European Parliament 2014-2019

Committee on Economic and Monetary Affairs Committee on the Environment, Public Health and Food Safety

2018/0178(COD)

17.12.2018

AMENDMENTS 124 - 385

Draft report Bas Eickhout, Sirpa Pietikäinen (PE630.512v01-00)

Establishment of a framework to facilitate sustainable investment

Proposal for a regulation (COM(2018)0353 – C8-0207/2018 – 2018/0178(COD))

AM\1172566EN.docx PE632.153v01-00

EN United in diversity EN AM_Com_LegReport

PE632.153v01-00 2/162 AM\1172566EN.docx EN Amendment 124 Fulvio Martusciello

Proposal for a regulation Title 1

Text proposed by the Commission Amendment

Proposal for a Proposal for a REGULATION OF THE EUROPEAN REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL PARLIAMENT AND OF THE COUNCIL on the establishment of a framework to on the establishment of a framework to facilitate sustainable investment facilitate sustainable finance (Text with EEA relevance) (Text with EEA relevance)

Or. en

Amendment 125 Mireille D'Ornano

Proposal for a regulation Recital 1

Text proposed by the Commission Amendment

(1) Article 3(3) of the Treaty on (1) Article 3(3) of the Treaty on European Union aims to establish an European Union aims to establish an internal market that works for the internal market that works for the sustainable development of Europe, based sustainable development of Europe, based among others on balanced economic among others on balanced economic growth and a high level of protection and growth and a high level of protection and improvement of the quality of the improvement of the quality of the environment. environment. The results achieved in terms of both economic growth and environmental protection are very far removed from the objectives referred to here.

Or. fr

Amendment 126 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 1

AM\1172566EN.docx 3/162 PE632.153v01-00 EN Text proposed by the Commission Amendment

(1) Article 3(3) of the Treaty on (1) Article 3(3) of the Treaty on European Union aims to establish an European Union aims to establish an internal market that works for the internal market that works for the sustainable development of Europe, based sustainable development of Europe, based among others on balanced economic among others on balanced economic growth and a high level of protection and growth, social progress and a high level of improvement of the quality of the protection and improvement of the quality environment. of the environment.

Or. en

Amendment 127 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 3 a (new)

Text proposed by the Commission Amendment

(3 a) In November 2017, the European Parliament, the Council and the Commission proclaimed and signed the European Pillar of Social Rights, in favour of a Europe that tackles unemployment, poverty and discrimination, giving equal opportunities to the young and vulnerable. A comprehensive and deep implementation of the pillar can be facilitated by making financial flows consistent with such a pathway.

Or. en

Amendment 128 Mireille D'Ornano

Proposal for a regulation Recital 4

Text proposed by the Commission Amendment

(4) Sustainability and the transition to a (4) Sustainability and the transition to a low-carbon and climate resilient, more low-carbon and climate resilient, more resource-efficient and circular economy are resource-efficient and circular economy are PE632.153v01-00 4/162 AM\1172566EN.docx EN key in ensuring long-term competitiveness key in ensuring long-term competitiveness of the Union’s economy. Sustainability has of the Union’s economy. Sustainability has long been at the heart of the European long been at the heart of the European Union project and the Treaties give project and the Treaties give recognition to recognition to its social and environmental its social and environmental dimensions, dimensions. but it remains wishful thinking, considering how disappointing its results are from a social and environmental point of view.

Or. fr

Amendment 129 Luigi Morgano

Proposal for a regulation Recital 4 a (new)

Text proposed by the Commission Amendment

(4 a) The High-Level Task force on Investing in Social Infrastructure in Europe published in January 2018 its Report, estimating the minimum gap in social infrastructure investment in the EU at EUR 100-150 billion per year, and a total gap of over EUR 1.5 trillion in 2018- 2030.

Or. en

Amendment 130 Luke Ming Flanagan

Proposal for a regulation Recital 4 a (new)

Text proposed by the Commission Amendment

(4 a) Major trade deals such as TTIP, CETA, JEFTA etc and the resultant increased mass transit of goods can have a major negative environmental impact;

Or. en

AM\1172566EN.docx 5/162 PE632.153v01-00 EN Amendment 131 Stefan Gehrold

Proposal for a regulation Recital 5

Text proposed by the Commission Amendment

(5) In December 2016, the Commission (5) In December 2016, the Commission mandated a High-Level Expert Group to mandated a High-Level Expert Group to develop an overarching and comprehensive develop an overarching and comprehensive Union strategy on sustainable finance. The Union strategy on sustainable finance. The report of the High-Level Expert Group report of the High-Level Expert Group published on 31 January 201824calls for the published on 31 January 201824 calls for creation of a technically robust the creation of a technically robust classification system at Union level to classification system at Union level to establish clarity on which activities are establish clarity on which activities are ‘green’ or ‘sustainable’, starting with ‘green’ or ‘sustainable’. Activities which climate change mitigation. help to lessen the human influence on climate change should be classified first. ______24 EU High-Level Expert Group on 24 EU High-Level Expert Group on Sustainable Finance Final Report, Sustainable Finance Final Report, Financing a Sustainable European Financing a Sustainable European Economy, available at: Economy, available at: https://ec.europa.eu/info/sites/info/files/180 https://ec.europa.eu/info/sites/info/files/180 131-sustainable-finance-final- 131-sustainable-finance-final- report_en.pdf. report_en.pdf.

Or. de

Amendment 132 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 6

Text proposed by the Commission Amendment

(6) In March 2018, the Commission (6) In March 2018, the Commission published its Action Plan 'Financing published its Action Plan 'Financing Sustainable Growth'25 setting up an Sustainable Growth'25 setting up an ambitious and comprehensive strategy on ambitious and comprehensive strategy on sustainable finance. One of the objectives sustainable finance. One of the objectives set out in that Action Plan is to reorient set out in that Action Plan is to reorient capital flows towards sustainable capital flows towards sustainable investment in order to achieve sustainable investment in order to achieve sustainable and inclusive growth. The establishment of and inclusive growth. The establishment of PE632.153v01-00 6/162 AM\1172566EN.docx EN a unified classification system for a unified classification system for sustainable activities is the most important sustainable activities and of indicators for and urgent action envisaged by the Action identifying the degree of sustainability of Plan. The Action Plan recognises that the activities are the most important and shift of capital flows towards more urgent action envisaged by the Action Plan. sustainable activities has to be underpinned The Action Plan recognises that the shift of by a shared understanding of what capital flows towards more sustainable 'sustainable' means. As a first step, clear activities has to be underpinned by a guidance on activities qualifying as shared, holistic understanding of the contributing to environmental objectives, impact of economic activities and should help inform investors about the investments in terms of sustainability. As investments that fund environmentally a first step, clear guidance on activities sustainable economic activities. Further qualifying as contributing to environmental guidance on the activities contributing to objectives, should help inform investors other sustainability objectives, including about the investments that fund social objectives, may be developed at a environmentally sustainable economic later stage. activities. In parallel, further guidance on the activities contributing to social objectives, are developed, recognising that the UN Sustainable Development Goals (SDG) cover all three pillars of sustainability: environmental, social and economic/governance. This also reflects the European Council conclusions of 20 June 2017 that confirmed the commitment of the Union and the Member States to the implementation of the 2030 Agenda in full, coherent, comprehensive, integrated and effective manner. ______25 COM(2018) 97 final. 25 COM(2018) 97 final.

Or. en

Justification

Achieving the SDGs in the European Union requires the channelling of capital flows towards sustainable investments. offering financial products and services which pursue socially sustainable objectives is an effective way of channelling private investments into sustainable activities. To achieve this aim, the SDGs and the European Pillar of Social rights offer a rich and useful basis for building a social taxonomy that complements a taxonomy built on environmental objectives. The SDGs are built on the premise that the environment, society and economic development are interlinked and must be addressed in an integrated manner. Thus, developing taxonomies in parallel woul provide the opportunity to explore those intelinkages

Amendment 133 AM\1172566EN.docx 7/162 PE632.153v01-00 EN Elena Gentile

Proposal for a regulation Recital 6

Text proposed by the Commission Amendment

(6) In March 2018, the Commission (6) In March 2018, the Commission published its Action Plan 'Financing published its Action Plan 'Financing Sustainable Growth'25 setting up an Sustainable Growth'25 setting up an ambitious and comprehensive strategy on ambitious and comprehensive strategy on sustainable finance. One of the objectives sustainable finance. One of the objectives set out in that Action Plan is to reorient set out in that Action Plan is to reorient capital flows towards sustainable capital flows towards sustainable investment in order to achieve sustainable investment in order to achieve sustainable and inclusive growth. The establishment of and inclusive growth. The establishment of a unified classification system for a unified classification system and of sustainable activities is the most important indicators for identifying sustainable and urgent action envisaged by the Action activities are the most important and Plan. The Action Plan recognises that the urgent actions envisaged by the Action shift of capital flows towards more Plan. The Action Plan recognises that the sustainable activities has to be underpinned shift of capital flows towards more by a shared understanding of what sustainable activities has to be underpinned 'sustainable' means. As a first step, clear by a shared, holistic understanding of guidance on activities qualifying as economic activities and investments on contributing to environmental objectives, environmental and social sustainability should help inform investors about the and resource efficiency. As a first step, investments that fund environmentally clear guidance on activities qualifying as sustainable economic activities. Further contributing to environmental objectives, guidance on the activities contributing to should help inform investors about the other sustainability objectives, including investments that sustainable economic social objectives, may be developed at a activities. Further guidance on the later stage. activities contributing to other sustainability objectives, including social objectives, may be developed at a later stage. ______25 COM(2018) 97 final. 25 COM(2018) 97 final.

