are sustainable or that pursue or positively contribute to environmental and / or social objectives. This category should capture financial products with a high level of ambition in that regard, selecting notably investments based on proven standards and tools, including centred on strategies replicating or managed in reference to an EU Paris-aligned benchmarks in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council32 , on investing in sustainable economic activities in accordance with Regulation (EU) 2020/852, on investing in instruments issued in accordance with Regulation (EU) 2023/2631 of the European Parliament and of the Council33 , and on investments in relation to operations benefiting from a Union budgetary guarantee or financial instruments under Union programmes pursuing environmental or social objectives. Accordingly, the exclusions for financial products in this category should extend beyond those for the other two categories and encompass activities where the value chain is associated with fossil fuels, including the expansion of fossil fuels. In particular, the exclusions should include the ones of the transition and ESG basics category, in addition to activities linked to oil fuels, gaseous fuels, electricity generation with a GHG intensity of more than 100 g CO2 e/kWh. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, beyond these exclusions, products falling under the sustainable category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts. This requirement would complement the common binary exclusions and ensure that any other principal adverse impacts on sustainability factors are identified, disclosed, and potentially addressed. It would bring accurate transparency on adverse impacts, therefore allowing end-investors to understand the potential harm of such products, while bringing more legal clarity on the required obligation to financial market participants than the current principle of ‘consideration’ of principal adverse impact indicators. Indicators should be developed that build on the current principal adverse impact indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1888 and Commission Delegated Regulation (EU) 2023/2772 for voluntary use by financial market participants when complying with the identification and disclosure of principal adverse impacts. However, financial market participants should have the flexibility to disclose these principal adverse impacts using a different approach, such as different indicators or a qualitative explanation of such impacts and actions, if it fits better the nature of the impact identified or addressed. This flexibility on how to identify the impacts should allow them to focus on the impacts which are actually relevant for their products depending on the assets, strategies and objectives pursued. This requirement would align to a certain degree with existing criteria in other international frameworks while ensuring that the EU rules remain more ambitious including through the implementation of common binary exclusions.(18) The sustainable category should consist of financial products that invest in companies, assets or activities that are sustainable or that pursue or positively contribute to environmental and / or social objectives. This category should capture financial products with a high level of ambition in that regard, selecting notably investments based on proven standards and tools, including centred on strategies replicating or managed in reference to an EU Paris-aligned benchmarks in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council32 , on investing in sustainable economic activities in accordance with Regulation (EU) 2020/852, on investing in instruments issued in accordance with Regulation (EU) 2023/2631 of the European Parliament and of the Council33 , and on investments in relation to operations benefiting from a Union budgetary guarantee or financial instruments under Union programmes pursuing environmental or social objectives. Accordingly, the exclusions for financial products in this category should extend beyond those for the other two categories and encompass activities where the value chain is associated with fossil fuels, including the expansion of fossil fuels. In particular, the exclusions should include the ones of the transition and ESG integration category, in addition to activities linked to oil fuels, gaseous fuels, electricity generation with a GHG intensity of more than 100 g CO2 e/kWh. This category should also exclude companies developing new projects linked to oil or gaseous fuels, and companies developing new projects, or without a plan to phase-out from, hard coal or lignite for power generation. Moreover, beyond these exclusions, products falling under the sustainable category should identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts. This requirement would complement the common binary exclusions and ensure that any other principal adverse impacts on sustainability factors are identified, disclosed, and potentially addressed. It would bring accurate transparency on adverse impacts, therefore allowing end-investors to understand the potential harm of such products, while bringing more legal clarity on the required obligation to financial market participants than the current principle of ‘consideration’ of principal adverse impact indicators. Indicators should be developed that build on the current principal adverse impact indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1888 and Commission Delegated Regulation (EU) 2023/2772 for voluntary use by financial market participants when complying with the identification and disclosure of principal adverse impacts. However, financial market participants should have the flexibility to disclose these principal adverse impacts using a different approach, such as different indicators or a qualitative explanation of such impacts and actions, if it fits better the nature of the impact identified or addressed. This flexibility on how to identify the impacts should allow them to focus on the impacts which are actually relevant for their products depending on the assets, strategies and objectives pursued. This requirement would align to a certain degree with existing criteria in other international frameworks while ensuring that the EU rules remain more ambitious including through the implementation of common binary exclusions.
32 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).32 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1011/oj).
33 Regulation (EU) 2023/2631 of the European Parliament and of the Council of 22 November 2023 on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds (OJ L, 2023/2631, 30.11.2023, ELI: http://data.europa.eu/eli/reg/2023/2631/oj).33 Regulation (EU) 2023/2631 of the European Parliament and of the Council of 22 November 2023 on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds (OJ L, 2023/2631, 30.11.2023, ELI: http://data.europa.eu/eli/reg/2023/2631/oj).

Or. en

Justification

Renaming the category from 'ESG Basics' to 'ESG Integration' replaces a commercially unviable and potentially derogatory label with the globally established industry standard term for this practice. This change ensures that the category accurately reflects the professional, systematic incorporation of sustainability risks into traditional financial analysis without creating unintended reputational disadvantages for product manufacturers.

Amendment 103

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 19

Text proposed by the CommissionAmendment
(19) To encourage the use of well-established EU standards, the sustainable and transition category should provide for appropriate treatment and legal certainty for products relying on the EU Taxonomy and the EU Climate Benchmarks. Products replicating or managed in reference to an EU Paris-aligned benchmark should be considered as products qualifying under the sustainable and transition category. Similarly, products replicating or managed in reference to an EU Climate Transition benchmark should be considered as products qualifying under the transition category. In addition, products with a proportion of Taxonomy-aligned investment equal or higher than 15% should be considered products complying with the contribution criteria of the sustainable and transition category. The latter would still need to apply the exclusions mandated under the category they wish to comply with on the portion of the portfolio that is not aligned with the EU Taxonomy. Based on the opinion of the Platform for Sustainable Finance, the 15% threshold provides for sufficient incentive for products to aim for an ambition portion of investment in Taxonomy-aligned economic activities while being aligned with the current state of the market. More specifically, this threshold should be attainable by about half of the current investment funds disclosing under Article 9 of Regulation (EU) 2019/2088. The threshold should be subject to review 36 months after the date of application to continue to align it with the state of the broader economy and reflect any development under the EU Taxonomy in order to ensure it provides the right incentive. These provisions aim at simplifying the implementation of the categories, enhancing the coherence of the EU sustainable finance framework, and encouraging the use of these EU labels and standards by providing certainty to their users.(19) To encourage the use of well-established EU standards, the sustainable and transition category should provide for appropriate treatment and legal certainty for products relying on the EU Taxonomy and the EU Climate Benchmarks. Products replicating or managed in reference to an EU Paris-aligned benchmark should be considered as products qualifying under the sustainable and transition category. Similarly, products replicating or managed in reference to an EU Climate Transition benchmark should be considered as products qualifying under the transition category. In addition, products with a proportion of Taxonomy-aligned investment equal or higher than 10% should be considered products complying with the contribution criteria of the sustainable and transition category. The latter would still need to apply the exclusions mandated under the category they wish to comply with on the portion of the portfolio that is not aligned with the EU Taxonomy. A threshold of 10% reflects the actual distribution of Taxonomy-alignment rates across financial products currently distributed in the Union. The constraint on achieving higher alignment rates is structural rather than a reflection of insufficient ambition: non-Union issuers bear no obligation to report against the EU Taxonomy, the Omnibus simplification package has reduced the scope of the Corporate Sustainability Reporting Directive, and diversified mandates with global geographic exposure, sovereign debt holdings, or small- and mid-cap issuer concentration face inherent data limitations that no regulatory calibration of the threshold can resolve. A 10% threshold is sufficiently ambitious to incentivise Taxonomy use whilst remaining attainable for a meaningful share of the market across asset classes and geographic exposures. The threshold should be subject to review 36 months after the date of application to continue to align it with the state of the broader economy and reflect any development under the EU Taxonomy in order to ensure it provides the right incentive. Any upward adjustment of the threshold following such review should be grounded in publicly available data on actual Taxonomy-alignment rates achieved by financial products distributed across the Union, broken down by asset class and geographic exposure. These provisions aim at simplifying the implementation of the categories, enhancing the coherence of the EU sustainable finance framework, and encouraging the use of these EU labels and standards by providing certainty to their users.

Or. en

Justification

Market data shows the overwhelming majority of European funds report Taxonomy alignment below 10%. Given a reduced CSRD scope and a lack of data for non-EU issuers, a 10% threshold is already ambitious.

Amendment 104

Luděk Niedermayer

Proposal for a regulation

Recital 19

Text proposed by the CommissionAmendment
(19) To encourage the use of well-established EU standards, the sustainable and transition category should provide for appropriate treatment and legal certainty for products relying on the EU Taxonomy and the EU Climate Benchmarks. Products replicating or managed in reference to an EU Paris-aligned benchmark should be considered as products qualifying under the sustainable and transition category. Similarly, products replicating or managed in reference to an EU Climate Transition benchmark should be considered as products qualifying under the transition category. In addition, products with a proportion of Taxonomy-aligned investment equal or higher than 15% should be considered products complying with the contribution criteria of the sustainable and transition category. The latter would still need to apply the exclusions mandated under the category they wish to comply with on the portion of the portfolio that is not aligned with the EU Taxonomy. Based on the opinion of the Platform for Sustainable Finance, the 15% threshold provides for sufficient incentive for products to aim for an ambition portion of investment in Taxonomy-aligned economic activities while being aligned with the current state of the market. More specifically, this threshold should be attainable by about half of the current investment funds disclosing under Article 9 of Regulation (EU) 2019/2088. The threshold should be subject to review 36 months after the date of application to continue to align it with the state of the broader economy and reflect any development under the EU Taxonomy in order to ensure it provides the right incentive. These provisions aim at simplifying the implementation of the categories, enhancing the coherence of the EU sustainable finance framework, and encouraging the use of these EU labels and standards by providing certainty to their users.(19) To encourage the use of well-established EU standards, the sustainable and transition category should provide for appropriate treatment and legal certainty for products relying on the EU Taxonomy and the EU Climate Benchmarks. Products replicating or managed in reference to an EU Paris-aligned benchmark should be considered as products qualifying under the sustainable and transition category. Similarly, products replicating or managed in reference to an EU Climate Transition benchmark should be considered as products qualifying under the transition category. In addition, products with a proportion of Taxonomy-aligned investment equal or higher than 15% should be considered products complying with the contribution criteria of the sustainable and transition category. For the transition category, products that do not reach the 15% share of Taxonomy-aligned investments should nevertheless be encouraged to allocate part of their portfolio to Taxonomy-aligned economic activities. For that purpose, each percentage point of such investments should count as four percentage points when assessing compliance with the minimum proportion of investments required for that category. The latter would still need to apply the exclusions mandated under the category they wish to comply with on the portion of the portfolio that is not aligned with the EU Taxonomy. Based on the opinion of the Platform for Sustainable Finance, the 15% threshold provides for sufficient incentive for products to aim for an ambition portion of investment in Taxonomy-aligned economic activities while being aligned with the current state of the market. More specifically, this threshold should be attainable by about half of the current investment funds disclosing under Article 9 of Regulation (EU) 2019/2088. The threshold should be subject to review 36 months after the date of application to continue to align it with the state of the broader economy and reflect any development under the EU Taxonomy in order to ensure it provides the right incentive. These provisions aim at simplifying the implementation of the categories, enhancing the coherence of the EU sustainable finance framework, and encouraging the use of these EU labels and standards by providing certainty to their users.

