ESG Global Vision

Corporate governance policy

In force

Proposal for an updated version of the Code is under consideration. No timeline known as of yet.

All companies whose registered offices are in the Netherlands and whose shares, or depositary receipts for shares, have been admitted to trading on a regulated market or a comparable system.

and

All large companies whose registered offices are in the Netherlands (balance sheet value > €500 million) and whose shares, or depositary receipts for shares, have been admitted to trading on a multilateral trading facility or a comparable system.

The Code contains principles and best practice provisions that regulate the relationship between the management board, the supervisory board and the general meeting/shareholders. Listed companies use the Code as a guide for setting up their governance structures and processes. In addition, the Code is a source of inspiration for many other companies and institutions that choose to apply the Code voluntarily. The principles and provisions are aimed at fulfilling responsibilities for long-term value creation, risk management, effective management and supervision, remuneration and the relationship with (the general meeting of) shareholders and stakeholders. The principles can be understood as broadly supported general views on good corporate governance. The principles have been elaborated in best practice provisions. These provisions contain standards for the conduct of directors, supervisory directors and shareholders. They reflect best practice and are an interpretation of the general principles of good corporate governance.

Listed companies must render account for their compliance with the Code in their management report. Based on the ‘comply-or-explain’ principle, the provisions of the Code must either be complied with by applying them or the reason for deviating from the relevant provisions must be explained.

Non-financial reporting, corporate governance policy

In force

Listed companies

This Decree provides that large public and private companies must formulate a corporate governance statement, an explanation of the characteristics and functioning of internal control mechanisms, the compliance with the Dutch Corporate Governance Code and appropriate ambitious targets for the ratio between men and women in the management board, the supervisory board (the top) and the categories of employees to be determined by the company in management positions (the sub-top). They must report this to the Social Economic Council ("Sociaal-Economische Raad", SER).

Non-financial reporting

• Entry into force: 5 December 2014.
• Application: 2018 (covering financial year 2017). 

Financial and non-financial entities that qualify as large public interest entities with more than 500 employees (scope being re-considered).

The NFRD imposes requirements on large public interest entities to include a non-financial statement in their annual report. The non-financial statement should cover, as a minimum, environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters.

The EC is conducting a review of the NFRD with a view to making the disclosure guidelines mandatory, extending the scope of NFRD to a broader range of companies and organisations, requiring some form of assurance for climate disclosures and developing an EU-wide ESG reporting standard in the absence of a globally recognised one. A draft legislative proposal has been adopted by the Commission on 21 April 2021 (Proposal for a Corporate Sustainability Reporting Directive (CSRD)).

Corporate governance policy

Entry into force: 9 June 2017

Companies that have their registered office in the EU and their shares listed on a regulated market in the EU.

SRD II enhances the SRD regime by introducing rules that aim to counter an excessive focus on short-term profits and risk-taking in favour of a longer term, more sustainable model of corporate governance that considers the wider interests of shareholders and stakeholders.

Financial reporting

Entry into force: 29 December 2019. Application:

• Level 1 (high level and principles based requirements) apply from 10 March 2021.
• Level 2 (regulatory technical standards) expected to apply from Q1 2022.

Financial advisers and financial market participants

The Disclosure Regulation sets out a number of entity and product level disclosures required to be made by financial advisers and financial market participants from 10 March 2021.

Financial reporting

Published by the EC on 21 April 2021.

Application: rules expected to start applying from around October 2022.

Firms within the scope of MiFID, AIFMD and UCITS

The proposed amendments set out obligations on investment funds, mutual funds, alternative investment funds (AIFs), investment firms, insurance firms and brokers, and reinsurance companies to provide clients with clear advice on ESG risks and opportunities attached to their investments.

Find out more:

MiFID Delegated Regulation

Delegated Directive

AIFMD Delegated Regulation

UCITS Implementing Directive

Corporate governance policy

Entry into force: 2 August 2022

Management companies and credit institutions

The Delegated Regulation concerns integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms.

Corporate governance policy

Entry into force: 2 August 2022

Any alternative investment fund

The Delegated Regulation concerns sustainability risks and sustainability factors to be taken into account by alternative investment fund managers.