Or. en

Amendment 134 Anne Sander

Proposal for a regulation Recital 6

PE632.153v01-00 8/162 AM\1172566EN.docx EN Text proposed by the Commission Amendment

(6) In March 2018, the Commission (6) In March 2018, the Commission published its Action Plan 'Financing published its Action Plan 'Financing Sustainable Growth'25 setting up an Sustainable Growth'25 setting up an ambitious and comprehensive strategy on ambitious and comprehensive strategy on sustainable finance. One of the objectives sustainable finance. One of the objectives set out in that Action Plan is to reorient set out in that Action Plan is to reorient capital flows towards sustainable capital flows towards sustainable investment in order to achieve sustainable investment in order to achieve sustainable and inclusive growth. The establishment of and inclusive growth. The establishment of a unified classification system for a unified classification system and sustainable activities is the most important indicators assessing the carbon footprint and urgent action envisaged by the Action ifsustainable activities is the most Plan. The Action Plan recognises that the important and urgent action envisaged by shift of capital flows towards more the Action Plan. The Action Plan sustainable activities has to be underpinned recognises that the shift of capital flows by a shared understanding of what towards more sustainable activities has to 'sustainable' means. As a first step, clear be underpinned by a shared understanding guidance on activities qualifying as of what 'sustainable' means. As a first step, contributing to environmental objectives, clear guidance on activities qualifying as should help inform investors about the contributing to environmental objectives, investments that fund environmentally should help inform investors about the sustainable economic activities. Further investments that fund environmentally guidance on the activities contributing to sustainable economic activities. Further other sustainability objectives, including guidance on the activities contributing to social objectives, may be developed at a other sustainability objectives, including later stage. social objectives, may be developed at a later stage. ______25 COM(2018) 97 final. 25 COM(2018) 97 final.

Or. en

Amendment 135 Dimitrios Papadimoulis

Proposal for a regulation Recital 6

Text proposed by the Commission Amendment

(6) In March 2018, the Commission (6) In March 2018, the Commission published its Action Plan 'Financing published its Action Plan 'Financing Sustainable Growth'25 setting up an Sustainable Growth'25 setting up an ambitious and comprehensive strategy on ambitious and comprehensive strategy on sustainable finance. One of the objectives sustainable finance. One of the objectives set out in that Action Plan is to reorient set out in that Action Plan is to reorient AM\1172566EN.docx 9/162 PE632.153v01-00 EN capital flows towards sustainable capital flows towards sustainable investment in order to achieve sustainable investment in order to achieve sustainable and inclusive growth. The establishment of and inclusive growth. The establishment of a unified classification system for a unified classification system for sustainable activities is the most important sustainable activities is the most important and urgent action envisaged by the Action and urgent action envisaged by the Action Plan. The Action Plan recognises that the Plan. The Action Plan recognises that the shift of capital flows towards more shift of capital flows towards more sustainable activities has to be underpinned sustainable activities has to be underpinned by a shared understanding of what by a shared understanding of what 'sustainable' means. As a first step, clear 'sustainable' means. As a first step, clear guidance on activities qualifying as guidance on activities qualifying as contributing to environmental objectives, contributing to environmental objectives, should help inform investors about the should help inform investors about the investments that fund environmentally investments that fund environmentally sustainable economic activities. Further sustainable economic activities. Further guidance on the activities contributing to guidance on the activities contributing to other sustainability objectives, including other sustainability objectives, including social objectives, may be developed at a social and governance objectives, should later stage. be developed soon afterwards at a later stage. ______25 COM(2018) 97 final. 25 COM(2018) 97 final.

Or. en

Amendment 136 Paul Tang, Pervenche Berès

Proposal for a regulation Recital 6

Text proposed by the Commission Amendment

(6) In March 2018, the Commission (6) In March 2018, the Commission published its Action Plan 'Financing published its Action Plan 'Financing Sustainable Growth'25 setting up an Sustainable Growth'25 setting up an ambitious and comprehensive strategy on ambitious and comprehensive strategy on sustainable finance. One of the objectives sustainable finance. One of the objectives set out in that Action Plan is to reorient set out in that Action Plan is to reorient capital flows towards sustainable capital flows towards sustainable investment in order to achieve sustainable investment in order to achieve sustainable and inclusive growth. The establishment of and inclusive growth. The establishment of a unified classification system for a unified classification system for sustainable activities is the most important sustainable activities is the most important and urgent action envisaged by the Action and urgent action envisaged by the Action Plan. The Action Plan recognises that the Plan. The Action Plan recognises that the shift of capital flows towards more shift of capital flows towards more PE632.153v01-00 10/162 AM\1172566EN.docx EN sustainable activities has to be underpinned sustainable activities has to be underpinned by a shared understanding of what by a shared understanding of what 'sustainable' means. As a first step, clear 'sustainable' means. As a first step, clear guidance on activities qualifying as guidance on activities qualifying as contributing to environmental objectives, contributing to environmental objectives, should help inform investors about the should help inform investors about the investments that fund environmentally investments that fund environmentally sustainable economic activities. Further sustainable economic activities. Further guidance on the activities contributing to guidance on the activities contributing to other sustainability objectives, including other sustainability objectives, including social objectives, may be developed at a social objectives, should be developed in later stage. parallel. ______25 COM(2018) 97 final. 25 COM(2018) 97 final.

Or. en

Amendment 137 Mireille D'Ornano

Proposal for a regulation Recital 6

Text proposed by the Commission Amendment

(6) In March 2018, the Commission (6) In March 2018, the Commission published its Action Plan 'Financing published its Action Plan 'Financing Sustainable Growth'25setting up an Sustainable Growth'25 setting up a strategy ambitious and comprehensive strategy on on sustainable finance. One of the sustainable finance. One of the objectives objectives set out in that Action Plan is to set out in that Action Plan is to reorient reorient capital flows towards sustainable capital flows towards sustainable investment in order to achieve sustainable investment in order to achieve sustainable and inclusive growth. The establishment of and inclusive growth. The establishment of a unified classification system for a unified classification system for sustainable activities is the most important sustainable activities is the most important and urgent action envisaged by the Action and urgent action envisaged by the Action Plan. The Action Plan recognises that the Plan. The Action Plan recognises that the shift of capital flows towards more shift of capital flows towards more sustainable activities has to be underpinned sustainable activities has to be underpinned by a shared understanding of what by a shared understanding of what 'sustainable' means. As a first step, clear 'sustainable' means. As a first step, clear guidance on activities qualifying as guidance on activities qualifying as contributing to environmental objectives, contributing to environmental objectives, should help inform investors about the should help inform investors about the investments that fund environmentally investments that fund environmentally sustainable economic activities. Further sustainable economic activities. Further guidance on the activities contributing to guidance on the activities contributing to other sustainability objectives, including AM\1172566EN.docx 11/162 PE632.153v01-00 EN other sustainability objectives, including social objectives, may be developed at a social objectives, may be developed at a later stage. later stage. ______25 COM(2018) 97 final. 25 COM(2018) 97 final.

Or. fr

Amendment 138 Dimitrios Papadimoulis

Proposal for a regulation Recital 7 a (new)

Text proposed by the Commission Amendment

(7 a) The European Parliament Report on Sustainable Finance of 29 May 2018 lays down essential elements of sustainability indicators and taxonomy, as an incentive for sustainable investment. Consistency should be ensured among relevant legislation.

Or. en

Amendment 139 Dimitrios Papadimoulis

Proposal for a regulation Recital 7 b (new)

Text proposed by the Commission Amendment

(7 b) The importance of maintaining a balance between environmental, social and governance (ESG) dimensions of sustainable finance and investments should be underlined and ensured, enforcing an environmentally sensitive and socially inclusive sustainable growth.

Or. en

PE632.153v01-00 12/162 AM\1172566EN.docx EN Amendment 140 Fulvio Martusciello

Proposal for a regulation Recital 8 a (new)

Text proposed by the Commission Amendment

(8 a) The scale of the challenge requires gradually moving the entire financial system and the economy to a position where they are able to function on a sustainable basis. To that end, sustainable finance needs to be brought into the mainstream, and a consideration needs to be made of sustainability impact in respect of financial products and services marketed as sustainable.

Or. en

Amendment 141 Kay Swinburne

Proposal for a regulation Recital 8 a (new)

Text proposed by the Commission Amendment

(8 a) The scale of the challenge, which entails shifting the entire financial system and economy to a position where they are able to function on a sustainable basis, will require gradual movement and progressive transition over time.