Or. en

Amendment 105

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 19

Text proposed by the CommissionAmendment
(19) To encourage the use of well-established EU standards, the sustainable and transition category should provide for appropriate treatment and legal certainty for products relying on the EU Taxonomy and the EU Climate Benchmarks. Products replicating or managed in reference to an EU Paris-aligned benchmark should be considered as products qualifying under the sustainable and transition category. Similarly, products replicating or managed in reference to an EU Climate Transition benchmark should be considered as products qualifying under the transition category. In addition, products with a proportion of Taxonomy-aligned investment equal or higher than 15% should be considered products complying with the contribution criteria of the sustainable and transition category. The latter would still need to apply the exclusions mandated under the category they wish to comply with on the portion of the portfolio that is not aligned with the EU Taxonomy. Based on the opinion of the Platform for Sustainable Finance, the 15% threshold provides for sufficient incentive for products to aim for an ambition portion of investment in Taxonomy-aligned economic activities while being aligned with the current state of the market. More specifically, this threshold should be attainable by about half of the current investment funds disclosing under Article 9 of Regulation (EU) 2019/2088. The threshold should be subject to review 36 months after the date of application to continue to align it with the state of the broader economy and reflect any development under the EU Taxonomy in order to ensure it provides the right incentive. These provisions aim at simplifying the implementation of the categories, enhancing the coherence of the EU sustainable finance framework, and encouraging the use of these EU labels and standards by providing certainty to their users.(19) To encourage the use of well-established EU standards, the sustainable and transition category should provide for appropriate treatment and legal certainty for products relying on the EU Taxonomy and the EU Climate Benchmarks. In addition, products with a proportion of Taxonomy-aligned investment equal or higher than 25% should be considered products complying with the contribution criteria of the sustainable and transition category. The latter would still need to apply the exclusions mandated under the category they wish to comply with on the portion of the portfolio that is not aligned with the EU Taxonomy. Based on the opinion of the Platform for Sustainable Finance, the 25% threshold provides for sufficient incentive for products to aim for an ambition portion of investment in Taxonomy-aligned economic activities while being aligned with the current state of the market. More specifically, this threshold should be attainable by slightly less than half of the current investment funds disclosing under Article 9 of Regulation (EU) 2019/2088. The threshold should be subject to review 36 months after the date of application to continue to align it with the state of the broader economy and reflect any development under the EU Taxonomy in order to ensure it provides the right incentive. These provisions aim at simplifying the implementation of the categories, enhancing the coherence of the EU sustainable finance framework, and encouraging the use of these EU labels and standards by providing certainty to their users.

Or. en

Amendment 106

Fernando Navarrete Rojas

Proposal for a regulation

Recital 19

Text proposed by the CommissionAmendment
(19) To encourage the use of well-established EU standards, the sustainable and transition category should provide for appropriate treatment and legal certainty for products relying on the EU Taxonomy and the EU Climate Benchmarks. Products replicating or managed in reference to an EU Paris-aligned benchmark should be considered as products qualifying under the sustainable and transition category. Similarly, products replicating or managed in reference to an EU Climate Transition benchmark should be considered as products qualifying under the transition category. In addition, products with a proportion of Taxonomy-aligned investment equal or higher than 15% should be considered products complying with the contribution criteria of the sustainable and transition category. The latter would still need to apply the exclusions mandated under the category they wish to comply with on the portion of the portfolio that is not aligned with the EU Taxonomy. Based on the opinion of the Platform for Sustainable Finance, the 15% threshold provides for sufficient incentive for products to aim for an ambition portion of investment in Taxonomy-aligned economic activities while being aligned with the current state of the market. More specifically, this threshold should be attainable by about half of the current investment funds disclosing under Article 9 of Regulation (EU) 2019/2088. The threshold should be subject to review 36 months after the date of application to continue to align it with the state of the broader economy and reflect any development under the EU Taxonomy in order to ensure it provides the right incentive. These provisions aim at simplifying the implementation of the categories, enhancing the coherence of the EU sustainable finance framework, and encouraging the use of these EU labels and standards by providing certainty to their users.(19) To encourage the use of well-established EU standards, the sustainable and transition category should provide for appropriate treatment and legal certainty for products relying on the EU Taxonomy and the EU Climate Benchmarks. Products replicating or managed in reference to an EU Paris-aligned benchmark should be considered as products qualifying under the sustainable and transition category. Similarly, products replicating or managed in reference to an EU Climate Transition benchmark should be considered as products qualifying under the transition category. In addition, products with a proportion of Taxonomy-aligned investment equal or higher than 5% should be considered products complying with the contribution criteria of the sustainable and transition category. The latter would still need to apply the exclusions mandated under the category they wish to comply with on the portion of the portfolio that is not aligned with the EU Taxonomy. Based on the opinion of the Platform for Sustainable Finance, the 5% threshold provides for sufficient incentive for products to aim for an ambition portion of investment in Taxonomy-aligned economic activities while being aligned with the current state of the market. More specifically, this threshold should be attainable by about half of the current investment funds disclosing under Article 9 of Regulation (EU) 2019/2088. The threshold should be subject to review 36 months after the date of application to continue to align it with the state of the broader economy and reflect any development under the EU Taxonomy in order to ensure it provides the right incentive. These provisions aim at simplifying the implementation of the categories, enhancing the coherence of the EU sustainable finance framework, and encouraging the use of these EU labels and standards by providing certainty to their users.

Or. en

Amendment 107

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 21

Text proposed by the CommissionAmendment
(21) Pre-contractual and periodic disclosures for financial products that are categorised as sustainability-related product should contain all relevant information about the objective, strategy, and investment approaches to comply with the 70% requirement, chosen indicators for measuring performance, compliance with applicable exclusions, and relevant data sources used to inform the design, compliance and measurement of the criteria applicable to the financial product. Financial products falling under the sustainable and transition category that pursue an environmental objective should disclose whether and the extent to which they use the EU Taxonomy as one of their investment approaches, to meet the 70% requirement. This disclosure requirement on the use of the EU Taxonomy will enhance comparability across financial products with environmental objectives. In addition, disclosures on any ESG ratings included in market documentations of sustainability-related products should be included in websites disclosures, as per requirements under Regulation (EU) 2024/3005. These disclosures should allow end-investors to understand the specific characteristics of each sustainability-related financial products, compare them and understand whether they fit their sustainability preferences, and facilitate the provision of financial and insurance advice.(21) Pre-contractual and periodic disclosures for financial products that are categorised as sustainability-related product should contain all relevant information about the objective, strategy, and investment approaches to comply with the 80% requirement, chosen indicators for measuring performance, compliance with applicable exclusions, and relevant data sources used to inform the design, compliance and measurement of the criteria applicable to the financial product. Financial products falling under the sustainable and transition category that pursue an environmental objective should disclose the extent to which they use the EU Taxonomy as one of their investment approaches, to meet the 80% requirement. This disclosure requirement on the use of the EU Taxonomy will enhance comparability across financial products with environmental objectives. In addition, disclosures on any ESG ratings included in market documentations of sustainability-related products should be included in websites disclosures, as per requirements under Regulation (EU) 2024/3005. These disclosures should allow end-investors to understand the specific characteristics of each sustainability-related financial products, compare them and understand whether they fit their sustainability preferences, and facilitate the provision of financial and insurance advice.

Or. en

Amendment 108

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 21 a (new)

Text proposed by the CommissionAmendment
(21a) The simplification of pre-contractual sustainability disclosures, while necessary, is not in itself sufficient to ensure understanding by retail investors. Experience with key information documents (KIDs) under PRIIPs Regulation (EU) No 1286/2014 shows that a standardised text-based format, while useful, does not ensure immediate understanding. By contrast, the Union energy label, introduced by Regulation (EU) 2017/1369, has demonstrated, with well-established scientific evidence, that colour-coded visual systems significantly improve consumers’ ability to compare products and make informed choices. It is, therefore, appropriate to introduce, on the first page of the pre-contractual disclosures referred to in Article 19b, a standardised visual display – uniform for all financial products – that enables investors to immediately identify a product's category, actual degree of compliance with sustainability objectives and main characteristics in terms of adverse impact. For financial products not categorised under Articles 7, 8 or 9, the same space should contain a clear and prominent statement that the product does not belong to any category of sustainability-related financial products. ESMA should be tasked with setting the standardised graphic format through implementing technical standards.

Or. it

Amendment 109

Fernando Navarrete Rojas

Proposal for a regulation

Recital 21 a (new)

Text proposed by the CommissionAmendment
(21a) Financial market participants should not be prevented from providing voluntary transparency on the integration of sustainability factors for financial products that do not meet the thresholds to be categorised as sustainability-related financial products under Articles 7, 8 or 9. However, strict quantitative limits on the volume of such information or prohibiting it from being included proportionately in the pre-contractual documents, risk unduly penalising financial products that make significant and legitimate investments in sustainability but fall short of the categorisation thresholds. Subjecting products that demonstrate a substantial, albeit insufficient, alignment with the categorisation thresholds to the exact same strict disclosure limitations as products with only a marginal share of such investments creates a disproportionate 'cliff-edge' effect. Treating products with vastly different proportions of sustainable or transition investments identically acts as a severe disincentive for financial market participants to progressively improve the sustainability composition of their portfolios over time. To avoid this disincentive and the risk of 'greenhushing', while simultaneously preventing 'greenwashing', a principles-based approach should be adopted. The disclosure of sustainability factors for non-categorised products should accurately reflect the true composition of the portfolio.

Or. en

Amendment 110

Fernando Navarrete Rojas

Proposal for a regulation

Recital 22

Text proposed by the CommissionAmendment
[...]deleted

Or. en

Amendment 111

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 22

Text proposed by the CommissionAmendment
(22) There are currently no comprehensive metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be excluded from counting towards the contribution of financial products to sustainability or transition related objectives. Without affecting the treatment or inclusion of those debt issuances among investments by financial products in general, investments in such debt issuances should be excluded from qualifying for the numerator of the portion of investment that needs to be reached by financial products that are categorised under the sustainable and transition categories. However, financial market participants should be allowed to include those debt issuances in the numerator of financial products that are categorised under the ESG basics category, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are consistent with the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.(22) There are currently no comprehensive metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be excluded from consideration for both the numerator and the denominator when calculating the relevant thresholds in this regulation.

Or. en

Justification

In the absence of comprehensive sustainability metrics for sovereign debt, including such issuances in the denominator while excluding them from the numerator systematically distorts the threshold calculation against insurance and pension products with prudentially-driven sovereign allocations. Symmetric exclusion from both sides of the ratio ensures a level playing field without prejudging future methodological developments.

Amendment 112

Christophe Gomart

Proposal for a regulation

Recital 22

Text proposed by the CommissionAmendment
(22) There are currently no comprehensive metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be excluded from counting towards the contribution of financial products to sustainability or transition related objectives. Without affecting the treatment or inclusion of those debt issuances among investments by financial products in general, investments in such debt issuances should be excluded from qualifying for the numerator of the portion of investment that needs to be reached by financial products that are categorised under the sustainable and transition categories. However, financial market participants should be allowed to include those debt issuances in the numerator of financial products that are categorised under the ESG basics category, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are consistent with the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.(22) Financial market participants should be allowed to include sovereign, sub-sovereign and supranational debt insurances in the numerator of all categorised financial products, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are consistent with the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.

Or. en

Amendment 113

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 22

Text proposed by the CommissionAmendment
(22) There are currently no comprehensive metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be excluded from counting towards the contribution of financial products to sustainability or transition related objectives. Without affecting the treatment or inclusion of those debt issuances among investments by financial products in general, investments in such debt issuances should be excluded from qualifying for the numerator of the portion of investment that needs to be reached by financial products that are categorised under the sustainable and transition categories. However, financial market participants should be allowed to include those debt issuances in the numerator of financial products that are categorised under the ESG basics category, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are consistent with the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.(22) There are currently no comprehensive metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be excluded from counting towards the contribution of financial products to sustainability or transition related objectives. Without affecting the treatment or inclusion of those debt issuances among investments by financial products in general, investments in such debt issuances should be excluded from qualifying for the numerator of the portion of investment that needs to be reached by financial products that are categorised under the sustainable and transition categories. However, financial market participants should be allowed to include those debt issuances in the numerator of financial products that are categorised under the ESG basics category, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are assessed using formalised and documented methodologies, that the basis for that assessment and key assumptions are disclosed, and that those investments do not contradict the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.