Corporate governance policy

Entry into force: 2 August 2022

Any insurance and reinsurance undertaking

The Delegated Regulation concerns the integration of sustainability risks into the governance of insurance and reinsurance undertakings

The Delegated Regulation provides for the integration of sustainability risks in the prudent person principle. In particular, when dealing with risks arising from investments, insurance and reinsurance undertakings shall take into account sustainability risks. More precisely they shall take into account the potential long-term impact of their investment strategy and decisions on sustainability factors and, where relevant, that strategy and those decisions of an insurance undertaking shall reflect the sustainability preferences of its customers taken into account in the product approval process referred to in Article 4 of Commission Delegated Regulation (EU) 2017/2358 (product oversight and governance requirements for insurance undertakings and insurance distributors)

Corporate governance policy

Entry into force: 2 August 2022

Any insurance undertaking and distributor of insurance products

The Delegated Regulation concerns the integration of sustainability factors, sustainability risks, and sustainability preferences into product control and product governance requirements for insurance companies and distributors of insurance products and into conduct of business rules and investment advice for insurance investment products.

Corporate governance and financial policy

Entry into force: Member States shall implement the Directive by 22 November 2022

Any Member State

The Delegated Directive concerns the integration of sustainability factors into product governance obligations (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).

Corporate governance and financial policy

Entry into force: Member States shall implement the Directive by 2 August 2022

Any Member State

The Delegated Directive concerns sustainability risks and sustainability factors to be taken into account for undertakings for collective investment in transferable securities (UCITS).

In particular, management companies should, when identifying the types of conflicts of interest the existence of which may damage the interests of a UCITS, include conflicts of interest that may arise as a result of the integration of sustainability risks in their processes, systems and internal controls. Those conflicts may include conflicts arising from remuneration or personal transactions of relevant staff, conflicts of interest that could give rise to greenwashing, mis-selling or misrepresentation of investment strategies and conflicts of interests between different UCITS managed by the same management company.

Social policy

Not yet in force. Will be withdrawn, once the Act on responsible and sustainable international operations is in force as the contents will be implemented in this new Act (see hereunder)

All companies that sell goods or services to Dutch end users (consumers)

This Act obliges companies to investigate whether their goods or services have been produced using child labour. Also, companies must develop a plan to prevent child labour in their supply chains. The obligations shall apply to all companies that sell or supply goods or services to Dutch consumers, regardless of where such company is based or registered, without exemptions for legal form or size. In addition, companies shall affirm to a regulator, which is to be determined, that they have exercised an appropriate level of supply chain due diligence to prevent child labour. Fines for breaches under this Act could be up to €870,000 or 10% of the company’s total worldwide revenue.

Social policy

Proposal adopted on 4 March 2021

Employers in the public and private sectors

The proposal sets out pay transparency measures, such as pay information for job seekers, a right to know the pay levels for workers doing the same work, as well as gender pay gap reporting obligations for big companies (with at least 250 employees). The proposal also strengthens the tools for workers to claim their rights and facilitates access to justice. Employees will also have the right to compensation for discrimination in pay.

The proposal falls within the Commission Gender Equality Strategy 2020-2025.

Social policy

Entry into force: 8 December 2020

Consolidated version adopted on 22 March 2021.

EU persons, companies incorporated or constituted under the law of an EU Member State, non-EU companies in respect of any business done in whole or in part within the EU.

In December 2020, the Council adopted the EU’s first global human rights sanctions regime. This new regime allows the EU to impose travel bans and financial sanctions on individuals, entities and bodies (including state and non-state actors) responsible for, involved in or associated with serious human rights violations and abuses worldwide, irrespective of where they occurred.

Non-financial reporting

A draft legislative proposal has been adopted by the Commission on 21 April 2021.
The CSRD has been adopted by EU Parliament on 10 Nov and Council should adopt on 28 Nov. Publication in EUOJ should follow and CSRD should enter into force 20 days after publication in OJ

The rules will start applying between 2024 and 2028:

• From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the non-financial reporting directive, with reports due in 2025;
• From 1 January 2025 for large companies that are not presently subject to the non-financial reporting directive (with more than 250 employees and/or €40 million in turnover and/or €20 million in total assets), with reports due in 2026;
• From 1 January 2026 for listed SMEs and other undertakings (small and non-complex credit institutions and captive insurance undertakings), with reports due in 2027. SMEs can opt-out until 2028.

Listed companies, with the exception of listed micro-enterprises.