Or. en

Amendment 142 Costas Mavrides

Proposal for a regulation Recital 8 a (new)

Text proposed by the Commission Amendment

(8 a) The scale of the challenge requires

AM\1172566EN.docx 13/162 PE632.153v01-00 EN gradually moving the entire financial system to support the economy to function on a sustainable basis.

Or. en

Amendment 143 Miguel Viegas

Proposal for a regulation Recital 9

Text proposed by the Commission Amendment

(9) Offering financial products which (9) The results announced at the pursue environmentally sustainable recent 24th UN climate conference in objectives is an effective way of Poland (COP24) reflect the failure of all channelling private investments into market instruments implemented to date sustainable activities. National to resolve this climate change emergency. requirements for marketing as sustainable It is accordingly necessary to break with investments financial products and all environmental policy guidelines corporate bonds, in particular imposed until now. A coherent regulatory requirements set out to allow the relevant approach based on the need to ensure market actors to use a national label, aim public ownership of strategic sectors such to enhance investor confidence, to create as energy, banking and transport must be visibility and to address concerns about implemented as a matter of urgency. “greenwashing”. Greenwashing refers to Unless these conditions are met, CO2 the practice of gaining an unfair emissions will clearly never diminish competitive advantage by marketing a sufficiently for achievement of the carbon financial product as environment- neutrality indispensable to the survival of friendly, when in fact it does not meet our planet. basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it is likely that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable. If such national requirements are based on different criteria as to which economic PE632.153v01-00 14/162 AM\1172566EN.docx EN activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportunities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.

Or. pt

Amendment 144 Elisabetta Gardini, Fulvio Martusciello, Alberto Cirio, Aldo Patriciello

Proposal for a regulation Recital 9

Text proposed by the Commission Amendment

(9) Offering financial products which (9) Offering financial products which AM\1172566EN.docx 15/162 PE632.153v01-00 EN pursue environmentally sustainable pursue environmentally and economically objectives is an effective way of sustainable objectives is an effective way channelling private investments into of gradually channelling private sustainable activities. National investments into sustainable activities. requirements for marketing as sustainable National requirements for marketing as investments financial products and sustainable investments financial products corporate bonds, in particular requirements and corporate bonds, in particular set out to allow the relevant market actors requirements set out to allow the relevant to use a national label, aim to enhance market actors to use a national label, aim to investor confidence, to create visibility and enhance investor confidence, to create to address concerns about “greenwashing”. visibility and to address concerns about Greenwashing refers to the practice of “greenwashing”. Currently a few Member gaining an unfair competitive advantage States have in place labelling schemes. by marketing a financial product as They build on different taxonomies environment-friendly, when in fact it does classifying environmentally sustainable not meet basic environmental standards. economic activities. If such national Currently a few Member States have in requirements are based on different criteria place labelling schemes. They build on as to which economic activities qualify as different taxonomies classifying environmentally sustainable, investors will environmentally sustainable economic be discouraged from investing across activities. Given the political commitments borders, due to difficulties in comparing under the Paris Agreement and at Union the different investment opportunities. In level, it is likely that more and more addition, economic operators wishing to Member States will set up labelling attract investment from across the Union schemes or other requirements on market would have to meet different criteria in the actors in respect of financial products or various Member States in order for their corporate bonds marketed as activities to qualify as environmentally environmentally sustainable. In doing so, sustainable for the purposes of the different Member States would be using their own labels. The absence of uniform criteria will national taxonomies for the purposes of thus increase costs and create a significant determining which investments qualify as disincentive for economic operators, sustainable. If such national requirements amounting to an impediment to access are based on different criteria as to which cross-border capital markets for sustainable economic activities qualify as investments. The barriers to access to environmentally sustainable, investors will cross-border capital markets for the be discouraged from investing across purposes of raising funds for sustainable borders, due to difficulties in comparing projects are expected to grow further. The the different investment opportunities. In criteria for determining whether an addition, economic operators wishing to economic activity is environmentally and attract investment from across the Union economically sustainable should therefore would have to meet different criteria in the gradually be harmonised at Union level, in various Member States in order for their order to remove obstacles to the activities to qualify as environmentally functioning of the internal market and sustainable for the purposes of the different prevent their future emergence. With such labels. The absence of uniform criteria will harmonisation economic operators will thus increase costs and create a significant find it easier to raise funding for their disincentive for economic operators, green activities across borders, as their amounting to an impediment to access economic activities can be compared cross-border capital markets for sustainable against uniform criteria in order to be investments. The barriers to access to selected as underlying assets for cross-border capital markets for the environmentally sustainable investments. It PE632.153v01-00 16/162 AM\1172566EN.docx EN purposes of raising funds for sustainable will therefore facilitate attracting projects are expected to grow further. The investment across borders within the criteria for determining whether an Union. economic activity is environmentally sustainable should therefore be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.

Or. en

Amendment 145 Elena Gentile

Proposal for a regulation Recital 9

Text proposed by the Commission Amendment

(9) Offering financial products which (9) Offering financial products and pursue environmentally sustainable services which pursue environmentally objectives is an effective way of sustainable objectives is an effective way channelling private investments into of channelling and gradually shifting sustainable activities. National private investments into sustainable requirements for marketing as sustainable activities. National requirements for investments financial products and marketing as sustainable investments corporate bonds, in particular requirements financial products and corporate bonds, in set out to allow the relevant market actors particular requirements set out to allow the to use a national label, aim to enhance relevant market actors to use a national investor confidence, to create visibility and label, aim to enhance investor confidence, to address concerns about “greenwashing”. to create visibility and to address concerns Greenwashing refers to the practice of about “greenwashing”. Greenwashing gaining an unfair competitive advantage by refers to the practice of gaining an unfair marketing a financial product as competitive advantage by marketing a environment-friendly, when in fact it does financial product as environment-friendly, not meet basic environmental standards. when in fact it does not meet basic Currently a few Member States have in environmental standards. Currently a few place labelling schemes. They build on Member States have in place labelling different taxonomies classifying schemes. They build on different AM\1172566EN.docx 17/162 PE632.153v01-00 EN environmentally sustainable economic taxonomies classifying environmentally activities. Given the political commitments sustainable economic activities. Given the under the Paris Agreement and at Union political commitments under the Paris level, it is likely that more and more Agreement and at Union level, it is likely Member States will set up labelling that more and more Member States will set schemes or other requirements on market up labelling schemes or other requirements actors in respect of financial products or on market actors in respect of financial corporate bonds marketed as products or corporate bonds marketed as environmentally sustainable. In doing so, environmentally sustainable. In doing so, Member States would be using their own Member States would be using their own national taxonomies for the purposes of national taxonomies for the purposes of determining which investments qualify as determining which investments qualify as sustainable. If such national requirements sustainable. If such national requirements are based on different criteria as to which are based on different criteria as to which economic activities qualify as economic activities qualify as environmentally sustainable, investors will environmentally sustainable, investors will be discouraged from investing across be discouraged from investing across borders, due to difficulties in comparing borders, due to difficulties in comparing the different investment opportunities. In the different investment opportunities. In addition, economic operators wishing to addition, economic operators wishing to attract investment from across the Union attract investment from across the Union would have to meet different criteria in the would have to meet different criteria in the various Member States in order for their various Member States in order for their activities to qualify as environmentally activities to qualify as environmentally sustainable for the purposes of the different sustainable for the purposes of the different labels. The absence of uniform criteria will labels. The absence of uniform criteria will thus increase costs and create a significant thus increase costs and create a significant disincentive for economic operators, disincentive for economic operators, amounting to an impediment to access amounting to an impediment to access cross-border capital markets for sustainable cross-border capital markets for sustainable investments. The barriers to access to investments. The barriers to access to cross-border capital markets for the cross-border capital markets for the purposes of raising funds for sustainable purposes of raising funds for sustainable projects are expected to grow further. The projects are expected to grow further. The criteria for determining whether an criteria for determining whether an economic activity is environmentally economic activity is environmentally sustainable should therefore be harmonised sustainable should therefore be harmonised at Union level, in order to remove at Union level, in order to remove obstacles to the functioning of the internal obstacles to the functioning of the internal market and prevent their future emergence. market and prevent their future emergence. With such harmonisation economic With such harmonisation economic operators will find it easier to raise funding operators will find it easier to raise funding for their green activities across borders, as for their green activities across borders, as their economic activities can be compared their economic activities can be compared against uniform criteria in order to be against uniform criteria in order to be selected as underlying assets for selected as underlying assets for environmentally sustainable investments. It environmentally sustainable investments. It will therefore facilitate attracting will therefore facilitate attracting investment across borders within the investment across borders within the Union. Union.