Or. en

Amendment 114

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 22

Text proposed by the CommissionAmendment
(22) There are currently no comprehensive metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be excluded from counting towards the contribution of financial products to sustainability or transition related objectives. Without affecting the treatment or inclusion of those debt issuances among investments by financial products in general, investments in such debt issuances should be excluded from qualifying for the numerator of the portion of investment that needs to be reached by financial products that are categorised under the sustainable and transition categories. However, financial market participants should be allowed to include those debt issuances in the numerator of financial products that are categorised under the ESG basics category, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are consistent with the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.(22) There are currently no fully harmonised metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be counted towards the contribution of financial products to sustainability or transition related objectives, or towards the contribution to the integration of sustainability factors pursuant to Article 8, where financial market participants apply sound, documented and appropriate methodologies to assess the sustainability or transition profile of those investments and take into account national transition or sustainability frameworks that have been made public. However, financial market participants should be allowed to include those debt issuances in the numerator of financial products that are categorised under the sustainability, transition and ESG basics categories, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are consistent with the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.

Or. it

Amendment 115

Angelika Winzig

Proposal for a regulation

Recital 22

Text proposed by the CommissionAmendment
(22) There are currently no comprehensive metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be excluded from counting towards the contribution of financial products to sustainability or transition related objectives. Without affecting the treatment or inclusion of those debt issuances among investments by financial products in general, investments in such debt issuances should be excluded from qualifying for the numerator of the portion of investment that needs to be reached by financial products that are categorised under the sustainable and transition categories. However, financial market participants should be allowed to include those debt issuances in the numerator of financial products that are categorised under the ESG basics category, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are consistent with the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.(22) There are currently no comprehensive metrics for gauging the sustainability of general-purpose sovereign, sub-sovereign and supranational debt issuances. Investments in such debt issuances should therefore be excluded from counting towards the contribution of financial products to sustainability or transition related objectives. Without affecting the treatment or inclusion of those debt issuances among investments by financial products in general, investments in such debt issuances should be excluded from qualifying for the numerator of the portion of investment that needs to be reached by financial products that are categorised under the sustainable and transition categories. However, financial market participants should be allowed to include those debt issuances in the numerator of financial products that are categorised under the ESG integration category, using available methodologies that are appropriate to assess the sustainability of those investments for that purpose. Further, the exclusions regarding investments which financial products that are categorised as sustainability-related financial products cannot make, apply to companies, and not to sovereigns, sub-sovereigns and supra-nationals. Those exclusions therefore do not restrict investments in debt issuances by sovereigns, sub-sovereigns and supra-nationals, which can thus feature in the denominator of those financial products, including notably debt issuances by Union Member States, Union-level bodies and other public sector bodies not subject to any applicable Union-level financial sanctions. In contrast, investments in financial instruments issued by sovereigns, sub-sovereigns and supra-nationals, where the use of proceeds is known, where those instruments support specific sustainability aims, and provided that those financial instruments do not directly or indirectly fund activities that are excluded from investments by financial products that are categorised as sustainability-related financial products, can be included in the numerator of all categorised financial products. This balanced approach should allow sustainability-related financial products to continue to fund public projects and activities related to sustainability, while providing safeguards to potential greenwashing risks. Financial market participants should ensure that investments in public sector debt by categorised financial products are consistent with the stated sustainability-related objective or strategy of those products to avoid greenwashing risks and be aligned with end-investors’ expectations.

Or. en

Justification

Renaming the category from 'ESG Basics' to 'ESG Integration' replaces a commercially unviable and potentially derogatory label with the globally established industry standard term for this practice. This change ensures that the category accurately reflects the professional, systematic incorporation of sustainability risks into traditional financial analysis without creating unintended reputational disadvantages for product manufacturers.

Amendment 116

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 23

Text proposed by the CommissionAmendment
(23) The creation of categories for sustainability-related financial products requires provisions that determine how products that are exposed to categorised products should assess their eligibility to a category and if they do not qualify for a category, how such non-categorised financial products which invest in categorised financial products should disclose information about those investments. In order to assess the eligibility to a category, financial market participants should be able to rely on the information disclosed regarding categorised financial products and combine it with the information on their other investments. In cases where a financial market participant uses the services of an entity regulated to provide portfolio management services, the financial market participant should be able to rely on the information provided by this entity which can be mandated to invest in accordance with the criteria for categorised products by its client. In case where investments of those products in categorised products reach the 70% threshold for their portfolio, and where compliance with other criteria, notably exclusion criteria, is also ensured, these products could be considered to qualify as categorised products themselves. This assessment should build on information on the underlying categorised products (e.g. either the minimum investment required for categorised products under this Regulation, or the actual investment if available) and information disclosed by portfolio managers. Provided the appropriate exclusions are met in each case, only products that meet the 70% threshold by investing solely in sustainable products could be considered sustainable, while those investing across categories would fall either within the transition (if mixing sustainable or transition products) or ESG basics (if mixing products from any of the three). For financial products that do not qualify for a category but invest in categorised financial products, in order to ensure comparability, disclosures should include how much these financial products have invested in financial products that are categorised as sustainability-related financial products, as well as in portfolios managed for clients on a discretionary basis in accordance with the criteria for categorised products, and how much in non-categorised products. For this purpose, financial market participants should be able to rely on the information disclosed regarding categorised financial products as well as the information disclosed by the authorised entity in change or providing the service of portfolio management. That should help financial market participants managing, manufacturing or making available such products inform their clients on the sustainability-related elements of these products in a more harmonised way, while allowing them to rely on the information provided for the underlying categorised products and without requiring them to separately verify this information. Those non-categorised products should however not be able to use sustainability-related terms in their names, that are reserved for categorised products, but should be able to include sustainability-related claims in their marketing communications, provided they are clear, fair and not misleading, and accurately reflect the information they disclose on the relative shares of investments in categorised products and in other assets.(23) The creation of categories for sustainability-related financial products requires provisions that determine how products that are exposed to categorised products should assess their eligibility to a category and if they do not qualify for a category, how such non-categorised financial products which invest in categorised financial products should disclose information about those investments. In order to assess the eligibility to a category, an investor should be able to rely on the information disclosed regarding categorised financial products and combine it with the information on their other investments. In cases where an investor uses the services of an entity regulated to provide portfolio management services, the financial market participant should be able to rely on the information provided by this entity which can be mandated to invest in accordance with the criteria for categorised products by its client. In case where investments of those products in categorised products reach the 70% threshold for their portfolio, and where compliance with other criteria, notably exclusion criteria, is also ensured, these products could be considered to qualify as categorised products themselves. This assessment should build on information on the underlying categorised products (e.g. either the minimum investment required for categorised products under this Regulation, or the actual investment if available) and information disclosed by portfolio managers. Provided the appropriate exclusions are met in each case, only products that meet the 70% threshold by investing solely in sustainable products could be considered sustainable, while those investing across categories would fall either within the transition (if mixing sustainable or transition products) or ESG basics (if mixing products from any of the three). For financial products that do not qualify for a category but invest in categorised financial products, in order to ensure comparability, disclosures should include how much these financial products have invested in financial products that are categorised as sustainability-related financial products, as well as in portfolios managed for clients on a discretionary basis in accordance with the criteria for categorised products, and how much in non-categorised products. For this purpose, financial market participants should be able to rely on the information disclosed regarding categorised financial products as well as the information disclosed by the authorised entity in change or providing the service of portfolio management. That should help financial market participants managing, manufacturing or making available such products inform their clients on the sustainability-related elements of these products in a more harmonised way, while allowing them to rely on the information provided for the underlying categorised products and without requiring them to separately verify this information. Those non-categorised products should however not be able to use sustainability-related terms in their names, that are reserved for categorised products, but should be able to include sustainability-related claims in their marketing communications, provided they are clear, fair and not misleading, and accurately reflect the information they disclose on the relative shares of investments in categorised products and in other assets.

Or. it

Amendment 117

Angelika Winzig

Proposal for a regulation

Recital 23

Text proposed by the CommissionAmendment
(23) The creation of categories for sustainability-related financial products requires provisions that determine how products that are exposed to categorised products should assess their eligibility to a category and if they do not qualify for a category, how such non-categorised financial products which invest in categorised financial products should disclose information about those investments. In order to assess the eligibility to a category, financial market participants should be able to rely on the information disclosed regarding categorised financial products and combine it with the information on their other investments. In cases where a financial market participant uses the services of an entity regulated to provide portfolio management services, the financial market participant should be able to rely on the information provided by this entity which can be mandated to invest in accordance with the criteria for categorised products by its client. In case where investments of those products in categorised products reach the 70% threshold for their portfolio, and where compliance with other criteria, notably exclusion criteria, is also ensured, these products could be considered to qualify as categorised products themselves. This assessment should build on information on the underlying categorised products (e.g. either the minimum investment required for categorised products under this Regulation, or the actual investment if available) and information disclosed by portfolio managers. Provided the appropriate exclusions are met in each case, only products that meet the 70% threshold by investing solely in sustainable products could be considered sustainable, while those investing across categories would fall either within the transition (if mixing sustainable or transition products) or ESG basics (if mixing products from any of the three). For financial products that do not qualify for a category but invest in categorised financial products, in order to ensure comparability, disclosures should include how much these financial products have invested in financial products that are categorised as sustainability-related financial products, as well as in portfolios managed for clients on a discretionary basis in accordance with the criteria for categorised products, and how much in non-categorised products. For this purpose, financial market participants should be able to rely on the information disclosed regarding categorised financial products as well as the information disclosed by the authorised entity in change or providing the service of portfolio management. That should help financial market participants managing, manufacturing or making available such products inform their clients on the sustainability-related elements of these products in a more harmonised way, while allowing them to rely on the information provided for the underlying categorised products and without requiring them to separately verify this information. Those non-categorised products should however not be able to use sustainability-related terms in their names, that are reserved for categorised products, but should be able to include sustainability-related claims in their marketing communications, provided they are clear, fair and not misleading, and accurately reflect the information they disclose on the relative shares of investments in categorised products and in other assets.(23) The creation of categories for sustainability-related financial products requires provisions that determine how products that are exposed to categorised products should assess their eligibility to a category and if they do not qualify for a category, how such non-categorised financial products which invest in categorised financial products should disclose information about those investments. In order to assess the eligibility to a category, financial market participants should be able to rely on the information disclosed regarding categorised financial products and combine it with the information on their other investments. In cases where a financial market participant uses the services of an entity regulated to provide portfolio management services, the financial market participant should be able to rely on the information provided by this entity which can be mandated to invest in accordance with the criteria for categorised products by its client. In case where investments of those products in categorised products reach the 70% threshold for their portfolio, and where compliance with other criteria, notably exclusion criteria, is also ensured, these products could be considered to qualify as categorised products themselves. This assessment should build on information on the underlying categorised products (e.g. either the minimum investment required for categorised products under this Regulation, or the actual investment if available) and information disclosed by portfolio managers. Provided the appropriate exclusions are met in each case, only products that meet the 70% threshold by investing solely in sustainable products could be considered sustainable, while those investing across categories would fall either within the transition (if mixing sustainable or transition products) or ESG integration (if mixing products from any of the three). For financial products that do not qualify for a category but invest in categorised financial products, in order to ensure comparability, disclosures should include how much these financial products have invested in financial products that are categorised as sustainability-related financial products, as well as in portfolios managed for clients on a discretionary basis in accordance with the criteria for categorised products, and how much in non-categorised products. For this purpose, financial market participants should be able to rely on the information disclosed regarding categorised financial products as well as the information disclosed by the authorised entity in change or providing the service of portfolio management. That should help financial market participants managing, manufacturing or making available such products inform their clients on the sustainability-related elements of these products in a more harmonised way, while allowing them to rely on the information provided for the underlying categorised products and without requiring them to separately verify this information. Those non-categorised products should however not be able to use sustainability-related terms in their names, that are reserved for categorised products, but should be able to include sustainability-related claims in their marketing communications, provided they are clear, fair and not misleading, and accurately reflect the information they disclose on the relative shares of investments in categorised products and in other assets.

Or. en

Justification

Renaming the category from 'ESG Basics' to 'ESG Integration' replaces a commercially unviable and potentially derogatory label with the globally established industry standard term for this practice. This change ensures that the category accurately reflects the professional, systematic incorporation of sustainability risks into traditional financial analysis without creating unintended reputational disadvantages for product manufacturers.

Amendment 118

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 24

Text proposed by the CommissionAmendment
(24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants, without however imposing new requirements on third party sustainability data providers. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request.(24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. These gaps have been exacerbated by the limited scope of the Union’s corporate sustainability reporting regime, resulting in financial market participants having to rely on a limited group of mostly non-EU providers of financial data, creating a dependency on third-country suppliers. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request. Additionally, the Commission should consider the increased role of estimates in the European sustainable finance framework as a result of this regulation, in particular in light of the potential effects on the of data dependence on the strategic autonomy of the EU sustainable finance framework, when carrying out the review under Article 52 of the Regulation (EU) 2024/3005.