The CSRD Directive addresses shortcomings in existing legislation on the disclosure of non-financial information (NFRD), perceived as largely insufficient and unreliable. The CSRD introduces more detailed reporting requirements on companies’ impact on the environment, human rights and social standards, based on common criteria in line with EU’s climate goals. The Commission will adopt the first set of standards by June 2023.

To ensure companies are providing reliable information, they will be subject to independent auditing and certification. Financial and sustainability reporting will be on an equal footing and investors will have comparable and reliable data. Digital access to sustainability information will also have to be guaranteed.

Social policy

EC’s legislative proposal adopted on 23 February 2022.

The proposal will be presented to the European Parliament and the Council for approval. Once adopted, Member States will have two years to transpose the Directive into national law.

EU companies:

• Group 1: all EU limited liability companies of substantial size and economic power (with 500+ employees and EUR 150 million+ in net turnover worldwide).
• Group 2: Other limited liability companies operating in defined high impact sectors, which do not meet both Group 1 thresholds, but have more than 250 employees and a net turnover of EUR 40 million worldwide and more. For these companies, rules will start to apply 2 years later than for group 1.

Non-EU companies active in the EU with turnover threshold aligned with Group 1 and 2, generated in the EU.

The Draft Directive sets out duties for companies in scope to undertake due diligence for actual or potential adverse human rights and environmental impacts in their own operations, those of their subsidiaries and in their value chains (direct and indirect established business relationships).

In addition, group 1 companies need to have a plan to ensure that their business strategy is compatible with limiting global warming to 1.5 °C in line with the Paris Agreement.

The proposal also includes provisions in relation to voluntary model contractual clauses, public support by Member States, and directors' duties.

National administrative authorities appointed by Member States will be responsible for supervising these new rules and may impose fines in case of non-compliance. In addition, victims will have the opportunity to take legal action for damages that could have been avoided with appropriate due diligence measures.

Social Policy

In force (Member States are required to implement the Directive)

Any member State

Under the new rules, workers are, inter alia, entitled to greater predictability regarding assignments and working hours. They will also be entitled to receive timely and more complete information about essential aspects of their work, such as their place of work and pay. The new rules will particularly benefit some 2-3 million workers with precarious forms of employment.

Social policy

In force

All employers, defined as (i) the party towards whom another person is obliged to perform work pursuant to a contract of employment or an appointment under public law, (ii) the party to whom another person is made available for performing work, and (iii) a party, who causes another person to perform work under his authority. The scope includes the performance of work within the exclusive economic zone; activities of pupils and students in educational establishments comparable to employment in professional practice; employment outside the Netherlands by persons employed on board of Dutch sea-going vessels; and employment outside the Netherlands by persons employed on board of aircraft for an employer established in the Netherlands.

The Working Conditions Act – together with the Decree and the Regulation - contains rules for employers and employees to promote the health, safety and well-being of employees.

The Working Conditions Act is a framework act. This means that there are no concrete rules, but general provisions about the occupational health and safety policy in companies. It states that the employer and employees must work together to improve working conditions. The employer is ultimately responsible, but the employee also has the obligation to observe his own health and safety by, for example, using work equipment and protective equipment correctly.

More concrete rules per type of work or per sector can be found in the Decree and the Regulation.

Find out more:

Working Conditions Act  

Working Conditions Decree  

Working Conditions Regulation 

Environmental policy

In force

The Government / Setting national climate protection targets

The Climate Act stipulates that the Netherlands must emit 49% fewer greenhouse gases in 2030 and 95% less in 2050 compared to 1990. The Netherlands converts greenhouse gases other than CO2 into CO2 equivalents. Another aim is to increase the share of renewable energy to 100 percent by 2050.

The government must draw up a Climate Plan every five years, setting out the main points of climate policy for the next ten years (the Climate Plan is mentioned above under "Voluntary Standards").

Environmental policy

In force – will soon be replaced by the Environmental Act ( "Omgevingswet")

All companies and citizens

The most important chapters from the Environmental Protection Act:

• environmental policies and programs (chapter 4)
• environmental quality requirements (chapter 5)
• environmental impact assessments (chapter 7)
• establishments (chapter 8)
• waste (chapter 10)
• sound (chapter 11)
• reporting, registration and measurement obligations (chapter 12)
• procedures for permits and exemptions (chapter 13)

This Act for instance requires companies to have permits when conducting projects that might affect the environment.

