The E.U.’s 2018 Action Plan: Financing Sustainable Growth aims to reorient capital toward sustainable investments, explained Debevoise & Plimpton partner Patricia Volhard
at a recent seminar presented by the firm. The initiative includes a new regulation on sustainability‐related disclosures in the financial services sector (Disclosure Regulation); a framework to facilitate sustainable investment (Taxonomy); a low-carbon benchmarks regulation; and amendments to the Alternative Investment Fund Managers Directive (AIFMD) and other E.U. directives to take into account sustainable investing. The program, which elucidated the fundamental requirements and potential impact of the Disclosure Regulation, the Taxonomy and AIFMD amendments, also included Debevoise & Plimpton attorneys Simon Witney, Jin‑Hyuk Jang, John Young and Eric Olmesdahl. This article explores the key takeaways from the program, including the impact of Brexit on those developments and the key implementation deadlines. For the U.S. regulatory perspective on sustainable investing, see “ESG Considerations for Fund Managers: The U.S. Landscape (Part One of Two)
” (Jun. 25, 2020); and “OCIE’s Targeting of ESG Investing Practices in Recent Examinations and What It Means for Hedge Fund Managers
” (Jun. 11, 2020). See also “Regulators Are Focusing on Sustainable and ESG Investments
” (May 7, 2020).