Or. en

Amendment 119

Luděk Niedermayer

Proposal for a regulation

Recital 24

Text proposed by the CommissionAmendment
(24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants, without however imposing new requirements on third party sustainability data providers. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request.(24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants, without however imposing new requirements on third party sustainability data providers. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request. The Commission, the European Supervisory Authorities and competent authorities should be able, within their respective mandates, to issue guidance or recommendations to improve the transparency, reliability and comparability of data sources and estimate methodologies used for the purposes of this Regulation, while avoiding the disclosure of confidential information, trade secrets or proprietary methodologies.

Or. en

Amendment 120

Christophe Gomart, François-Xavier Bellamy

Proposal for a regulation

Recital 24

Text proposed by the CommissionAmendment
(24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants, without however imposing new requirements on third party sustainability data providers. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request.(24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates. Regulation (EU) 2024/3005 should be re-assessed in 2029 and extended to include ESG data products provided by ESG data products providers operating in the Union in order to ensure the transparency, integrity and independence in the provision of ESG data.

Or. en

Justification

This amendment aims to introduce minimum transparency and methodological requirements for ESG data providers, as they have a crucial role in enabling financial market participants to comply with the obligations set out in this Regulation.

Amendment 121

Pascal Canfin, Stéphanie Yon-Courtin

Proposal for a regulation

Recital 24

Text proposed by the CommissionAmendment
(24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants, without however imposing new requirements on third party sustainability data providers. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request.(24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request.

Or. en

Amendment 122

Pascal Canfin, Stéphanie Yon-Courtin

Proposal for a regulation

Recital 24 a (new)

Text proposed by the CommissionAmendment
(24a) One of the consequences of recent legislative development has been a reduction in the number of data available to financial market participants, therefore increasing their dependence on data providers. The introduction of measures to enhance transparency and information-sharing between financial market participants, data providers and national competent authorities in charge of their supervision is necessary to ensure that the responsibility on the estimates and their underlying methodologies is shared between these different actors.

Or. en

Amendment 123

Martin Günther

Proposal for a regulation

Recital 25 a (new)

Text proposed by the CommissionAmendment
(25a) To avoid confusion among customers, it should be made clear that the categories of financial products under Regulation (EU) 2019/2088 are not labels, since they do not require mandatory certification by a registered independent third party.

Or. en

Amendment 124

Sirpa Pietikäinen

Proposal for a regulation

Recital 27

Text proposed by the CommissionAmendment
(27) The power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to allow for the specification of the conditions for investments to contribute to given transition-related or sustainability-related objectives or to integrate sustainability factors for the categorisation of financial products as sustainability-related products, and disclosure templates for such financial products. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including with the European Supervisory Authorities established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council34 , Regulation (EU) No 1094/2010 of the European Parliament and of the Council35 , and Regulation (EU) No 1095/2010 of the European Parliament and of the Council36 , and with the Member States Expert Group on sustainable finance, where appropriate. The European Supervisory Authorities should also support the Commission in conducting appropriate testing of consumers and investors to inform how product distributors best identify the products that match clients’ sustainability preferences under Commission Delegated Regulation (EU) 2017/565, Commission Delegated Directive (EU) 2017/593, Commission Delegated Regulations (EU) 2017/2358 and (EU) 2017/2359, based on the categorisation, and ensure that associated investor-facing details are easily understandable in all official languages of the Union. Those consultations should be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making37 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.(27) The power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to allow for the specification of the conditions for investments to contribute to given transition-related or sustainability-related objectives or to integrate sustainability factors for the categorisation of financial products as sustainability-related products, and disclosure templates for such financial products. As a part of the European Commission’s right to review the regulation, the Commission assessment should also contain a section on the most current scientific estimates and model on the different underlying causes and phenomena on sustainability-related events. If in that assessment, it is deemed appropriate to update the definitions, exclusions or targets in Articles 7, 8 or 9, should be modified accordingly. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including with the European Supervisory Authorities established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council34 , Regulation (EU) No 1094/2010 of the European Parliament and of the Council35 , and Regulation (EU) No 1095/2010 of the European Parliament and of the Council36 , and with the Member States Expert Group on sustainable finance, where appropriate. The European Supervisory Authorities should also support the Commission in conducting appropriate testing of consumers and investors to inform how product distributors best identify the products that match clients’ sustainability preferences under Commission Delegated Regulation (EU) 2017/565, Commission Delegated Directive (EU) 2017/593, Commission Delegated Regulations (EU) 2017/2358 and (EU) 2017/2359, based on the categorisation, and ensure that associated investor-facing details are easily understandable in all official languages of the Union. Those consultations should be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making37 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
34 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12, ELI: http://data.europa.eu/eli/reg/2010/1093/oj).34 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12, ELI: http://data.europa.eu/eli/reg/2010/1093/oj).
35 Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48, ELI: http://data.europa.eu/eli/reg/2010/1094/oj).35 Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48, ELI: http://data.europa.eu/eli/reg/2010/1094/oj).
36 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84, ELI: http://data.europa.eu/eli/reg/2010/1095/oj).36 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84, ELI: http://data.europa.eu/eli/reg/2010/1095/oj).
37 Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj).37 Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj).

Or. en

Amendment 125

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Recital 27

Text proposed by the CommissionAmendment
(27) The power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to allow for the specification of the conditions for investments to contribute to given transition-related or sustainability-related objectives or to integrate sustainability factors for the categorisation of financial products as sustainability-related products, and disclosure templates for such financial products. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including with the European Supervisory Authorities established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council34 , Regulation (EU) No 1094/2010 of the European Parliament and of the Council35 , and Regulation (EU) No 1095/2010 of the European Parliament and of the Council36 , and with the Member States Expert Group on sustainable finance, where appropriate. The European Supervisory Authorities should also support the Commission in conducting appropriate testing of consumers and investors to inform how product distributors best identify the products that match clients’ sustainability preferences under Commission Delegated Regulation (EU) 2017/565, Commission Delegated Directive (EU) 2017/593, Commission Delegated Regulations (EU) 2017/2358 and (EU) 2017/2359, based on the categorisation, and ensure that associated investor-facing details are easily understandable in all official languages of the Union. Those consultations should be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making37 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.(27) The power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to allow for the specification of the conditions for investments to contribute to given transition-related or sustainability-related objectives or to integrate sustainability factors for the categorisation of financial products as sustainability-related products, and disclosure templates for such financial products. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including with the European Supervisory Authorities established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council34 , Regulation (EU) No 1094/2010 of the European Parliament and of the Council35 , and Regulation (EU) No 1095/2010 of the European Parliament and of the Council36 , and with the Member States Expert Group on sustainable finance, where appropriate. The European Supervisory Authorities should also support the Commission in conducting appropriate testing of consumers and investors to assess the clarity, comprehensibility and usability of investor-facing disclosures relating to the categorisation of financial products under this Regulation, including ensuring that such disclosures are easily understandable in all official languages of the Union. Those consultations should be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making37 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
34 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12, ELI: http://data.europa.eu/eli/reg/2010/1093/oj).34 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12, ELI: http://data.europa.eu/eli/reg/2010/1093/oj).
35 Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48, ELI: http://data.europa.eu/eli/reg/2010/1094/oj).35 Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48, ELI: http://data.europa.eu/eli/reg/2010/1094/oj).
36 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84, ELI: http://data.europa.eu/eli/reg/2010/1095/oj).36 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84, ELI: http://data.europa.eu/eli/reg/2010/1095/oj).
37 Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj).37 Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj).

Or. en

Amendment 126

Sirpa Pietikäinen

Proposal for a regulation

Recital 27 a (new)

Text proposed by the CommissionAmendment
(27a) The Commission should continue striving for a holistic and integrated approach towards sustainable finance, aiming to bring harmonised and science-based measurement, covering the entire life cycle and value chain, of environmental and social indicators and calculation standards at par with financial equivalents, while genuinely simplifying the implementation for companies through integrated reporting in a single annual report. This requires a parallel development of a centralised digital reporting interface and platform for machine-readable reports, based on the European Single Access Point, to ease both the reporting work of the companies as well as comparing of information by investors. Sustainable finance needs a common methodology to ensure comparability of sustainability indicators within and between different industries. Instead of binary thresholds, the transition and classification of companies as sustainable should be addressed on a scale where companies are able to assess their transition path and steps in a clearer manner: with the best in class formatting the moving targets for progress, and clearly defined first and second materiality risk factors providing the other end of the scale. The companies’ positions on the scale are reported and evaluated against their audited transition plans and their implementation.

Or. en

Amendment 127

Stéphanie Yon-Courtin, Pascal Canfin

Proposal for a regulation

Recital 29 a (new)

Text proposed by the CommissionAmendment
(29a) The review of Regulation (EU) No 1286/2014 under the Retail Investment Strategy package aims to support the Savings and Investments Union's objectives, namely improving access to financial markets, increasing consumer choice and strengthening retail investors' ability to make informed investment decisions. In that context, amendments to sustainability-related disclosures under the SFDR should ensure that consumers receive information that is both comprehensive and easy to understand, while leaving sufficient flexibility for the detailed design and presentation of such information to be developed and validated through consumer and industry testing;

Or. en

Amendment 128

Stéphanie Yon-Courtin, Pascal Canfin

Proposal for a regulation

Recital 29 b (new)

Text proposed by the CommissionAmendment
(29b) Experience with the current framework has shown that excessively lengthy or complex disclosure documents may reduce their effectiveness and discourage retail investors from engaging with the information provided. It is therefore appropriate to ensure that the content and presentation of information in the Key Information Document (KID) remains focused on the information most relevant to retail investors, while preserving consumer protection. To this purpose the revision of Regulation (EU) No 1286/2014 under the Retail Investment Strategy package ensures that the presentation of all PRIIPs KID information should systemically be determined on the basis of evidence gathered through consumer testing. Consumer and industry testing should remain the appropriate vehicle to outline information in the simplest and most comprehensible way to consumers, whether it is through graphs, text, or other formats that facilitate understanding and enable consumers to make well-informed decisions;

Or. en

Amendment 129

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 32

Text proposed by the CommissionAmendment
(32) Financial market participants shall start applying this Regulation 12 months after the date of application of this Regulation for IBIPs, pension products, pension schemes and PEPPs. These products are not subject to the ESMA guidelines on funds names and therefore will require more time to implement the new underlying criteria, especially to implement the exclusions.(32) Financial products that were marketed pursuant to Regulation (EU) 2019/2088 prior to the date of application of this Regulation may carry quantitative sustainability commitments, including minimum shares of sustainable investments and commitments relating to the 'do no significant harm' principle, that were designed around definitions and concepts that this Regulation abolishes. Requiring financial market participants to continue honouring those commitments under Union law after the application date would expose them to obligations under a superseded framework and could prevent appropriate portfolio management in the interests of investors. Financial market participants should therefore be released from such commitments under Union law from the date of application of this Regulation, subject to a proportionate obligation to inform existing investors of the resulting changes. That notification obligation should not require a full reassessment of the product or of the investor's sustainability preferences, and should be capable of being fulfilled through the next periodic report to investors.

Or. en

Amendment 130

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Recital 32 a (new)

Text proposed by the CommissionAmendment
(32a) Given the relevant role of this Regulation under the EU sustainable finance framework, the transition to the revised regime should be clear, predictable and well coordinated, including through close alignment between level 1 and level 2 measures and consistency with Regulation (EU) 2020/852, Regulation (EU) 2016/1011, Directive 2014/65/EU and ESMA guidelines on the denomination of funds using ESG or sustainability-related terms. Where appropriate, transitional measures should be considered in order to alleviate unnecessary operational burdens without undermining the objectives of this Regulation. Once this Regulation becomes applicable, matters exhaustively harmonised by this Regulation, including the sustainability-related financial product categorisation regime, should be covered by this Regulation and any overlapping supervisory guidance should be read in a manner consistent with this Regulation and, in the event of inconsistency, give way to this Regulation.