Financial reporting

Entry into force: 10 December 2019

Benchmark administrators

The Benchmark Regulations require benchmark administrators to disclose ESG factors, and include disclosure in their benchmark statement on how their methodology aligns with the target of carbon emissions reduction or attains the objectives of the Paris Agreement.

Taxonomy, financial reporting and non-financial reporting

Applies from 1 January 2022.

The following delegated acts were approved by the Commission for scrutiny by the co-legislators:

Delegated Act on sustainable activities for climate change adaptation and mitigation objectives

Delegated act supplementing Article 8

• Financial market participants who offer financial products and market these as environmentally sustainable
• Organisations covered by the NFRD and SFDR

The Taxonomy Regulation sets out an EU-wide framework and classification system according to which investors and businesses can assess whether certain economic activities are environmentally sustainable.

The Taxonomy Regulation introduces amendments to disclosure requirements under SFDR and NFRD.

Financial reporting

In force

EU Institutions and national governments

The European Climate Law writes into law the goal set out in the European Green Deal – for Europe’s economy and society to become climate-neutral by 2050.

Taxonomy, financial reporting and non-financial reporting

Entry into force: 29 December 2021.

Application from 1 January 2022.

1. Financial market participants who offer financial products and market these as environmentally sustainable
2. Organisations covered by the NFRD and SFDR

The Net Zero Investment Framework provides recommended methodologies and actions which asset owners and asset managers should utilise to assess and undertake alignment of their portfolios towards net zero, in order to maximise their contribution to the decarbonisation of the real economy. The Framework puts forward metrics to assess investments and measure alignment, and requires investors to set concrete targets at portfolio and asset level.

The key recommendations revolve around governance and strategy, portfolio reference targets, strategic asset allocation, asset class alignment, policy advocacy, and stakeholder and market engagement.

Investors are encouraged to publish information annually on how they consider their targets to be aligned to a pathway to achieve global net zero emissions by 2050, and the strategy and actions they have implemented across all asset classes, and performance against the objectives and targets over time.

Financial reporting

Entry into force: 23 December 2020

Benchmark administrators

The three Delegated Acts required by the Low Carbon Benchmarks Regulation and adopted by the EC, set out (i) the environmental, social, and governance (ESG) disclosure requirements for benchmarks provided in accordance with the EU Benchmarks Regulation (Regulation (EU) 2016/1011), and (ii) sustainability criteria in order for a benchmark to qualify as an EU Climate Transition Benchmark or EU Paris-aligned Benchmark. Those are:

Commission Delegated Regulation (EU) 2020/1816

Commission Delegated Regulation (EU) 2020/1817

Commission Delegated Regulation (EU) 2020/1818

Environmental policy

Entry into force : Member States shall bring into force the provisions of the Directive by 10 March 2020

Any EU Member State

This Directive presents some amendments to Directives 2010/31 and 2012/27 to better address and ensure that sustainability requirements are met in building construction activities, new building characteristics and building energy performance aspects.

Social policy, due diligence obligation

Entry into force: 8 June 2017.

New consolidated version adopted on 19 November 2020.

Application: 1 January 2021

EU-based importers of tin, tantalum, tungsten and gold

The regulation requires EU importers of the four minerals – tin, tantalum, tungsten and gold – to ensure they use only responsible and conflict-free sources.

They need to comply with, and report on, supply chain due diligence obligations if the minerals originate (even potentially) from conflict-affected and high-risk areas.

Companies from outside the EU are also impacted as EU-companies will need to make sure they source from responsible smelters and refiners.

Social Policy, Corporate Governance Policy

In force

It differs per article. Article 2:142b: companies whose shares or depositary receipts for shares are admitted to trading on a regulated market.

Articles 2:166 and 2:276: companies that have not met at least two of the following requirements on two consecutive balance sheet dates:

• the value of assets does not exceed €20.000.000,
• the net turnover for the financial year does not exceed €40.000.000,
• the average number of employees for the financial year is less than 250.

This amendment of Book 2 of the Dutch Civil Code, requires large public (limited) companies and large private (limited) companies to formulate appropriate and ambitious goals in the form of target figures for the ratio between men and women in the management board, the supervisory board and the sub-top management. The company is also required to draw up a plan to achieve the goals, which must be reported to the Socio-Economic Council and the management report ("bestuursverslag") shall include a description thereof.