PE632.153v01-00 18/162 AM\1172566EN.docx EN Or. en

Amendment 146 Mireille D'Ornano

Proposal for a regulation Recital 9

Text proposed by the Commission Amendment

(9) Offering financial products which (9) Offering financial products which pursue environmentally sustainable pursue environmentally sustainable objectives is an effective way of objectives is an effective way of channelling private investments into channelling private investments into sustainable activities. National sustainable activities. National requirements for marketing as sustainable requirements for marketing as sustainable investments financial products and investments financial products and corporate bonds, in particular requirements corporate bonds, in particular requirements set out to allow the relevant market actors set out to allow the relevant market actors to use a national label, aim to enhance to use a national label, aim to enhance investor confidence, to create visibility and investor confidence, to create visibility and to address concerns about “greenwashing”. to address concerns about “greenwashing”. Greenwashing refers to the practice of Greenwashing refers to the practice of gaining an unfair competitive advantage by gaining an unfair competitive advantage by marketing a financial product as marketing a financial product as environment-friendly, when in fact it does environment-friendly, when in fact it does not meet basic environmental standards. not meet basic environmental standards. Currently a few Member States have in Currently a few Member States have in place labelling schemes. They build on place labelling schemes. They build on different taxonomies classifying different taxonomies classifying environmentally sustainable economic environmentally sustainable economic activities. Given the political commitments activities. Given the political commitments under the Paris Agreement and at Union under the Paris Agreement and at Union level, it is likely that more and more level, it is possible that more and more Member States will set up labelling Member States will set up labelling schemes or other requirements on market schemes or other requirements on market actors in respect of financial products or actors in respect of financial products or corporate bonds marketed as corporate bonds marketed as environmentally sustainable. In doing so, environmentally sustainable. In doing so, Member States would be using their own Member States would be using their own national taxonomies for the purposes of national taxonomies for the purposes of determining which investments qualify as determining which investments qualify as sustainable. If such national requirements sustainable. If such national requirements are based on different criteria as to which are based on different criteria as to which economic activities qualify as economic activities qualify as environmentally sustainable, investors will environmentally sustainable, investors will be discouraged from investing across be discouraged from investing across borders, due to difficulties in comparing borders, due to difficulties in comparing the different investment opportunities. In the different investment opportunities. In AM\1172566EN.docx 19/162 PE632.153v01-00 EN addition, economic operators wishing to addition, economic operators wishing to attract investment from across the Union attract investment from across the Union would have to meet different criteria in the would have to meet different criteria in the various Member States in order for their various Member States in order for their activities to qualify as environmentally activities to qualify as environmentally sustainable for the purposes of the different sustainable for the purposes of the different labels. The absence of uniform criteria will labels. The absence of uniform criteria will thus increase costs and create a significant thus increase costs and create a significant disincentive for economic operators, disincentive for economic operators, amounting to an impediment to access amounting to an impediment to access cross-border capital markets for sustainable cross-border capital markets for sustainable investments. The barriers to access to investments. The barriers to access to cross-border capital markets for the cross-border capital markets for the purposes of raising funds for sustainable purposes of raising funds for sustainable projects are expected to grow further. The projects are expected to grow further. In criteria for determining whether an order to remove obstacles to the economic activity is environmentally functioning of the internal market and sustainable should therefore be prevent their future emergence, one harmonised at Union level, in order to possible solution for consideration would remove obstacles to the functioning of the be to harmonise the criteria for internal market and prevent their future determining whether an economic activity emergence. With such harmonisation is environmentally sustainable. With such economic operators will find it easier to harmonisation economic operators will raise funding for their green activities find it easier to raise funding for their across borders, as their economic activities green activities across borders, as their can be compared against uniform criteria in economic activities can be compared order to be selected as underlying assets for against uniform criteria in order to be environmentally sustainable investments. It selected as underlying assets for will therefore facilitate attracting environmentally sustainable investments. It investment across borders within the will therefore facilitate attracting Union. investment across borders within the Union.

Or. fr

Amendment 147 Anne Sander, Alain Lamassoure

Proposal for a regulation Recital 9

Text proposed by the Commission Amendment

(9) Offering financial products which (9) Offering financial products which pursue environmentally sustainable are marketed as and pursue objectives is an effective way of environmentally sustainable objectives is channelling private investments into an effective way of channelling private sustainable activities. National investments into sustainable activities. requirements for marketing as sustainable National requirements for marketing as PE632.153v01-00 20/162 AM\1172566EN.docx EN investments financial products and sustainable investments financial products corporate bonds, in particular requirements and corporate bonds, in particular set out to allow the relevant market actors requirements set out to allow the relevant to use a national label, aim to enhance market actors to use a national label, aim to investor confidence, to create visibility and enhance investor confidence, to create to address concerns about “greenwashing”. visibility and to address concerns about Greenwashing refers to the practice of “greenwashing”. Greenwashing refers to gaining an unfair competitive advantage by the practice of gaining an unfair marketing a financial product as competitive advantage by marketing a environment-friendly, when in fact it does financial product as environment-friendly, not meet basic environmental standards. when in fact it does not meet basic Currently a few Member States have in environmental standards. Currently a few place labelling schemes. They build on Member States have in place labelling different taxonomies classifying schemes. They build on different environmentally sustainable economic taxonomies classifying environmentally activities. Given the political commitments sustainable economic activities. Given the under the Paris Agreement and at Union political commitments under the Paris level, it is likely that more and more Agreement and at Union level, it is likely Member States will set up labelling that more and more Member States will set schemes or other requirements on market up labelling schemes or other requirements actors in respect of financial products or on market actors in respect of financial corporate bonds marketed as products or corporate bonds marketed as environmentally sustainable. In doing so, environmentally sustainable. In doing so, Member States would be using their own Member States would be using their own national taxonomies for the purposes of national taxonomies for the purposes of determining which investments qualify as determining which investments qualify as sustainable. If such national requirements sustainable. If such national requirements are based on different criteria as to which are based on different criteria as to which economic activities qualify as economic activities qualify as environmentally sustainable, investors will environmentally sustainable, investors will be discouraged from investing across be discouraged from investing across borders, due to difficulties in comparing borders, due to difficulties in comparing the different investment opportunities. In the different investment opportunities. In addition, economic operators wishing to addition, economic operators wishing to attract investment from across the Union attract investment from across the Union would have to meet different criteria in the would have to meet different criteria in the various Member States in order for their various Member States in order for their activities to qualify as environmentally activities to qualify as environmentally sustainable for the purposes of the different sustainable for the purposes of the different labels. The absence of uniform criteria will labels. The absence of uniform criteria will thus increase costs and create a significant thus increase costs and create a significant disincentive for economic operators, disincentive for economic operators, amounting to an impediment to access amounting to an impediment to access cross-border capital markets for sustainable cross-border capital markets for sustainable investments. The barriers to access to investments. The barriers to access to cross-border capital markets for the cross-border capital markets for the purposes of raising funds for sustainable purposes of raising funds for sustainable projects are expected to grow further. The projects are expected to grow further. The criteria for determining whether an criteria for determining whether an economic activity is environmentally economic activity is environmentally sustainable should therefore be harmonised sustainable should therefore be harmonised AM\1172566EN.docx 21/162 PE632.153v01-00 EN at Union level, in order to remove at Union level, in order to remove obstacles to the functioning of the internal obstacles to the functioning of the internal market and prevent their future emergence. market and prevent their future emergence. With such harmonisation economic With such harmonisation economic operators will find it easier to raise funding operators will find it easier to raise funding for their green activities across borders, as for their green activities across borders, as their economic activities can be compared their economic activities can be compared against uniform criteria in order to be against uniform criteria in order to be selected as underlying assets for selected as underlying assets for environmentally sustainable investments. It environmentally sustainable investments. It will therefore facilitate attracting will therefore facilitate attracting investment across borders within the investment across borders within the Union. Union.

Or. en

Amendment 148 Pavel Poc

Proposal for a regulation Recital 9 a (new)

Text proposed by the Commission Amendment

(9 a) The taxonomy framework for investing in sustainable investments should primarily serve to facilitate investment of this type and should not be a tool for forced reallocation of investment from other projects. The taxonomy framework for investing in sustainable investments should not fundamentally affect the availability/costs of other forms of financing. It is necessary to consider what impacts the “sustainable” instruments can have on the “non-sustainable” ones that have been realised earlier. Also it is important to stipulate that this Regulation should only be applicable to new investments to avoid retroactivity effect.

Or. en

Justification

Too strict sustainability framework could pose a large threat for conventional energy generation assets, which are still in many countries the backbone of energy system and are granting the security of energy supply to customers. If any investment labelled as non- PE632.153v01-00 22/162 AM\1172566EN.docx EN sustainable would be fundamentally disadvantaged, that could lead to significant risk of security of supply failure and higher energy prices for customers. Also reduced cost of capital to hold sustainable investments by banks may result in providing funding for risky projects only because they display sustainable features.

Amendment 149 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Recital 9 a (new)

Text proposed by the Commission Amendment

(9 a) In addition, where appropriate, labelling financial products or corporate bonds as environmentally harmful with uniform criteria would provide additional market information with regard to economic activities that significantly harm environmental objectives and would enable the financial market to gradually channel private investments towards environmentally neutral economic activities, which have no specific label, or environmentally sustainable economic activities. It will also enable the Union and Member States to end public financial support for investments that significantly harm environmental objectives.