Or. it

Amendment 131

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Recital 33 a (new)

Text proposed by the CommissionAmendment
(33a) In order to reduce the regulatory burden and to ensure coherent and effective implementation of this Regulation, it should not apply until the delegated acts necessary for its functioning have entered into force. In particular, the Commission Delegated Regulation to be adopted pursuant to Article 19c of this Regulation, as well as the corresponding amendments to Commission Delegated Regulation (EU) 2017/565 and Commission Delegated Regulation (EU) 2017/2359 revising the sustainability preferences requirements under Directive 2014/65/EU and Directive (EU) 2016/97, should all enter into force before the date of application of this Regulation, so as to ensure that the categorisation system established by this Regulation, the disclosure templates implementing it, and the distribution framework through which it reaches end-investors operate as a coherent and complete whole from the date of application. An implementation period that would commence before the detailed rules exist would not constitute a genuine implementation period.

Or. en

Justification

The SFDR 1.0 experience showed that launching Level 1 ahead of Level 2 imposes disproportionate costs without delivering clarity. In order to avoid uncertainty in the implementation phase, a phased approach should be chosen.

Amendment 132

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point a

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 1

Text proposed by the CommissionAmendment
(a) point (1) is amended as follows:deleted
(i) point (b) is deleted;
(ii) point (j) is deleted;

Or. en

Amendment 133

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point a – point i

Regulation (EU) 2019/2088

Article 2 – point b

Text proposed by the CommissionAmendment
(i) point (b) is deleted;deleted

Or. en

Amendment 134

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point a – point ii

Regulation (EU) 2019/2088

Article 2 – point j

Text proposed by the CommissionAmendment
(ii) point (j) is deleted;deleted

Or. en

Amendment 135

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point a – point ii a (new)

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 1 – points k and l (new)

Text proposed by the CommissionAmendment
(iia) the following points are added:
'(k) an investment firm which provides investment advice;
(l) a credit institution which provides investment advice.';

Or. en

Amendment 136

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point a – point ii a (new)

Text proposed by the CommissionAmendment
(iia) (iii) the following point is added:
(ja): a producer of packaged retail and insurance-based investment products or ‘PRIIP producer’;

Or. it

Amendment 137

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) 2019/2088

Article 2 – paragraph 1– points 5 and 6

Text proposed by the CommissionAmendment
(b) points (5) and (6) are deleted;deleted

Or. en

Amendment 138

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) 2019/2088

Article 2 – paragraph 1– points 5 and 6

Text proposed by the CommissionAmendment
(b) points (5) and (6) are deleted;deleted

Or. en

Amendment 139

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) 2019/2088

Article 2 – paragraph 1– points 5 and 6

Text proposed by the CommissionAmendment
(b) points (5) and (6) are deleted;deleted

Or. en

Amendment 140

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point d

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 12 – point a

Text proposed by the CommissionAmendment
(d) in point (12), point (a) is deleted;deleted

Or. en

Amendment 141

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point d

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 12 – point a

Text proposed by the CommissionAmendment
(d) in point (12), point (a) is deleted;deleted

Or. en

Amendment 142

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point d

Text proposed by the CommissionAmendment
(d) in point (12), point (a) is deleted;(d) Point 12 is amended as follows:
(i) point (a) is deleted;
(ii) a new point (ga) is added as follows:
(ga) a ready-made retail and insurance-based investment product or ‘PRIIP’

Or. it

Amendment 143

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point d a (new)

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 12 – point h (new)

Text proposed by the CommissionAmendment
(da) in point (12), the following point is added:
'(h) any other portfolio where an investment firm provides a service that involves periodic suitability assessments in accordance with Article 54(13) of Delegated Regulation (EU) 2017/565;';

Or. en

Amendment 144

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point e

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 17

Text proposed by the CommissionAmendment
(e) points (16) and (17) are deleted;(e) point (17) is deleted;

Or. en

Amendment 145

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point e

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 17

Text proposed by the CommissionAmendment
(e) points (16) and (17) are deleted;(e) point (17) is deleted;

Or. en

Amendment 146

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point e

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 16

Text proposed by the CommissionAmendment
(e) points (16) and (17) are deleted;(e) point (16) is deleted;

Or. en

Amendment 147

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point g – introductory part

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 28a (new)

Text proposed by the CommissionAmendment
(g) the following points (25) to (28) are added:(g) the following points (25) to (28a) are added:

Or. en

Amendment 148

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point g

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 28 a (new)

Text proposed by the CommissionAmendment
(28a) 'pre-packaged retail and insurance-based investment product' means a pre-packaged retail and insurance-based investment product or 'PRIIP' as defined in Article 4(3) of Regulation (EU) No 1286/2014, other than a UCITS, AIF or derivative referred to in points (4) to (10) of Section C of Annex I to Directive 2014/65/EU or any product referred to in Article 2(2) of Regulation (EU) No 1286/2014 of the European Parliament and of the Council’

Or. it

Amendment 149

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point g

Regulation (EU) 2019/2088

Article 2 – paragraph 1 – point 28 a (new)

Text proposed by the CommissionAmendment
(28a) ‘social objectives’ refers to the social topics and sub-topics included in ESRS1 Appendix A in the Commission Delegated Regulation [reference to be adapted to the new ESRS delegated act once finalised], namely positive contributions to the rights of workers, workers in value chain, affected communities, and consumers and end-users

Or. en

Amendment 150

Pascal Canfin

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point g

Regulation (UE) 2019/2088

Article 2 – paragraph 1 – point 28 a (new)

Text proposed by the CommissionAmendment
(28a) 'data provider' means a legal person whose occupation includes providing financial market participants data products;

Or. en

Amendment 151

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 3

Text proposed by the CommissionAmendment
(3) Article 2a is deleted;(3) Article 2a is replaced by the following:
Minimum social and governance safeguards
For financial products mentioned in Articles 7 to 9a of this Regulation, financial market participants should ensure that investments are in line with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights. Moreover, the investments need to be aligned with the “Do no significant harm” principle according to the Regulation (EU) 2020/852.

Or. en

Amendment 152

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 3

Text proposed by the CommissionAmendment
(3) Article 2a is deleted;(3) Article 2a is replaced by the following;
Minimum social and governance safeguards
For financial products mentioned in Articles 7, 8, 9 of this Regulation, financial market participants shall ensure that investments do not contravene minimum social standards as specified by the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights.

Or. en

Amendment 153

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/2088

Article 3 – title

Text proposed by the CommissionAmendment
Transparency on sustainability risk policies in relation to the integration of sustainability risksTransparency on sustainability policies in relation to the integration of sustainability risks and the mitigation of adverse impacts on sustainability factors

Or. en

Amendment 154

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/2088

Article 3 – title

Text proposed by the CommissionAmendment
Transparency on sustainability risk policies in relation to the integration of sustainability risksTransparency on sustainability policies

Or. en

Amendment 155

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/2088

Article 3 – title

Text proposed by the CommissionAmendment
Transparency on sustainability risk policies in relation to the integration of sustainability risksTransparency on sustainability policies in relation to the integration of sustainability risks

Or. en

Amendment 156

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/2088

Article 3 – paragraph 1

Text proposed by the CommissionAmendment
Financial market participants shall publish on their website information about their policies on the integration of sustainability risks in their investment decision-making process.;1. Financial market participants shall publish on their website information about their policies on the integration of sustainability risks in their investment decision-making process.; Financial market participants shall publish and maintain on their website a single document containing information about their policies on the integration of sustainability risks in their investment decision-making process.’ including a description of whether and how those policies take into account (i) the risks that sustainability factors pose to the value of investments and (ii) the adverse impacts of investment decisions on sustainability factors.
2. Financial market participants shall include in the information published in accordance with paragraph 1 at least the following:
(a) a description of their engagement policies, including
(i) the set of measurable and time-bound sustainability-related objectives including sectoral expectations;
(ii) an implementation plan specifying the time-bound milestones and actions to be taken to achieve those objectives;
(iii) a clear and robust escalation framework for when the expected milestones and objectives are not met, which may lead to divestment and capital reallocation decisions;
(iv) how they are supported by a sustainability-focused voting policy where applicable.
(b) the proportion of their assets under management and where applicable proportion of products offered that are invested in article 7, 8 and 9, relative to their total assets under management and total number of products respectively.
(c) a summary of exclusions policies, and whether these go beyond compliance with the minimum exclusions established in Article 7(1)(b) and (c), Article 8(1)(b) and Article 9(1)(b) to (ca) of this Regulation including where relevant a link to documents detailing their exclusion policy at entity-level.
(d) a statement on due diligence policies established to identify, prevent, mitigate and remediate the adverse impacts of their investment products disclosed according to Articles 7 (1) (d), 8 (1) (c), 9 (1) (d) of this Regulation including where relevant a link to documents detailing their due diligence policies at entity-level.
2. In the same document, financial market participants shall publish a limited set of principal adverse impacts on sustainability factors, in accordance with a delegated act adopted pursuant to Article 19b. The limited set shall: (i) build on the indicators referred to in Commission Delegated Regulation (EU) [reference to be adapted to the new ESRS delegated act once finalised]; (ii) be limited to indicators for which data is broadly available, either through disclosure by investee companies or through reliable estimation methodologies; and (iii) not exceed 4 indicators in total.

Or. en

Amendment 157

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/2088

Article 3 – paragraph 1

Text proposed by the CommissionAmendment
Financial market participants shall publish on their website information about their policies on the integration of sustainability risks in their investment decision-making process.;1. Financial market participants shall publish on their website information about their policies on the integration of sustainability risks in their investment decision-making process, including a description of whether and how those policies take into account (i) the risks that sustainability factors pose to the value of investments and (ii) the adverse impacts of investment decisions on sustainability factors.
2. Financial market participants shall publish on their website information on their engagement policies, including a description of:
(a) the set of measurable and time-bound sustainability-related objectives including sectoral expectations;
(b) an implementation plan specifying the time-bound milestones and actions to be taken to achieve those objectives;
(c) a clear and robust escalation framework for when the expected milestones and objectives are not met, which may lead to divestment and capital reallocation decisions;
(d) how they are supported by a sustainability-focused voting policy where applicable.
3. Financial market participants shall publish on their website information on the proportion of their assets under management and proportion of number of products that are invested in each category pursuant to Articles 7, 8 and 9, relative to their total assets under management and total number of products respectively.
4. In the same document as paragraph 3, financial market participants shall publish:
(i) the entity's exposure to principal adverse impacts on sustainability factors, in particular greenhouse gas emissions, exposure to companies active in the fossil fuel sector, violations of the United Nations Guiding Principles and OECD Guidelines for Multinational Enterprises, and exposure to controversial weapons;
(ii) the aggregated list of principal adverse impacts at product level;
(iii) the processes and methodologies applied to identify and prioritise principal adverse impacts, as well as the actions taken to mitigate the associated risks and impacts.

Or. en

Amendment 158

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/2088

Article 3 – paragraph 1

Text proposed by the CommissionAmendment
Financial market participants shall publish on their website information about their policies on the integration of sustainability risks in their investment decision-making process.;Financial market participants shall publish on their website information on:
(a) their policies on the integration of sustainability risks in their investment decision-making process;
(b) whether and how they mitigate the principal adverse impacts of investment decisions on sustainability factors pursuant to Article 9aa and 19b;
(c) the proportion of their assets under management invested in financial products categorised pursuant to Articles 7, 8 and 9, respectively, expressed as a percentage of their total assets under management.

Or. en

Amendment 159

Isabel Benjumea Benjumea, Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/2088

Article 3 – paragraph 2

Text proposed by the CommissionAmendment
Financial market participants shall publish on their website information about their policies on the integration of sustainability risks in their investment decision-making process.;Financial market participants shall publish on their website information about their policies on the integration of sustainability risks in their investment decision-making process, excluding funds reserved for professional investors;

Or. es

Amendment 160

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2019/2088

Articles 4 and 5

Text proposed by the CommissionAmendment
(5) Articles 4 and 5 are deleted;deleted

Or. en

Amendment 161

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2019/2088

Articles 4 and 5

Text proposed by the CommissionAmendment
(5) Articles 4 and 5 are deleted;deleted

Or. en

Amendment 162

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 5 a (new)

Text proposed by the CommissionAmendment
(5a) Article 5 Transparency of remuneration policies in relation to the integration of sustainability risks
Financial market participants and financial advisers shall include in their remuneration policies information on how those policies are consistent with the integration of sustainability risks, and shall publish that information on their websites.