This amendment also requires that the composition of the supervisory board of listed companies must be balanced. A so-called women's quota or growth quota applies to this: at least one third of the supervisory board consists of men and one third of women. An appointment that does not make the distribution more balanced is null and void. The vacancy will then remain open.

Social policy

Consultation phase – likely to be implemented in 2023/2024

Chapter 1: Legal duty of care

All companies, that know or can reasonably suspect that its activities may have adverse effects on human rights, labor rights or the environment in a country outside the Netherlands

Chapter 2: Duty of appropriate care

Companies that perform their activities in a country outside the Netherlands and on the balance sheet date, at least two of the following three criteria exceeds:

1. balance sheet total: € 20 million;
2. net turnover: € 40 million
3. average number of employees during the financial year: 250 employees.

This Act places a broad duty of care on companies, with the goal to prevent and address actual and potential adverse consequences of the activities of companies abroad (e.g. in the sense of their supply chains), in particular with regard to human rights, labour rights and the environment. It tries to reach this goal by placing this duty of care on and making compliance with the OECD Guidelines mandatory for multinational companies.

Companies must exercise due diligence in their supply chains to assess, identify, reduce and prevent the actual and potential adverse consequences thereof their actions. Such adverse consequences take place, for example, when in the supply chain use is made of restrictions on the freedom of association and collective bargaining, or when discrimination, forced labor, child labor, unsafe working conditions, slavery, exploitation or environmental damage takes place.  

Non-financial reporting

In force

Public interest entities (i) with an average number of  more than 500 employees over the financial year, and (ii) that have not met one of the below requirements on two consecutive balance sheet dates:

• the value of the assets does not exceed € 20.000,000,

the net turnover for the financial year does not exceed € 40.000,000.

Implementation of EU Directive 2014/95/EU. According to this Decree, these public interest entities are obliged to include information about their performance or impact on the  environment, human resources, social aspects, human rights and prevention of bribery and extortion in their annual report.

Prudential measures

Entry into force: 30 December 2019

Institutions subject to supervision by the EBA, EIOPA and ESMA

The Omnibus Regulation establishes ESG-related factors as part of the EBA, EIOPA and ESMA’s “scope of action” and assigns each with the task of monitoring and assessing ESG-related developments in their areas of competence.

The Omnibus Regulation also modifies Article 23 (1) of each regulation, requiring each authority to develop criteria for the identification and measurement of systemic risk, including environmental risks, and Article 29 (1) of each regulation, requiring each authority to put in place a monitoring system to assess material ESG-related risks, taking into account the Paris Agreement.

Prudential measures

In progress

Report on Environmental, Social and Governance (ESG) risks management and supervision published on 23 June 2021

Credit institutions and investment firms

Article 98(8) of Directive 2013/36/EU (“CRD IV”) and Article 35 of Directive (EU) 2019/2034 (“IFD”) requires the EBA to develop a report providing uniform definitions of ESG risks, and appropriate qualitative and quantitative criteria for the assessment of the impact of ESG risks on the financial stability of institutions in the short, medium and long term. They also mandate the EBA to assess whether to include ESG risks in its annual prudential supervisory review and evaluation process undertaken by Member State prudential regulators (“SREP”).

Prudential measures

In progress

Report on Environmental, Social and Governance (ESG) risks management and supervision published on 24 October 2022

Credit institutions and investment firms

In June 2021, the EBA published a Report on the management and supervision of ESG risks for credit institutions and investment firms in accordance with Article 98(8) of Directive 2013/36/EU (Capital Requirements Directive - CRD) and Article 35 Directive (EU) 2019/2034 (Investment Firms Directive - IFD). 
Following the publication of the EBA Guidelines on SREP for investment firms, the Report published on 24 Oct 2022 fulfils the mandate under point (d) of Article 35 of the IFD and complements the Report on the management and supervision of ESG risks for credit institutions and investment firms, published in June 2021. 

Point (d) of Article 35 of IFD mandates the EBA to develop a report providing the criteria, parameters and metrics by means of which supervisors and investment firms can assess the impact of short, medium and long-term ESG risks for the purposes of the supervisory review and evaluation process. 
The Report has been transmitted to the EU Parliament, the Council and the European Commission. 