Or. en

Amendment 150 Nils Torvalds, Fredrick Federley, Anneli Jäätteenmäki, Jytte Guteland, Ulrike Müller, Elsi Katainen, Petri Sarvamaa

Proposal for a regulation Recital 9 a (new)

Text proposed by the Commission Amendment

(9 a) In order for the Union to reach its environmental and climate commitments, private investments need to be mobilized. Achieving this requires long-term planning as well as regulatory stability

AM\1172566EN.docx 23/162 PE632.153v01-00 EN and predictability for investors. In order to guarantee a coherent policy framework for sustainable investments, it is therefore important that the provisions of this Regulation build upon existing Union legislation.

Or. en

Amendment 151 Christofer Fjellner, Gunnar Hökmark

Proposal for a regulation Recital 9 a (new)

Text proposed by the Commission Amendment

(9 a) Achieving the Union’s environmental and climate commitments requires private investments. To mobilise private investments it is necessary to guarantee a coherent policy framework for sustainable investments. This requires regulatory stability and predictability for investors in the long-term. Therefore, it is important that the provisions of this Regulation build upon existing Union legislation.

Or. en

Amendment 152 Fulvio Martusciello

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

(10) Moreover if market participants do (10) Moreover if market participants do not provide any explanation to investors not disclose how the activities they invest of how the activities they invest in in contribute to environmental objectives, contribute to environmental objectives, or or if they use different metrics and criteria if they use different concepts in their for determining what is a ‘sustainable’ explanation of what is a ‘sustainable’ economic activity, investors will find it economic activity, investors will find it disproportionately burdensome to check disproportionately burdensome to check and compare these different financial PE632.153v01-00 24/162 AM\1172566EN.docx EN and compare these different financial products. It has been found that this products. It has been found that this discourages investors from investing discourages investors from investing into into sustainable financial products. green financial products. Furthermore, the Furthermore, the lack of investor lack of investor confidence has major confidence has major detrimental effects detrimental effects on the market for on the market for sustainable investment. It sustainable investment. It has further been has further been shown that national rules shown that national rules or market-based or market-based initiatives taken to tackle initiatives taken to tackle this issue within this issue within national borders will lead national borders will lead to fragmenting to fragmenting the internal market. If the internal market. If financial market financial market participants disclose how participants disclose how the financial the financial products they claim are products they claim are environment- environment-friendly meet environmental friendly meet environmental objectives, objectives, and they use for such and they use for such disclosures common disclosures common criteria across the criteria across the Union of what is an Union of what is an environmentally environmentally sustainable economic sustainable economic activity, this will activity, this will help investors compare help investors compare the environmental environment-friendly investment impact of investment opportunities across opportunities across borders. Investors will borders. Investors will invest in green invest in green financial products with financial products with higher confidence higher confidence across the Union, across the Union, improving the improving the functioning of the internal functioning of the internal market. market.

Or. en

Amendment 153 Elena Gentile

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

(10) Moreover if market participants do (10) Moreover if market participants do not provide any explanation to investors not disclose how the activities they invest of how the activities they invest in in contribute to environmental objectives, contribute to environmental objectives, or or if they use different metrics and criteria if they use different concepts in their for determining what is a ‘sustainable’ explanation of what is a ‘sustainable’ economic activity, investors will find it economic activity, investors will find it disproportionately burdensome to check disproportionately burdensome to check and compare these different financial and compare these different financial products. It has been found that this products. It has been found that this discourages investors from investing discourages investors from investing into into sustainable financial products. green financial products. Furthermore, the Furthermore, the lack of investor lack of investor confidence has major confidence has major detrimental effects detrimental effects on the market for on the market for sustainable investment. It AM\1172566EN.docx 25/162 PE632.153v01-00 EN sustainable investment. It has further been has further been shown that national rules shown that national rules or market-based or market-based initiatives taken to tackle initiatives taken to tackle this issue within this issue within national borders will lead national borders will lead to fragmenting to fragmenting the internal market. If the internal market. If financial market financial market participants disclose how participants disclose how the financial the financial products they claim are products they claim are environment- environment-friendly meet environmental friendly meet environmental objectives, objectives, and they use for such and they use for such disclosures common disclosures common criteria across the criteria across the Union of what is an Union of what is an environmentally environmentally sustainable economic sustainable economic activity, this will activity, this will help investors compare help investors compare environment- environment-friendly investment friendly investment opportunities across opportunities across borders. Investors will borders. Investors will invest in green invest in green financial products with financial products with higher confidence higher confidence across the Union, across the Union, improving the improving the functioning of the internal functioning of the internal market. market.

Or. en

Amendment 154 Paul Tang, Simona Bonafè, Pervenche Berès

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

(10) Moreover if market participants do (10) Moreover if market participants do not provide any explanation to investors of not provide any explanation to investors of how the activities they invest in contribute how the activities they invest in contribute to environmental objectives, or if they use to environmental objectives, or if they use different concepts in their explanation of different concepts in their explanation of what is a ‘sustainable’ economic activity, what is a ‘sustainable’ economic activity, investors will find it disproportionately investors will find it disproportionately burdensome to check and compare these burdensome to check and compare these different financial products. It has been different financial products. It has been found that this discourages investors from found that this discourages investors from investing into green financial products. investing into green financial products. Furthermore, the lack of investor Furthermore, the lack of investor confidence has major detrimental effects confidence has major detrimental effects on the market for sustainable investment. It on the market for sustainable investment. It has further been shown that national rules has further been shown that national rules or market-based initiatives taken to tackle or market-based initiatives taken to tackle this issue within national borders will lead this issue within national borders will lead to fragmenting the internal market. If to fragmenting the internal market. If financial market participants disclose how financial market participants disclose how the financial products they claim are the financial products they claim are PE632.153v01-00 26/162 AM\1172566EN.docx EN environment-friendly meet environmental environment-friendly meet environmental objectives, and they use for such objectives, and they use for such disclosures common criteria across the disclosures common criteria across the Union of what is an environmentally Union of what is an environmentally sustainable economic activity, this will sustainable economic activity, this will help investors compare environment- help investors compare environment- friendly investment opportunities across friendly investment opportunities across borders. Investors will invest in green borders and will incentivise investee financial products with higher confidence companies to make their business models across the Union, improving the more sustainable. Investors will invest in functioning of the internal market. green financial products with higher confidence across the Union, improving the functioning of the internal market.

Or. en

Amendment 155 Dariusz Rosati, Andrzej Grzyb

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

(10) Moreover if market participants do (10) Moreover if market participants do not provide any explanation to investors of not provide any explanation to investors of how the activities they invest in contribute how the activities they invest in contribute to environmental objectives, or if they use to environmental objectives, or if they use different concepts in their explanation of different concepts in their explanation of what is a ‘sustainable’ economic activity, what is a ‘sustainable’ economic activity, investors will find it disproportionately investors will find it disproportionately burdensome to check and compare these burdensome to check and compare these different financial products. It has been different financial products. It has been found that this discourages investors from found that this discourages investors from investing into green financial products. investing into sustainable financial Furthermore, the lack of investor products. Furthermore, the lack of investor confidence has major detrimental effects confidence has major detrimental effects on the market for sustainable investment. It on the market for sustainable investment. It has further been shown that national rules has further been shown that national rules or market-based initiatives taken to tackle or market-based initiatives taken to tackle this issue within national borders will lead this issue within national borders will lead to fragmenting the internal market. If to fragmenting the internal market. If financial market participants disclose how financial market participants disclose how the financial products they claim are the financial products they claim are environment-friendly meet environmental environment-friendly meet environmental objectives, and they use for such objectives, and they use for such disclosures common criteria across the disclosures common criteria across the Union of what is an environmentally Union of what is an environmentally sustainable economic activity, this will sustainable economic activity, this will AM\1172566EN.docx 27/162 PE632.153v01-00 EN help investors compare environment- help investors compare environment- friendly investment opportunities across friendly investment opportunities across borders. Investors will invest in green borders. Investors will invest in financial products with higher confidence sustainable financial products with higher across the Union, improving the confidence across the Union, improving functioning of the internal market. the functioning of the internal market.

Or. en

Amendment 156 Mireille D'Ornano

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

(10) Moreover if market participants do (Does not affect the English version.) not provide any explanation to investors of how the activities they invest in contribute to environmental objectives, or if they use different concepts in their explanation of what is a ‘sustainable’ economic activity, investors will find it disproportionately burdensome to check and compare these different financial products. It has been found that this discourages investors from investing into green financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment-friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare environment- friendly investment opportunities across borders. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.