Or. en

Amendment 163

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 5 b (new)

Text proposed by the CommissionAmendment
(5b) Article 5a Transparency of engagement policies
Financial market participants shall publish on their websites information on their engagement policies, including how those policies are designed to support the sustainability-related objectives of the financial products they manufacture, manage or make available, and how they are consistent with the engagement policy referred to in Article 3g of Directive 2007/36/EC where applicable.

Or. en

Amendment 164

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 6 – point a

Regulation (EU) 2019/2088

Article 6 – title

Text proposed by the CommissionAmendment
Transparency on the integration of sustainability risks in pre-contractual disclosures for all financial products;Transparency on the integration of sustainability risks and principal adverse impacts in disclosures for all financial products;

Or. en

Amendment 165

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 6 – point c a (new)

Text proposed by the CommissionAmendment
(ca) 4. Financial market participants shall disclose on an annual basis in the periodic reports for each financial product a limited amount of principal adverse impacts on sustainability factors.

Or. en

Amendment 166

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 6 – point c b (new)

Text proposed by the CommissionAmendment
(cb) 5. The information referred to in paragraph 4 shall be disclosed in the manner laid down in Article 11(2).

Or. en

Amendment 167

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 6 – point c c (new)

Text proposed by the CommissionAmendment
(cc) 6. The principal adverse impacts on sustainability factors referred to in paragraph 4 shall be the following indicators as listed in Delegated Regulation 2023/2772:
a. GHG intensity
b. Emissions to water
c. Hazardous and radioactive waste
d. Violations of UNGC & OECD Guidelines
e. Lack of a human rights policy
f. Unadjusted gender pay gap
g. Controversial weapons

Or. en

Amendment 168

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – title

Text proposed by the CommissionAmendment
Voluntary transparency on the integration of sustainability factors in pre-contractual disclosures for products that are not categorised as sustainability-related financial productsTransparency on the integration of sustainability factors in pre-contractual disclosures for products that are not categorised as sustainability-related financial products

Or. en

Amendment 169

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – title

Text proposed by the CommissionAmendment
Voluntary transparency on the integration of sustainability factors in pre-contractual disclosures for products that are not categorised as sustainability-related financial productsTransparency on the integration of sustainability factors in pre-contractual disclosures for products that are not categorised as sustainability-related financial products

Or. en

Amendment 170

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a (new) – paragraph 1

Text proposed by the CommissionAmendment
Financial market participants not compliant with Articles 7, 8 or 9 of this Regulation need to inform investors that their financial products may contain ESG and sustainability risks. This shall be disclosed both in the information on the financial product level as a warning label as well as in the participant’s annual reporting.

Or. en

Amendment 171

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a (new) – paragraph 1

Text proposed by the CommissionAmendment
Financial market participants shall not be prevented from including in the pre-contractual documentation of financial products, other than those categorised as sustainability-related financial products pursuant to Articles 7, 8 or 9, information on whether and how those financial products consider sustainability factors, provided that such information:Financial market participants shall include in the pre-contractual documentation of financial products, other than those categorised as sustainability-related financial products pursuant to Articles 7, 8 or 9, information on:
a) whether and how those financial products integrate sustainability risks;
b) whether and how they mitigate the principal adverse impacts of investment decisions on sustainability factors pursuant to Article 9aa;
c) the expected greenhouse gas emissions intensity associated with the financial products;
d) the exposure of the financial product to the exploration, production, processing, distribution, storage or combustion of fossil fuels.
Such information shall:

Or. en

Amendment 172

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1

Text proposed by the CommissionAmendment
Financial market participants shall not be prevented from including in the pre-contractual documentation of financial products, other than those categorised as sustainability-related financial products pursuant to Articles 7, 8 or 9, information on whether and how those financial products consider sustainability factors, provided that such information:Financial market participants shall not be prevented from including in the pre-contractual documentation of financial products, other than those categorised as sustainability-related financial products pursuant to Articles 7, 8 or 9, information on whether and how those financial products consider sustainability factors, provided that such information accurately represents the true composition of the financial product's investments and provided that such information:

Or. en

Amendment 173

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 1 – introductory part

Text proposed by the CommissionAmendment
Financial market participants shall not be prevented from including in the pre-contractual documentation of financial products, other than those categorised as sustainability-related financial products pursuant to Articles 7, 8 or 9, information on whether and how those financial products consider sustainability factors, provided that such information:Financial market participants shall not be prevented from including in the pre-contractual documentation of financial products, other than those categorised as sustainability-related financial products pursuant to Articles 7, 8 or 9, information on whether and how those financial products consider sustainability factors, other than information pursuant to paragraph 1a of this Article, provided that such information:

Or. en

Amendment 174

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 1 – point a

Text proposed by the CommissionAmendment
(a) is not a central element of the pre-contractual disclosures of the financial product;deleted

Or. en

Amendment 175

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 1 – point a

Text proposed by the CommissionAmendment
(a) is not a central element of the pre-contractual disclosures of the financial product;(a) not be a central element of the pre-contractual disclosures of the financial product;

Or. en

Amendment 176

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 1 – point b

Text proposed by the CommissionAmendment
(b) is not included in the KIID as referred to in Article 78 of Directive 2009/65/EC or the KID as referred to in Chapter II of Regulation (EU) No 1286/2014\*3;deleted

Or. en

Amendment 177

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 1 – point b

Text proposed by the CommissionAmendment
(b) is not included in the KIID as referred to in Article 78 of Directive 2009/65/EC or the KID as referred to in Chapter II of Regulation (EU) No 1286/2014\*3;deleted

Or. en

Amendment 178

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) does not constitute claims within the meaning of Article 7(1), Article 8(1) or Article 9(1).(c) not constitute claims within the meaning of Article 7(1), Article 8(1) or Article 9(1).

Or. en

Amendment 179

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 1 – point c a (new)

Text proposed by the CommissionAmendment
(ca) (c) does not constitute a claim within the meaning of Article 7 (1), Article 8 (1) or Article 9 (1) and does not have to present the financial product as falling within any of the categories set out in Articles 7, 8 or 9;
(d) may include information on the consideration or integration of sustainability factors, including exclusions, engagement or other sustainability-related strategies, which in themselves are not to be considered as sustainability-related claims;
(e) shall be accompanied by a clear and prominent statement that the financial product does not belong to any category of sustainability-related financial products within the meaning of this Regulation.

Or. it

Amendment 180

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 1 – point c a (new)

Text proposed by the CommissionAmendment
(ca) declares that the product is not in compliance with financial products as defined in Article 7(1), Article 8(1) and Aricle 9(1).

Or. en

Amendment 181

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 2

Text proposed by the CommissionAmendment
For the purposes of the first subparagraph, point (a), the information shall be considered not be a central element where it is secondary to the presentation of the product characteristics both in terms of breadth and positioning in the document, neutral, and limited to less than 10% of the volume occupied by the presentation of the financial product’s investment strategy.For the purposes of the first subparagraph, financial market participants may disclose the proportion of investments included in their products that comply with the critera set out in the articles 7, 8 or 9.

Or. en

Amendment 182

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 – subparagraph 2

Text proposed by the CommissionAmendment
For the purposes of the first subparagraph, point (a), the information shall be considered not be a central element where it is secondary to the presentation of the product characteristics both in terms of breadth and positioning in the document, neutral, and limited to less than 10% of the volume occupied by the presentation of the financial product’s investment strategy.For the purposes of the first subparagraph, point (a), the information shall be considered not be a central element where it is secondary to the presentation of the product characteristics both in terms of breadth and positioning in the document, neutral, and limited to less than 5% of the volume occupied by the presentation of the financial product’s investment strategy.

Or. en

Amendment 183

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 a (new)

Text proposed by the CommissionAmendment
1a. Financial market participants making pre-contractual disclosures shall include descriptions of the following in such disclosures:
(a) whether they exclude investments in the companies referred to in Article 12(1), points (a) to (d), of Delegated Regulation (EU) 2020/1818, with the exception of investments in use of proceeds instruments issued by companies:
(i) that are European Green Bonds, pursuant to Article 3 of Regulation (EU) 2023/2631; or
(ii) where the proceeds do not fund any underlying activities excluded under Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818, provided that the issuer of the use of proceeds instruments is not excluded under Article 12(1), point (c), of that Delegated Regulation;
(b) whether they exclude investments in companies that:
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal, lignite, oil fuels or gaseous fuels; or
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation;
(c) the principal adverse impacts of their investments on sustainability factors.

Or. en

Amendment 184

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 1 a (new)

Text proposed by the CommissionAmendment
1a. Financial market participants offering financial products other than those categorised under Article 7, 8 or 9 of this regulation shall include in a prominent manner in the information referred to in Articles 6(3) and 11(2) a statement confirming that the product concerned fails to meet EU standards for defining sustainable financial products, combatting greenwashing and transparency on adverse impacts.

Or. en

Amendment 185

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 3

Text proposed by the CommissionAmendment
3. Financial market participants disclosing information under paragraph 1 shall include on an annual basis a description of the consideration of the sustainability factors in their periodic report. The conditions listed under paragraph 1, points (a) to (c), apply mutatis mutandis with regards to any sustainability-related information included in this periodic report.3. Financial market participants disclosing information under paragraph 1 shall include on an annual basis a description of the integration of sustainability risks and the mitigation of the principal adverse impacts of investment decisions on sustainability factors in their periodic report. The conditions listed under paragraph 1, points (a) to (c), apply mutatis mutandis with regards to any sustainability-related information included in this periodic report.

Or. en

Amendment 186

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 3

Text proposed by the CommissionAmendment
3. Financial market participants disclosing information under paragraph 1 shall include on an annual basis a description of the consideration of the sustainability factors in their periodic report. The conditions listed under paragraph 1, points (a) to (c), apply mutatis mutandis with regards to any sustainability-related information included in this periodic report.3. Financial market participants disclosing information under paragraph 1 shall include on an annual basis a description of the consideration of the sustainability factors in their periodic report. The conditions listed under paragraph 1, point (a), apply mutatis mutandis with regards to any sustainability-related information included in this periodic report.

Or. en

Amendment 187

Dirk Gotink

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 3 a (new)

Text proposed by the CommissionAmendment
3a. In addition to including information in the pre-contractual documentation of financial products, financial market participants that are IORPs may disclose the information under paragraph 1 of this Article in a manner that fits their characteristics and communication with members and beneficiaries.

Or. en

Amendment 188

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 2019/2088

Article 6a – paragraph 4 a (new)

Text proposed by the CommissionAmendment
4a. Where financial market participants do not provide all or part of the information referred to in points (a), (b), (c) or (d) under paragraph 1, they shall include in the pre-contractual documentation the following statement, as applicable:
“This financial product does not integrate sustainability risks.”
“This financial product does not mitigate the principal adverse impacts of investment decisions on sustainability factors.”
“This financial product does not disclose the expected greenhouse gas emissions intensity associated with the financial product.”
“This financial product is exposed to the exploration, production, processing, distribution, storage or combustion of fossil fuels.”
Financial market participants shall accompany that statement with a concise explanation of the reasons for not providing the relevant information.

