The EU Sustainable Taxonomy is an important market transparency tool. It operates as a classification system, defining criteria for economic activities aligned with the 2030 climate and energy targets and the European Green Deal. The EU Taxonomy provides a clear definition of sustainable economic activity, protecting financial and non-financial companies from greenwashing and enabling them to invest directly in what is commonly understood as sustainable. 

However, the Taxonomy has not yet incorporated restrictions, nor incentives, in connection to specific economic actions (e.g., capital requirements). It currently rather focuses on a company's impact on sustainability goals. Controversially, the final text classifies nuclear energy and gas as sustainable but has not (yet) included activities relating to chemicals, automotive manufacturing, and mechanical engineering. 

Following the Commission's proposal and the co-legislators' final agreement, the Taxonomy regulation entered into force in July 2020 and has since been amended several times through delegated acts. Deutsche Börse Group welcomed a common classification system and reiterated the need for global interoperability between Sustainable Taxonomy systems to avoid creating an uneven playing field. 

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

The Corporate Sustainability Reporting Directive (CSRD) requires all large companies and all listed companies (except listed micro-enterprises) to disclose information on the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment. The CSRD ensures that investors and other stakeholders have access to information relevant to assessing the sustainability performance of companies and the financial risks and opportunities arising from sustainability issues.

The Directive was adopted and published in the Official Journal of the EU in December 2022, after which some European Sustainability Reporting Standards (ESRS) were adopted and published. In 2024, co-legislators twice struck a political deal postponing adoption deadlines for certain ESRS.

On February 26, 2025, the Commission presented an "Omnibus" simplification package aimed at simplifying sustainability reporting requirements, reducing administrative burdens for companies, and enhancing competitiveness. In this context, the ESRS are also being revised and simplified. Regarding the CSRD, the Commission proposes, among other things, a reduction in the scope of application, reliefs especially for SMEs, and a reduction in reporting obligations under the EU taxonomy. The proposals are now being discussed by the European Parliament and the Council.

Deutsche Börse Group has always supported the adoption of coherent reporting standards that extend beyond climate and provide a level playing field regardless of the form of financing.
For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

The EU Green Bond Standard (GBS) was introduced as an important milestone towards meeting the financing needs of the low-carbon transition and sets the standard for green bonds issuance. The standard is, however, voluntary and relies on the criteria set by the EU Sustainable Taxonomy to define economic activities which are considered green and aligned with sustainable practices. Building on the Taxonomy, GBS establishes external review of companies carrying out pre- and post-issuance at the European level, with the European Securities and Markets Authority (ESMA) mandated to supervise these external reviewers, creating an efficient green-issuance ecosystem.

Following a legislative proposal by the Commission, joint legislators reached a political agreement on the final wording of the EU Green Bond Standard, which was published in the Official Journal of the EU in November 2023 and subsequently entered into force by the end of the same year. The regulation is applicable since December 21, 2024. Deutsche Börse Group has positioned itself as one of the leading green/ESG venues in Europe. We have always advocated for legal certainty and prevention of greenwashing to create market confidence and tradability of green/ESG instruments.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

The Sustainable Finance Disclosure Regulation (SFDR) imposes mandatory ESG disclosure obligations for asset managers and other financial market participants. The SFDR was introduced as a part of a package of legislative measures alongside the EU Taxonomy, with the aim of creating a level playing field for financial market participants and asset managers on transparency in relation to sustainability risks and consideration of adverse sustainability impacts in their investment processes.

The SFDR introduced requirements for Alternative Investment Fund Managers (AIFMs) and UCITS managers to provide standardized disclosures on how ESG factors are integrated at the fund and product level. A significant portion of all the requirements applies to all asset managers, irrespective of whether they express ESG or sustainability focus, increasing reliability and trust in the markets.
Following adoption by the co-legislators, the SFDR came into force in the beginning of 2021 and has been fully applicable since the beginning of 2023.

Deutsche Börse Group is not itself in scope of the SFDR but has always been at the clients’ disposal, assisting with reporting solutions and analytics and ratings.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.