PE632.153v01-00 28/162 AM\1172566EN.docx EN Or. fr

Amendment 157 Fulvio Martusciello

Proposal for a regulation Recital 10 a (new)

Text proposed by the Commission Amendment

(10 a) The indicators should be harmonised based on existing undertakings, such as the work of the Commission, the European Environmental Agency, and the OECD, among others, and should capture environmental impact on CO2 and other emissions, biodiversity, production of waste, the use of energy and renewable energy, raw materials, water, and direct and indirect land use, as laid out in the Commission monitoring framework on the circular economy (COM/2018/29 final), the EU action plan for the Circular Economy (COM/2015/0614 final) and in the European Parliament's resolution of 9 July 2015 on resource efficiency: moving towards a circular economy (2014/2208(INI)). Furthermore the indicators should be designed also taking into account the recommendations of the Support to Circular Economy Financing Expert Group of the European Commission. The Commission should evaluate how to integrate the work of this expert group with the TEG. Indicators should take into account internationally recognized sustainable standards.

Or. en

Amendment 158 Elena Gentile

Proposal for a regulation Recital 10 a (new)

AM\1172566EN.docx 29/162 PE632.153v01-00 EN Text proposed by the Commission Amendment

(10 a) The indicators should be harmonised based on existing undertakings such as developed by the Commission, the European Environmental Agency, and the OECD among others, and should capture environmental impact on CO2 and other emissions, biodiversity, production of waste, the use of energy, raw materials, water, and direct and indirect land use, as laid out in the Commission monitoring framework on the circular economy (COM/2018/29 final), the EU Action plan for the Circular Economy (COM/2015/0614 final) and the European Parliament's resolution on resource efficiency: moving towards a circular economy (2014/2208(INI)). Furthermore, the indicators should be designed also taking into account the recommendations of the support to Circular Economy Financing Expert Group of the European Commission. The Commission should evaluate how to integrate the work of this expert group with the TEG. Indicators should take into account internationally recognized sustainable standards.

Or. en

Amendment 159 Othmar Karas, Lukas Mandl

Proposal for a regulation Recital 10 a (new)

Text proposed by the Commission Amendment

(10 a) In order to deliver an effective environmental and sustainability impact, to decrease unnecessary administrative burden on financial market participants and to facilitate the growth of European financial markets funding sustainable economic activities, the taxonomy should be based on harmonised, comparable and uniform criteria. Any overlap in PE632.153v01-00 30/162 AM\1172566EN.docx EN regulation or pre-emptive legislative action must be avoided which would not be in line with the principles of better regulation and proportionality, the aim to create a consistent terminology and a clear regulatory framework or would lead to an unnecessary burdening of both, authorities and financial institutions.

Or. en

Amendment 160 Mireille D'Ornano

Proposal for a regulation Recital 11

Text proposed by the Commission Amendment

(11) To address existing obstacles to the (11) To address existing obstacles to the functioning of the internal market and to functioning of the internal market and to prevent the emergence of such obstacles in prevent the emergence of such obstacles in the future, Member States should be the future, Member States could be invited required to use a common concept of to use a common concept of environmentally sustainable investment environmentally sustainable investment when setting up requirements for market when setting up requirements for market actors for the purpose of labelling financial actors for the purpose of labelling financial products or corporate bonds marketed as products or corporate bonds marketed as environmentally sustainable at national environmentally sustainable at national level. For the same reasons, fund managers level. For the same reasons, fund managers and institutional investors that hold and institutional investors that hold themselves out as pursuing environmental themselves out as pursuing environmental objectives should use the same concept of objectives should use the same concept of environmentally sustainable investment environmentally sustainable investment when disclosing how they pursue those when disclosing how they pursue those objectives. objectives.

Or. fr

Amendment 161 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 12

Text proposed by the Commission Amendment

AM\1172566EN.docx 31/162 PE632.153v01-00 EN (12) Establishing criteria for (12) The information on the environmentally sustainable economic environmental and social impact of activities may encourage firms to disclose activities will help relevant actors in the on their websites, on a voluntary basis, financial markets to easily determine the information on the environmentally degree of sustainability of the economic sustainable economic activities they carry activities carried out by firms, also out. This information will not only help facilitating firms to raise funding for their relevant actors in the financial markets to sustainable activities. easily identify which firms carry out environmentally sustainable economic activities, but it will also facilitate for these firms to raise funding for their green activities.

Or. en

Amendment 162 Dariusz Rosati, Andrzej Grzyb

Proposal for a regulation Recital 12

Text proposed by the Commission Amendment

(12) Establishing criteria for (12) Establishing criteria for environmentally sustainable economic environmentally sustainable economic activities may encourage firms to disclose activities may encourage firms to disclose on their websites, on a voluntary basis, on their websites, on a voluntary basis, information on the environmentally information on the environmentally sustainable economic activities they carry sustainable economic activities they carry out. This information will not only help out. This information will not only help relevant actors in the financial markets to relevant actors in the financial markets to easily identify which firms carry out easily identify which firms carry out environmentally sustainable economic environmentally sustainable economic activities, but it will also facilitate for these activities, but it will also facilitate for these firms to raise funding for their green firms to raise funding for their sustainable activities. activities.

Or. en

Amendment 163 Elena Gentile

Proposal for a regulation Recital 12

PE632.153v01-00 32/162 AM\1172566EN.docx EN Text proposed by the Commission Amendment

(12) Establishing criteria for (12) Establishing criteria for environmentally sustainable economic environmentally sustainable economic activities may encourage firms to disclose activities may encourage firms to disclose on their websites, on a voluntary basis, on their websites, on a voluntary basis, information on the environmentally information on the environmentally sustainable economic activities they carry sustainable economic activities they carry out. This information will not only help out. This information will not only help relevant actors in the financial markets to relevant actors in the financial markets to easily identify which firms carry out easily identify which firms carry out environmentally sustainable economic environmentally sustainable economic activities, but it will also facilitate for these activities, but it will also facilitate for these firms to raise funding for their green firms to raise funding for their sustainable activities. activities.

Or. en

Amendment 164 Fulvio Martusciello

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) A Union classification of (13) Union-wide indicators determining environmentally sustainable economic the environmental impact of economic activities should enable the development of activities should enable the development of future Union policies, including Union- future Union policies, including Union- wide standards for environmentally wide standards for environmentally sustainable financial products and sustainable financial products and eventually the establishment of labels that eventually the establishment of labels that formally recognise compliance with those formally recognise compliance with those standards across the Union. Uniform legal standards across the Union. Uniform legal requirements for considering investments requirements for assessing the as environmentally sustainable environmental sustainability of investments, based on uniform criteria for investments, based on uniform criteria for environmentally sustainable economic determining the environmental activities, are necessary as a reference for sustainability of economic activities and future Union legislation aiming at enabling common indicators for assessing the those investments. environmental impact of investments, are necessary as a reference for future Union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact.

Or. en AM\1172566EN.docx 33/162 PE632.153v01-00 EN

Amendment 165 Markus Ferber

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) A Union classification of (13) A Union classification of environmentally sustainable economic environmentally sustainable economic activities should enable the development of activities should enable the development of future Union policies, including Union- Union-wide standards for environmentally wide standards for environmentally sustainable financial products and sustainable financial products and eventually the establishment of labels that eventually the establishment of labels that formally recognise compliance with those formally recognise compliance with those standards across the Union. However, standards across the Union. Uniform legal those standards for environmentally requirements for considering investments sustainable economic activities should not as environmentally sustainable be the basis for prudential requirements investments, based on uniform criteria for such as own funds or capital environmentally sustainable economic requirements. activities, are necessary as a reference for future Union legislation aiming at enabling those investments.

Or. en

Justification

It should be clarified that sustainability considerations must not play any role in setting prudential requirements such as own funds or capital requirements. Prudential requirements should be solely risk-based.

Amendment 166 Jakob von Weizsäcker

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) A Union classification of (13) The Platform on Sustainable environmentally sustainable economic Finance and the recurring reviews of this activities should enable the development of Regulation by the Commission should future Union policies, including Union- cover whether it is necessary to move from wide standards for environmentally common criteria for classifying economic sustainable financial products and activities as environmentally sustainable

PE632.153v01-00 34/162 AM\1172566EN.docx EN eventually the establishment of labels that to a Union classification of formally recognise compliance with those environmentally sustainable activities and standards across the Union. Uniform legal investments, especially in view of requirements for considering investments incentives for national governments to as environmentally sustainable more generously classify economic investments, based on uniform criteria for activities as environmentally sustainable environmentally sustainable economic in order to attract more investment. A activities, are necessary as a reference for Union classification of environmentally future Union legislation aiming at enabling sustainable economic activities should those investments. furthermore enable the development of future Union policies, including Union- wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for considering investments as environmentally sustainable investments, based on uniform criteria for environmentally sustainable economic activities, are necessary as a reference for future Union legislation aiming at enabling those investments, including the introduction of a brown-penalising factor into the prudential framework for financial institutions in order to adequately account for climate change risks associated with carbon-intensive assets.