Or. en

Amendment 189

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point a

Text proposed by the CommissionAmendment
(a) they have a 70% threshold linked to the proportion of investments to meet a clear and measurable transition objective related to sustainability factors, including environmental or social transition objectives in accordance with the binding elements of the investment strategy of the financial product, measured using appropriate sustainability-related indicator(s);(a) they have a 80% threshold linked to the proportion of investments to meet a clear and measurable transition objective related to sustainability factors, including environmental or social transition objectives in accordance with the binding elements of the investment strategy of the financial product, measured using harmonised and science-based sustainability-related indicator(s), covering the whole life cycle;

Or. en

Amendment 190

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point a

Text proposed by the CommissionAmendment
(a) they have a 70% threshold linked to the proportion of investments to meet a clear and measurable transition objective related to sustainability factors, including environmental or social transition objectives in accordance with the binding elements of the investment strategy of the financial product, measured using appropriate sustainability-related indicator(s);(a) they have a 100% threshold linked to the proportion of investments to meet a clear and measurable transition objective related to sustainability factors, including environmental or social transition objectives in accordance with the binding elements of the investment strategy of the financial product, measured using appropriate sustainability-related indicator(s);

Or. en

Amendment 191

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point a

Text proposed by the CommissionAmendment
(a) they have a 70% threshold linked to the proportion of investments to meet a clear and measurable transition objective related to sustainability factors, including environmental or social transition objectives in accordance with the binding elements of the investment strategy of the financial product, measured using appropriate sustainability-related indicator(s);(a) they have a 50% threshold linked to the proportion of investments to meet a clear and measurable transition objective related to sustainability factors, including environmental or social transition objectives in accordance with the binding elements of the investment strategy of the financial product, measured using appropriate sustainability-related indicator(s);

Or. en

Justification

The 70% threshold is empirically undeliverable for diversified, multi-asset and insurance mandates given current data availability, reduced CSRD scope post-Omnibus, and the non-applicability of EU Taxonomy reporting to non-EU issuers. A 50% threshold, combined with mandatory disclosure of the non-qualifying portion and the category exclusions, provides sufficient market integrity without structurally barring credible ESG strategies from the categorisation system.

Amendment 192

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point a

Text proposed by the CommissionAmendment
(a) they have a 70% threshold linked to the proportion of investments to meet a clear and measurable transition objective related to sustainability factors, including environmental or social transition objectives in accordance with the binding elements of the investment strategy of the financial product, measured using appropriate sustainability-related indicator(s);(a) they have a 80% threshold linked to the proportion of investments to meet a clear and measurable transition objective related to sustainability factors, including environmental or social transition objectives in accordance with the binding elements of the investment strategy of the financial product, measured using appropriate sustainability-related indicator(s);

Or. en

Amendment 193

Stephen Nikola Bartulica

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:deleted
(i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council\*5; or
(ii) where the proceeds do not fund any underlying activities as referred to in Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818, provided that the issuer of the use of proceeds instruments is not excluded under Article 12(1), point (c), of that Regulation.

Or. en

Amendment 194

Marlena Maląg

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:deleted
(i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council\*5; or
(ii) where the proceeds do not fund any underlying activities as referred to in Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818, provided that the issuer of the use of proceeds instruments is not excluded under Article 12(1), point (c), of that Regulation.

Or. en

Justification

The proposed sectoral exclusions introduce rigid constraints that risk undermining the ability of EU financial markets to allocate capital efficiently across the economy. By excluding entire sectors irrespective of the performance or transition efforts of individual companies, the framework may reduce the attractiveness of EU financial products and weaken Europe’s global competitiveness.

Amendment 195

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:deleted
(i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council\*5; or
(ii) where the proceeds do not fund any underlying activities as referred to in Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818, provided that the issuer of the use of proceeds instruments is not excluded under Article 12(1), point (c), of that Regulation.

Or. en

Justification

Blanket sector exclusions are incompatible with a contribution-based framework. A product category defined by measurable progress towards sustainability objectives should assess companies on verified trajectory, not binary sector membership.

Amendment 196

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818*4, with the exception of investments in use of proceeds instruments issued by companies:(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818*4, with the exception of investments in use of proceeds instruments issued by companies: (i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council; or (ii) where the proceeds do not fund any of the underlying activities referred to in Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818, provided that the issuer of the use of proceeds instruments is not excluded under Article 12(1)(c) of that Regulation.

Or. it

Amendment 197

Morten Løkkegaard

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4,
Unless the financial market participant demonstrates that the investment supports a credible transition pathway in accordance with paragraph 2 and contributes to the transition objective of the financial product,
with the exception of investments in use of proceeds instruments issued by companies:

Or. en

Amendment 198

Jaroslava Pokorná Jermanová, Jaroslav Knot, Pierre Pimpie, Tomáš Kubín

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:(b) Financial market participants shall determine the consistency of investments with the transition objective of the financial product on the basis of disclosed sustainability-related indicators, principal adverse impacts, and credible transition strategies, taking into account the specific characteristics, transition pathways, and sustainability performance of the undertakings concerned.

Or. en

Amendment 199

Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of tabacco cultivation, investments in EU Green Bonds, which shall always be categorised as sustainable, and use of proceeds instruments issued by companies:

Or. en

Amendment 200

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4

Or. en

Justification

Correcting a drafting error by the Commission to clarify that the UoP exemption applies to companies failing to meet the new exclusions as well

Amendment 201

Gerben-Jan Gerbrandy

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4,

Or. en

Amendment 202

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818*4, with the exception of investments in use of proceeds instruments issued by companies:(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818*4, with the exception of investments in use of proceeds instruments issued by companies:

Or. it

Amendment 203

Angelika Winzig

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b) and (c) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:

Or. en

Amendment 204

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) they exclude investments in companies as referred to in Article 12(1), points (a), (b), (c), and (d) of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:(b) they exclude investments in companies as referred to in Article 12(1), points (a), (c), and of Commission Delegated Regulation (EU) 2020/1818\*4, with the exception of investments in use of proceeds instruments issued by companies:

Or. en

Amendment 205

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b – point i

Text proposed by the CommissionAmendment
(i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council\*5; ordeleted

Or. en

Amendment 206

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b – point i

Text proposed by the CommissionAmendment
(i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council*5; ordeleted

Or. it

Amendment 207

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b – point i

Text proposed by the CommissionAmendment
(i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council\*5; or(i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council\*5,1a,1b;
1a ICMA Green Bond Principles - https://www.icmagroup.org/assets/documents/Sustainable-finance/2025-updates/Green-Bond-Principles-GBP-June-2025.pdf
1b ICMA Social Bonds Principles - https://www.icmagroup.org/assets/documents/Sustainable-finance/2025-updates/Social-Bond-Principles-SBP-June-2025.pdf

Or. en

Amendment 208

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b – point ii

Text proposed by the CommissionAmendment
(ii) where the proceeds do not fund any underlying activities as referred to in Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818, provided that the issuer of the use of proceeds instruments is not excluded under Article 12(1), point (c), of that Regulation.deleted

Or. en

Amendment 209

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – point b – point ii

Text proposed by the CommissionAmendment
(ii) where the proceeds do not fund any underlying activities as referred to in Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818, provided that the issuer of the use of proceeds instruments is not excluded under Article 12(1), point (c), of that Regulation.deleted

Or. en

Amendment 210

Luděk Niedermayer

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point b a (new)

Text proposed by the CommissionAmendment
(ba) they exclude investments in companies that develop new projects for the exploration, extraction, distribution or refining of hard coal or lignite, oil fuels or gaseous fuels. Where hard coal or lignite is used for power generation, they exclude investments in companies that do not have a time-bound and measurable plan to phase out such activity.

Or. en

Amendment 211

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point b a (new)

Text proposed by the CommissionAmendment
(ba) they exclude investment in companies involved in any activities related to weapons;

Or. en

Amendment 212

Isabel Benjumea Benjumea, Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:deleted
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.

Or. es

Amendment 213

Marlena Maląg

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:deleted
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.

Or. en

Justification

The proposed sectoral exclusions introduce rigid constraints that risk undermining the ability of EU financial markets to allocate capital efficiently across the economy. By excluding entire sectors irrespective of the performance or transition efforts of individual companies, the framework may reduce the attractiveness of EU financial products and weaken Europe’s global competitiveness.

Amendment 214

Stephen Nikola Bartulica

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:deleted
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.

Or. en

Amendment 215

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:deleted
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.

Or. en

Justification

Article 7(1)(c) contradicts the Transition category's own purpose. By excluding companies developing new fossil fuel projects, it bars from the Transition label precisely the energy sector operators that transition finance is designed to reach.

Amendment 216

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:deleted
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.

Or. en

Amendment 217

Jaroslava Pokorná Jermanová, Jaroslav Knot, Pierre Pimpie, Tomáš Kubín

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:deleted
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.

Or. en

Amendment 218

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:(c) Exclude investments in companies that derive revenues from the exploration, extraction and refining of coal and lignite, petroleum fuels or gaseous fuels, except where those companies:

Or. it

Amendment 219

Luděk Niedermayer

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:(c) they exclude investments in companies that derive revenues from the exploration, extraction or refining of oil fuels or gaseous fuels, unless such companies:

Or. en

Amendment 220

Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c

Text proposed by the CommissionAmendment
(c) they exclude investments in companies that:(c) they exclude investments in the development of projects for:

Or. en

Amendment 221

Christophe Gomart, François-Xavier Bellamy, Michalis Hadjipantela

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point i

Text proposed by the CommissionAmendment
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels.However, such companies shall not be excluded where:
— a minimum of 20 % of their capital expenditures is dedicated to low carbon, transitional or enabling activities, such as Taxonomy-eligible economic activities, or of 15 % to Taxonomy-aligned economic activities, as defined in Commission Delegated Regulation (EU) No 2021/2178 of 6 July 2021. In each case, that percentage shall be determined as the higher of (i) the amount calculated in accordance with point 1.1.2 of Annex I, or (ii) the amount calculated in accordance with the second paragraph of point 1.2.3 of Annex I to that Regulation; or
— they achieve an ESG rating, pursuant to Regulation 2024/3005, that outperforms the average rating of the investment universe or the reference benchmark; or

Or. en

Amendment 222

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point i

Text proposed by the CommissionAmendment
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or(i) allocate at least 10 % of total capital expenditure to taxonomy-aligned economic activities in accordance with the first subparagraph of Section 1.1.2.2 of Annex I to Delegated Regulation (EU) 2021/2178; achieve an ESG rating, within the meaning of Regulation (EU) 2024/3005, that exceeds the average rating of the investment universe or the benchmark; or

Or. it

Amendment 223

Luděk Niedermayer

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point i

Text proposed by the CommissionAmendment
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or(i) allocate at least 20% of their total capital expenditure to Taxonomy-aligned activities;

Or. en

Amendment 224

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point i

Text proposed by the CommissionAmendment
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or(i) develop projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or

Or. en

Amendment 225

Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point i

Text proposed by the CommissionAmendment
(i) develop new projects for the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or(i) the exploration, extraction, distribution or refining of hard coal and lignite, oil fuels or gaseous fuels; or

Or. en

Amendment 226

Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point i a (new)

Text proposed by the CommissionAmendment
(ia) However, companies shall not be excluded where: (1) they allocate at least 10% of their capital expenditures to low-carbon, transitional or enabling actives, including Taxonomy-eligible economic activities. For the purposes of this Regulation, expenditures falling within this category shall also include those incurred through joint venture arrangements, including where such arrangements are not subject to full consolidation for financial reporting purposes; or (2) they achieve an ESG ratings that exceeds the average rating of the investment universe or of the reference benchmark.

Or. en

Amendment 227

Luděk Niedermayer

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii

Text proposed by the CommissionAmendment
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.(ii) allocate, over a rolling three-year period, a higher average proportion of their total capital expenditure to Taxonomy-aligned activities than to activities that increase or prolong revenues from existing oil fuels or gaseous fuels projects; and

Or. en

Amendment 228

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii

Text proposed by the CommissionAmendment
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.(ii) have introduced a time-bound and measurable strategy to reduce their scope 1 and scope 2 greenhouse gas emissions.

Or. it

Amendment 229

Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii

Text proposed by the CommissionAmendment
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.(ii) the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for heat and power generation.

Or. en

Amendment 230

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii

Text proposed by the CommissionAmendment
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.(ii) develop projects for the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.

Or. en

Amendment 231

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii

Text proposed by the CommissionAmendment
(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal or lignite for power generation.(ii) develop new projects for, or do not have a plan to phase-out from, the exploration, mining, extraction, distribution, refining or exploitation of hard coal, lignite, oil fuels or gaseous fuels.

Or. en

Amendment 232

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii a (new)

Text proposed by the CommissionAmendment
(iia) are involved in severe human rights and humanitarian law abuses which have not been effectively addressed and remediated in accordance with the OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights.

Or. en

Justification

Updating the reference from UNGC principles in the benchmark delegated act to the more apposite UNGPs, while also removing the refrence to the benchmark administrator in establishing breaches

Amendment 233

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii a (new)

Text proposed by the CommissionAmendment
(iia) by way of derogation from the first subparagraph, point (b), investments in companies referred to in Article 12(1)(b) of Commission Delegated Regulation (EU) 2020/1818 shall not be excluded where those companies:

Or. it

Amendment 234

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii a (new)

Text proposed by the CommissionAmendment
(iia) are involved in any activities related to controversial weapons as identified by reference to international treaties and conventions, United Nations principles and, where applicable, national legislation.