Non-financial reporting

A draft legislative proposal has been adopted by the Commission on 21 April 2021.
The CSRD has been adopted by EU Parliament on 10 Nov and Council should adopt on 28 Nov. Publication in EUOJ should follow and CSRD should enter into force 20 days after publication in OJ

The rules will start applying between 2024 and 2028:

• From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the non-financial reporting directive, with reports due in 2025;
• From 1 January 2025 for large companies that are not presently subject to the non-financial reporting directive (with more than 250 employees and/or €40 million in turnover and/or €20 million in total assets), with reports due in 2026;
• From 1 January 2026 for listed SMEs and other undertakings (small and non-complex credit institutions and captive insurance undertakings), with reports due in 2027. SMEs can opt-out until 2028.

Listed companies, with the exception of listed micro-enterprises.

The CSRD Directive addresses shortcomings in existing legislation on the disclosure of non-financial information (NFRD), perceived as largely insufficient and unreliable. The CSRD introduces more detailed reporting requirements on companies’ impact on the environment, human rights and social standards, based on common criteria in line with EU’s climate goals. The Commission will adopt the first set of standards by June 2023.

To ensure companies are providing reliable information, they will be subject to independent auditing and certification. Financial and sustainability reporting will be on an equal footing and investors will have comparable and reliable data. Digital access to sustainability information will also have to be guaranteed.

Corporate governance policy and financial and non-financial disclosures

In force since 2013

New consolidated version adopted on 30 September 2021.

Large institutions with securities traded on a regulated market of any EU Member State

Regulation (EU) 2019/876 amending Capital Requirements Regulation includes under article 449a the requirement to disclose prudential information on environmental, social and governance risks, including transition and physical risk, addressed to large institutions with securities traded on a regulated market of any Member State. These disclosure requirements are applicable from June 2022 on an annual basis during the first year and biannually thereinafter. 

Non-financial reporting

Voluntary standards

Financial institutions such as pension funds and asset managers

The Net Zero Investment Framework provides recommended methodologies and actions which asset owners and asset managers should utilise to assess and undertake alignment of their portfolios towards net zero, in order to maximise their contribution to the decarbonisation of the real economy. The Framework puts forward metrics to assess investments and measure alignment, and requires investors to set concrete targets at portfolio and asset level.

The key recommendations revolve around governance and strategy, portfolio reference targets, strategic asset allocation, asset class alignment, policy advocacy, and stakeholder and market engagement.

Investors are encouraged to publish information annually on how they consider their targets to be aligned to a pathway to achieve global net zero emissions by 2050, and the strategy and actions they have implemented across all asset classes, and performance against the objectives and targets over time.

Financial and non-financial reporting

Voluntary standards

Asset managers

The code focuses on socially responsible investment (SRI) funds distributed publicly in Europe and has been designed to cover a range of assets classes, such as equity and fixed income.

The principle driving the Code is that asset manager signatories should be open and honest, and disclose accurate, adequate and timely information to enable stakeholders, in particular retail investors, to understand the policies and practices of a given SRI fund.

Signatories need to make several commitments such as respecting the order and exact wording of the questions of the code, updating responses at least on an annual basis, and making the responses to the code easily accessible from the fund’s and/or fund manager’s website.

Sustainability standards

Voluntary standards

All companies

The Commission adopted on March 2022 draft revised Guidelines on the assessment of Horizontal Agreements. Such guidelines will enter into force on 1 January 2023. Chapter 9 of the guidelines concerns “sustainability agreements”. According to chapter 9, agreements which meet certain standards of sustainability can outbalance negative effects under a competition standpoint and can thus be exempted from the application of competition rules.

Corporate Governance

In force

EU financial services firms

The EU has introduced amendments to various Delegated Acts (see link) which will integrate sustainability issues into a number of key financial services Directives.

Entities will be:

• Required to integrate sustainability factors into their assessment of client suitability for certain financial products and when undertaking product approval of instruments.
• Subject to new obligations to integrate sustainability risks into risk management and conflict procedures
• Subject to new fiduciary duties, making sure that they encompass sustainability risks such as the impact of climate change.
   

Support of SMEs and organisations projects

Entry into force: 26 March 2021.

Application: 1 January 2021

EU SMEs and organisations with difficulties when accessing finance because of their perceived high risk (in particular after COVID-19 crisis).

This Regulation establishes the InvestEU Fund, which shall provide for an EU guarantee to support financing and investment operations carried out by the implementing partners that contribute to objectives of the Union’s internal policies. The Regulation also establishes an advisory support mechanism to provide support for the development of investable projects and access to financing and to provide related capacity building assistance.