Or. en

Amendment 167 Elisabetta Gardini, Fulvio Martusciello, Alberto Cirio, Aldo Patriciello

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) A Union classification of (13) A Union classification of environmentally sustainable economic environmentally and economically activities should enable the development of sustainable activities should gradually future Union policies, including Union- enable the development of future Union wide standards for environmentally policies, including Union-wide standards sustainable financial products and for sustainable financial products and eventually the establishment of labels that eventually the establishment of labels that formally recognise compliance with those formally recognise compliance with those standards across the Union. Uniform legal standards across the Union. Uniform legal AM\1172566EN.docx 35/162 PE632.153v01-00 EN requirements for considering investments requirements for considering sustainable as environmentally sustainable investments as such, based on uniform investments, based on uniform criteria for criteria for a certain number of sustainable environmentally sustainable economic activities, are necessary as a reference for activities, are necessary as a reference for future Union legislation aiming at enabling future Union legislation aiming at enabling those investments. those investments.

Or. en

Amendment 168 Lieve Wierinck, Thierry Cornillet, Fredrick Federley, Ramon Tremosa i Balcells, Caroline Nagtegaal

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) A Union classification of (13) A Union classification of environmentally sustainable economic environmentally sustainable economic activities should enable the development of activities should enable the development of future Union policies, including Union- future Union policies and strategies, wide standards for environmentally including Union-wide standards for sustainable financial products and environmentally sustainable financial eventually the establishment of labels that products and eventually the establishment formally recognise compliance with those of labels that formally recognise standards across the Union. Uniform legal compliance with those standards across the requirements for considering investments Union. Uniform legal requirements for as environmentally sustainable considering investments as investments, based on uniform criteria for environmentally sustainable investments, environmentally sustainable economic based on uniform criteria for activities, are necessary as a reference for environmentally sustainable economic future Union legislation aiming at enabling activities, are necessary as a reference for those investments. future Union legislation aiming at enabling those investments.

Or. en

Amendment 169 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

PE632.153v01-00 36/162 AM\1172566EN.docx EN (13) A Union classification of (13) A Union classification of environmentally sustainable economic environmentally sustainable economic activities should enable the development of activities should enable the development of future Union policies, including Union- future Union policies and strategies, wide standards for environmentally including Union-wide standards for sustainable financial products and environmentally sustainable financial eventually the establishment of labels that products and eventually the establishment formally recognise compliance with those of labels that formally recognise standards across the Union. Uniform legal compliance with those standards across the requirements for considering investments Union. Uniform legal requirements for as environmentally sustainable considering investments as investments, based on uniform criteria for environmentally sustainable investments, environmentally sustainable economic based on uniform criteria for activities, are necessary as a reference for environmentally sustainable economic future Union legislation aiming at enabling activities, are necessary as a reference for those investments. future Union legislation aiming at enabling those investments.

Or. en

Amendment 170 Othmar Karas, Lukas Mandl

Proposal for a regulation Recital 13 a (new)

Text proposed by the Commission Amendment

(13 a) To ensure effective and efficient legislative action without creating potential overlaps, bureaucratic burden or additional costs for the real economy, the scope and use of the technical screening criteria as well as the link to other initiatives should be clearly defined before the taxonomy and pertaining criteria enter into force.

Or. en

Amendment 171 Nils Torvalds, Fredrick Federley, Anneli Jäätteenmäki, Jytte Guteland, Ulrike Müller, Elsi Katainen, Petri Sarvamaa

Proposal for a regulation Recital 13 a (new)

AM\1172566EN.docx 37/162 PE632.153v01-00 EN Text proposed by the Commission Amendment

(13 a) Setting harmonised criteria for environmentally sustainable economic activities should not undermine the division of competences between Member States and the Union in different policy areas.

Or. en

Amendment 172 Christofer Fjellner, Gunnar Hökmark

Proposal for a regulation Recital 13 a (new)

Text proposed by the Commission Amendment

(13 a) Setting harmonised criteria for environmentally sustainable economic activities should not undermine the division of competences between Member States and the Union.

Or. en

Amendment 173 Stefan Gehrold

Proposal for a regulation Recital 14

Text proposed by the Commission Amendment

(14) In the context of achieving SDGs in (14) In the context of achieving SDGs in the Union, policy choices such as the the Union, policy choices such as the creation of a European Fund for Strategic creation of a European Fund for Strategic Investment, have proven to be effective in Investment, have proven to be effective in contributing to channel private investment contributing to channel private investment alongside public spending towards alongside public spending towards sustainable investments. Regulation (EU) sustainable investments. Regulation (EU) 2015/1017 of the European Parliament and 2015/1017 of the European Parliament and of the Council27specifies a 40% climate of the Council27 specifies a 40% climate investment target for infrastructure and investment target for infrastructure and innovation projects under the European innovation projects designed to lessen the Fund for Strategic Investment. Common human influence on climate change under PE632.153v01-00 38/162 AM\1172566EN.docx EN criteria for the sustainability of economic the European Fund for Strategic activities could underpin future similar Investment. Common criteria for the initiatives of the Union supporting sustainability of economic activities could investment pursuing climate-related or underpin future similar initiatives of the other environmental objectives. Union supporting investment pursuing climate-related or other environmental objectives. ______27 Regulation (EU) 2017/2396 of the 27 Regulation (EU) 2017/2396 of the European Parliament and of the Council of European Parliament and of the Council of 13 December 2017 amending Regulations 13 December 2017 amending Regulations (EU) No 1316/2013 and (EU) 2015/1017 (EU) No 1316/2013 and (EU) 2015/1017 as regards the extension of the duration of as regards the extension of the duration of the European Fund for Strategic the European Fund for Strategic Investments as well as the introduction of Investments as well as the introduction of technical enhancements for that Fund and technical enhancements for that Fund and the European Investment Advisory Hub the European Investment Advisory Hub (OJ L 345, 27.12.2017, p. 34). (OJ L 345, 27.12.2017, p. 34).

Or. de

Amendment 174 Othmar Karas

Proposal for a regulation Recital 14

Text proposed by the Commission Amendment

(14) In the context of achieving SDGs in (14) In the context of achieving SDGs in the Union, policy choices such as the the Union, policy choices such as the creation of a European Fund for Strategic creation of a European Fund for Strategic Investment, have proven to be effective in Investment, have proven to be effective in contributing to channel private investment contributing to mobilise private investment alongside public spending towards alongside public spending in sustainable sustainable investments. Regulation (EU) investments. Regulation (EU) 2015/1017 2015/1017 of the European Parliament and of the European Parliament and of the of the Council27 specifies a 40% climate Council27 specifies a 40% horizontal investment target for infrastructure and climate investment target for infrastructure innovation projects under the European and innovation projects under the European Fund for Strategic Investment. Common Fund for Strategic Investment. Common criteria for the sustainability of economic criteria for the sustainability of economic activities could underpin future similar activities may underpin future similar initiatives of the Union supporting initiatives of the Union mobilising investment pursuing climate-related or investment pursuing climate-related or other environmental objectives. other environmental objectives. ______

AM\1172566EN.docx 39/162 PE632.153v01-00 EN 27 Regulation (EU) 2017/2396 of the 27 Regulation (EU) 2017/2396 of the European Parliament and of the Council of European Parliament and of the Council of 13 December 2017 amending Regulations 13 December 2017 amending Regulations (EU) No 1316/2013 and (EU) 2015/1017 (EU) No 1316/2013 and (EU) 2015/1017 as regards the extension of the duration of as regards the extension of the duration of the European Fund for Strategic the European Fund for Strategic Investments as well as the introduction of Investments as well as the introduction of technical enhancements for that Fund and technical enhancements for that Fund and the European Investment Advisory Hub the European Investment Advisory Hub (OJ L 345, 27.12.2017, p. 34). (OJ L 345, 27.12.2017, p. 34).

Or. en

Amendment 175 Elena Gentile

Proposal for a regulation Recital 15

Text proposed by the Commission Amendment

(15) To avoid market fragmentation as (15) To avoid market fragmentation as well as harm to consumer interests due to well as harm to consumer interests due to divergent notions of environmentally divergent notions of the environmentally sustainable economic activities, national sustainable of economic activities, national requirements that market actors should requirements that market actors should comply with when they wish to market comply with when they wish to market financial products or corporate bonds as financial products or corporate bonds as being environmentally sustainable, should defined in this Regulation being build on the uniform criteria for environmentally sustainable, should build environmentally sustainable economic on the uniform criteria for environmentally activities. Those market actors include sustainable economic activities. Those financial market participants offering market actors include financial market “green” financial products and non- participants offering sustainable financial financial companies issuing “green” products or services and non-financial corporate bonds. companies issuing sustainable corporate bonds.

Or. en

Amendment 176 Dariusz Rosati, Andrzej Grzyb

Proposal for a regulation Recital 15

PE632.153v01-00 40/162 AM\1172566EN.docx EN Text proposed by the Commission Amendment

(15) To avoid market fragmentation as (15) To avoid market fragmentation as well as harm to consumer interests due to well as harm to consumer interests due to divergent notions of environmentally divergent notions of environmentally sustainable economic activities, national sustainable economic activities, national requirements that market actors should requirements that market actors should comply with when they wish to market comply with when they wish to market financial products or corporate bonds as financial products or corporate bonds as being environmentally sustainable, should being environmentally sustainable, should build on the uniform criteria for build on the uniform criteria for environmentally sustainable economic environmentally sustainable economic activities. Those market actors include activities. Those market actors include financial market participants offering financial market participants offering “green” financial products and non- sustainable financial products and non- financial companies issuing “green” financial companies issuing sustainable corporate bonds. corporate bonds.