Or. en

Amendment 235

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii a (new)

Text proposed by the CommissionAmendment
(iia) develop new projects, or do not have a plan to phase-out from projects, related to the generation or distribution of nuclear energy.

Or. en

Amendment 236

Luděk Niedermayer

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c – point ii a (new)

Text proposed by the CommissionAmendment
(iia) have in place a time-bound and measurable strategy to reduce their Scope 1 and Scope 2 greenhouse gas emissions.

Or. en

Amendment 237

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c a (new)

Text proposed by the CommissionAmendment
(ca) are accompanied by a credible sustainability-related engagement strategy which targets specific changes, sets defined and time-bound milestones, and measures progress against those targets and milestones. Such a strategy shall include, where applicable to the asset class concerned, a sustainability-focused voting policy and escalation actions to be taken where the expected changes are not achieved, in combination with any of the strategies referred to in points (a) to (d);

Or. en

Amendment 238

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c a (new)

Text proposed by the CommissionAmendment
(ca) allocate at least [15 %] of total capital expenditure to [low-carbon energy activities or taxonomy-aligned economic activities] and increase this share over time;

Or. it

Amendment 239

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c a (new)

Text proposed by the CommissionAmendment
(ca) have introduced a time-bound and measurable strategy to reduce their scope 1 and scope 2 greenhouse gas emissions;

Or. it

Amendment 240

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point c c (new)

Text proposed by the CommissionAmendment
(cc) have conducted and implemented a measurable corporate strategy to reduce their carbon emissions and environmental impact.

Or. it

Amendment 241

Jaroslava Pokorná Jermanová, Jaroslav Knot, Pierre Pimpie, Tomáš Kubín

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point d

Text proposed by the CommissionAmendment
(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(d) they identify and disclose the most material principal adverse impacts of their investments on sustainability factors, limited to a maximum of three indicators selected on the basis of the investment strategy and the asset classes concerned, and explain any actions taken to address those impacts. Financial market participants may choose to comply with the disclosure requirement described under the first subparagraph point (d) by selecting from the voluntary list of indicators to be adopted pursuant to Article 19b(a)(i), or by means of a concise qualitative explanation where quantitative data is not available or not material to the product's strategy.

Or. en

Amendment 242

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point d

Text proposed by the CommissionAmendment
(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts, including, where applicable, the exclusion of companies that cause, contribute to or are linked to principal adverse impacts and fail to prevent or mitigate those impacts, in accordance with delegated acts adopted pursuant to Article 19b.

Or. en

Amendment 243

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point d

Text proposed by the CommissionAmendment
(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts, including, where applicable, the exclusion of companies that cause, contribute to or are linked to principal adverse impacts and fail to prevent or mitigate those impacts, in accordance with delegated acts adopted pursuant to Article 19b.

Or. en

Amendment 244

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point d

Text proposed by the CommissionAmendment
(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts. including, where applicable, engagement with companies that cause, contribute to or are linked to principal adverse impacts.

Or. en

Amendment 245

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point d

Text proposed by the CommissionAmendment
(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, to the extent that data is accessible taking into account the reporting obligations of investee companies, and explain any actions taken to address those impacts.

Or. en

Amendment 246

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point d

Text proposed by the CommissionAmendment
(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts.(d) they identify and disclose the principal adverse impacts of their investments on sustainability factors taking into account the severity of the impact, and explain any actions taken to address those impacts, including engagement, voting and escalation strategies.

Or. en

Amendment 247

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point d a (new)

Text proposed by the CommissionAmendment
(da) they are accompanied with a credible sustainability-related engagement strategy that includes measurable sustainability objectives, an implementation plan specifying clear targets and time-bound milestones, a sustainability-focused voting policy where applicable to the asset class, and a clear and robust escalation framework for cases when the expected changes are not achieved, which may lead to divestment and the re-allocation of capital. The engagement strategy shall cover the full portfolio including all asset classes, except where meaningful engagement is not feasible for a particular asset or investment approach. Financial market participants may prioritise engagement activities based on the size and nature of investments, the portfolio composition and the asset alignment with the product's sustainability objective. The engagement strategy may be applied in conjunction with the investment approaches referred to under paragraph 2 points (a) to (d), (g) or (h);

Or. en

Amendment 248

Isabel Benjumea Benjumea, Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 1 – point d a (new)

Text proposed by the CommissionAmendment
(da) Financial market participants that have taken all reasonable measures within their control to comply with the aforementioned requirements shall not be deemed to be in breach of them. A breach of those requirements that is of limited duration and is disclosed to their investors in a transparent manner shall not be considered a breach of the applicable requirement.

Or. es

Amendment 249

Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 2

Text proposed by the CommissionAmendment
Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability-related indicators.The exclusion criteria described in the first subparagraph, points (b) and (c) shall not apply to: i. distribution, when companies have a legally binding obligation to connect new customers to the existing gas grid; ii. actions mandated by Member States or the Union on account of security requirements. The use of proceeds instruments referred to in the first subparagraph, point (b) shall also include other instruments issued in keeping with International Capital Market Association Principles and the new Climate Transition Bond Guidelines, and paired with credible transition trajectories.
The exclusions listed in this paragraph shall be applied with the exception of investments in use of proceeds instruments issued by companies: (i) in accordance with Article 3 of Regulation (EU) 2023/2631 of the European Parliament and of the Council*5; or where the proceeds do not fund any underlying activities as referred to in Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818, provided that the issuer of the use of proceeds instruments is not excluded under Article 12(1), point (c), of that Regulation
Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability-related indicators.

Or. en

Amendment 250

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 2

Text proposed by the CommissionAmendment
Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability-related indicators.Financial market participants shall comply in with the disclosure requirement described under the first subparagraph point (d) by using the mandatory sustainability-related indicators in accordance with the delegated act adopted pursuant to Article 19b. The mandatory sustainability-related indicators shall at least include indicators on the following:
(i) greenhouse gas emissions
(ii) exposure to companies active in the fossil fuel sector
(iii) exposure to companies that are involved in any activities related to controversial weapons (iv) exposure to activities negatively affecting biodiversity-sensitive areas
(v) exposure to companies without processes and mechanisms to monitor compliance with the UNGPs and OECD Guidelines for Multinational Enterprises

Or. en

Amendment 251

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 2

Text proposed by the CommissionAmendment
Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability-related indicators.Financial market participants must comply with the disclosure requirement described in the first point of subparagraph (d) using appropriate sustainability-related indicators. For the purposes of point (d) of the first subparagraph, financial market participants shall use at least one indicator among those listed in the delegated act to be adopted by the Commission referred to in Article 19(b)(a)(i) that is more relevant to the transition objective or objectives of the financial product. Where financial market participants demonstrate that none of those indicators is relevant to the financial product, they may use alternative sustainability-related indicators.

Or. it

Amendment 252

Luděk Niedermayer

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 2

Text proposed by the CommissionAmendment
Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability-related indicators.Financial market participants may comply with the disclosure requirement referred to in the first subparagraph, point (d), by using, in full or in part, appropriate sustainability-related indicators, including indicators established in accordance with the delegated act adopted pursuant to Article 19b, or by using another transparent methodology that is appropriate to the investment strategy of the financial product and enables investors to understand the principal adverse impacts of the financial product’s investments on sustainability factors.

Or. en

Amendment 253

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 2

Text proposed by the CommissionAmendment
Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability-related indicators.Financial market participants shall comply with the disclosure requirement described under the first subparagraph point (d) of this Article by using the mandatory principal adverse impact indicators in accordance with Article 19aa. They may also disclose other principal adverse impact indicators on a voluntary basis.

Or. en

Amendment 254

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 2

Text proposed by the CommissionAmendment
Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability-related indicators.Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using science-based sustainability-related indicators.

Or. en

Amendment 255

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the CommissionAmendment
Financial market participants shall complement the disclosure requirement described under the first subparagraph point (d) by using adverse impact indicators which are material for the investment objective, in accordance with the delegated act adopted pursuant to Article 19b.

Or. en

Amendment 256

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described in the first subparagraph shall be considered to be met for financial products that replicate or are managed in reference to an EU climate transition benchmark that complies with the requirements laid down in Section 2 of Delegated Regulation (EU) 2020/1818, or an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Chapter II of that Delegated Regulation.deleted

Or. en

Amendment 257

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described in the first subparagraph shall be considered to be met for financial products that replicate or are managed in reference to an EU climate transition benchmark that complies with the requirements laid down in Section 2 of Delegated Regulation (EU) 2020/1818, or an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Chapter II of that Delegated Regulation.deleted

Or. en

Amendment 258

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described in the first subparagraph shall be considered to be met for financial products that replicate or are managed in reference to an EU climate transition benchmark that complies with the requirements laid down in Section 2 of Delegated Regulation (EU) 2020/1818, or an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Chapter II of that Delegated Regulation.deleted

Or. en

Amendment 259

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described in the first subparagraph shall be considered to be met for financial products that replicate or are managed in reference to an EU climate transition benchmark that complies with the requirements laid down in Section 2 of Delegated Regulation (EU) 2020/1818, or an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Chapter II of that Delegated Regulation.The conditions described in the first subparagraph, point (a), shall be considered to be met for financial products that replicate or are managed in reference to an EU climate transition benchmark that complies with the requirements laid down in Section 2 of Delegated Regulation (EU) 2020/1818, or an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Chapter II of that Delegated Regulation.

Or. en

Amendment 260

Luděk Niedermayer

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described in the first subparagraph shall be considered to be met for financial products that replicate or are managed in reference to an EU climate transition benchmark that complies with the requirements laid down in Section 2 of Delegated Regulation (EU) 2020/1818, or an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Chapter II of that Delegated Regulation.Financial products that replicate or are managed in reference to an EU climate transition benchmark that complies with the requirements laid down in Section 2 of Delegated Regulation (EU) 2020/1818, or an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Chapter II of that Delegated Regulation, shall be considered to meet the conditions described in the first subparagraph.

Or. en

Amendment 261

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 15%.deleted

Or. en

Amendment 262

Martin Günther

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 15%.deleted

Or. en

Amendment 263

Luděk Niedermayer

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 15%.The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 15%.
For the purpose of assessing whether the minimum proportion of investments required under the first subparagraph is met, where a financial product has a proportion of investments in taxonomy-aligned economic activities, below 15%, each percentage point of such investments shall count as four percentage points. The contribution of such investments may be combined with other investments satisfying the criteria set out in points (b) to (h) of the first subparagraph in order to reach that minimum proportion.

Or. en

Amendment 264

Lara Wolters, Jonás Fernández, Aurore Lalucq, Niels Fuglsang, Evelyn Regner, César Luena

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 15%.The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 25%.

Or. en

Amendment 265

Markus Ferber, Janusz Lewandowski

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 15%.The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 10%.

Or. en

Justification

Market data shows the overwhelming majority of European funds report Taxonomy alignment below 10%. Given a reduced CSRD scope and a lack of data for non-EU issuers, a 10% threshold is already ambitious.

Amendment 266

Fernando Navarrete Rojas

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 15%.The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 5%.

Or. en

Amendment 267

Katri Kulmuni

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3

Text proposed by the CommissionAmendment
The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178\*6, equal or higher than 15%.The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178, equal or higher than 10%.

Or. en

Amendment 268

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3 a (new)

Text proposed by the CommissionAmendment
For financial products categorised under this Article that invest in other financial products categorised under this Article, the calculation of the threshold referred to in point (a) shall take into account the percentage disclosed by those underlying financial products in accordance with point (ga) of paragraph 3.

Or. en

Amendment 269

Denis Nesci, Francesco Ventola, Mariateresa Vivaldini, Marco Falcone, Marco Squarta

Proposal for a regulation

Article 1 – paragraph 1 – point 8

Regulation (EU) 2019/2088

Article 7 – paragraph 1 – subparagraph 3 a (new)

Text proposed by the CommissionAmendment
The financial products referred to in the first subparagraph shall not include investments in issuances by public sector entities, except for the use of proceeds instruments issued by public sector entities:

Or. it