Or. en

Amendment 177 Mireille D'Ornano

Proposal for a regulation Recital 15

Text proposed by the Commission Amendment

(15) To avoid market fragmentation as (15) To avoid market fragmentation as well as harm to consumer interests due to well as harm to consumer interests due to divergent notions of environmentally divergent notions of environmentally sustainable economic activities, national sustainable economic activities, national requirements that market actors should requirements that market actors should comply with when they wish to market comply with when they wish to market financial products or corporate bonds as financial products or corporate bonds as being environmentally sustainable, should being environmentally sustainable, could build on the uniform criteria for build on the uniform criteria for environmentally sustainable economic environmentally sustainable economic activities. Those market actors include activities. Those market actors include financial market participants offering financial market participants offering “green” financial products and non- “green” financial products and non- financial companies issuing “green” financial companies issuing “green” corporate bonds. corporate bonds.

Or. fr

Amendment 178 AM\1172566EN.docx 41/162 PE632.153v01-00 EN Othmar Karas

Proposal for a regulation Recital 15 a (new)

Text proposed by the Commission Amendment

(15 a) In line with the principle of proportionality the requirements of this Regulation should not apply to small and non-complex institutions as defined under [PO insert reference to relevant Article of Regulation (EU) 575/2013].

Or. en

Amendment 179 Markus Ferber

Proposal for a regulation Recital 16

Text proposed by the Commission Amendment

(16) To avoid harming consumer (16) To avoid harming consumer interests, fund managers and institutional interests, fund managers and institutional investors offering financial products as investors offering financial products as environmentally sustainable, should environmentally sustainable, should disclose how and to what extent the disclose relevant information in line with criteria for environmentally sustainable the provisions outlined in the Regulation economic activities are used to determine on disclosures relating to sustainable the environmental sustainability of the investments and sustainability risks and investments. The information disclosed amending Directive (EU)2016/2341; should enable investors to understand the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities and thus the degree of environmental sustainability of the investment. The Commission should specify the information that needs to be disclosed for that purpose. That information should enable national competent authorities to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national law.

Or. en PE632.153v01-00 42/162 AM\1172566EN.docx EN Justification

All disclosure obligations are outlined in the Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341. Introducing a second sustainable finance disclosure regime is not necessary.

Amendment 180 Sirpa Pietikäinen

Proposal for a regulation Recital 16

Text proposed by the Commission Amendment

(16) To avoid harming consumer (16) To inform retail investors and interests, fund managers and institutional ensure consumer protection, fund investors offering financial products as managers and institutional investors environmentally sustainable, should offering financial products as disclose how and to what extent the environmentally sustainable, should criteria for environmentally sustainable disclose the degree of environmental economic activities are used to determine sustainability of the investments and their the environmental sustainability of the environmental impact. The information investments. The information disclosed disclosed should enable investors to should enable investors to understand the understand the criteria and indicators used share of the investment funding for identifying the environmental impact, environmentally sustainable economic the degree of environmental sustainability activities as a percentage of all economic of the investment as well as the percentage activities and thus the degree of of investee companies' turnover environmental sustainability of the supporting activities that qualify as investment. The Commission should environmentally sustainable or with specify the information that needs to be negative environmental impact. The disclosed for that purpose. That Commission should specify the information should enable national information that needs to be disclosed in competent authorities to verify compliance audited annual and management reports with the disclosure obligation easily, and to for that purpose and to be audited by enforce that obligation in accordance with independent auditors as part of integrated applicable national law. reporting. That audited and verified information should enable national competent authorities, and when necessary to the ESAs, to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national and Union law. The disclosure requirements should be in line with global disclosure requirement initiatives such as the Global Reporting Initiative and the UN Principles for Responsible Investment. The independent auditors should be subject to

AM\1172566EN.docx 43/162 PE632.153v01-00 EN authorisation by the ESAs.

Or. en

Amendment 181 Elena Gentile

Proposal for a regulation Recital 16

Text proposed by the Commission Amendment

(16) To avoid harming consumer (16) To inform retail investors and interests, fund managers and institutional ensure consumer protection, fund investors offering financial products as managers and institutional investors environmentally sustainable, should offering financial products as disclose how and to what extent the environmentally sustainable, should criteria for environmentally sustainable disclose environmental sustainability economic activities are used to determine aspect of investments including ESG the environmental sustainability of the selection criteria and their investments. The information disclosed environmentally impact. The information should enable investors to understand the disclosed should enable investors to share of the investment funding understand the criteria and indicators used environmentally sustainable economic for identifying the environmental impact, activities as a percentage of all economic the environmental sustainability aspects of activities and thus the degree of the investment. The Commission should environmental sustainability of the specify the information that needs to be investment. The Commission should disclosed for that purpose. The disclosure specify the information that needs to be requirements should build on the work of disclosed for that purpose. That the Global Reporting Initiative and the information should enable national UN Principles for Responsible competent authorities to verify Investment. compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national law.

Or. en

Amendment 182 Fulvio Martusciello

Proposal for a regulation Recital 16

Text proposed by the Commission Amendment

(16) To avoid harming consumer (16) To inform retail investors and PE632.153v01-00 44/162 AM\1172566EN.docx EN interests, fund managers and institutional ensure consumer protection, fund investors offering financial products as managers and institutional investors environmentally sustainable, should offering financial products as disclose how and to what extent the environmentally sustainable, should criteria for environmentally sustainable disclose environmental sustainability economic activities are used to determine aspect of investments including the ESG the environmental sustainability of the selection criteria and their environmental investments. The information disclosed impact. The information disclosed should should enable investors to understand the enable investors to understand the criteria share of the investment funding and indicators used for identifying the environmentally sustainable economic environmental impact, the environmental activities as a percentage of all economic sustainability aspects of the investment. activities and thus the degree of The Commission should specify the environmental sustainability of the information that needs to be disclosed for investment. The Commission should that purpose. The disclosure requirements specify the information that needs to be should build on the work of the Global disclosed for that purpose. That Reporting Initiative and the UN information should enable national Principles for Responsible Investments. competent authorities to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national law.

Or. en

Amendment 183 Elisabetta Gardini, Fulvio Martusciello, Alberto Cirio, Aldo Patriciello

Proposal for a regulation Recital 16

Text proposed by the Commission Amendment

(16) To avoid harming consumer (16) To avoid harming consumer interests, fund managers and institutional interests, fund managers and institutional investors offering financial products as investors offering financial products as environmentally sustainable, should environmentally sustainable, may choose disclose how and to what extent the criteria to disclose how and to what extent the for environmentally sustainable economic criteria for sustainable economic activities activities are used to determine the are used to determine the sustainability of environmental sustainability of the the investments. The information disclosed investments. The information disclosed could enable investors to understand the should enable investors to understand the share of the investment funding sustainable share of the investment funding economic activities as a percentage of all environmentally sustainable economic economic activities and thus the degree of activities as a percentage of all economic sustainability of the investment. activities and thus the degree of environmental sustainability of the investment. The Commission should AM\1172566EN.docx 45/162 PE632.153v01-00 EN specify the information that needs to be disclosed for that purpose. That information should enable national competent authorities to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national law.

Or. en

Amendment 184 Kay Swinburne

Proposal for a regulation Recital 16

Text proposed by the Commission Amendment

(16) To avoid harming consumer (16) To avoid harming consumer interests, fund managers and institutional interests, fund managers and institutional investors offering financial products as investors offering financial products as environmentally sustainable, should environmentally sustainable, should disclose how and to what extent the criteria disclose how and to what extent the criteria for environmentally sustainable economic for environmentally sustainable economic activities are used to determine the activities are used to determine the environmental sustainability of the environmental sustainability of the investments. The information disclosed investments. The information disclosed should enable investors to understand the should enable investors to understand the share of the investment funding share of the investment funding environmentally sustainable economic environmentally sustainable economic activities as a percentage of all economic activities as a percentage of all economic activities and thus the degree of activities and thus the degree of environmental sustainability of the environmental sustainability of the investment. The Commission should investment. The Commission should specify the information that needs to be specify the information that needs to be disclosed for that purpose. That disclosed for that purpose as well as the information should enable national frequency, format and recipients of the competent authorities to verify compliance disclosure. That information should enable with the disclosure obligation easily, and to national competent authorities to verify enforce that obligation in accordance with compliance with the disclosure obligation applicable national law. easily, and to enforce that obligation in accordance with applicable national law. The Commission should ensure that any new disclosure requirements complement those already required under existing legislation and do not lead to unnecessary duplication of reporting.

PE632.153v01-00 46/162 AM\1172566EN.docx EN Or. en

Amendment 185 Christofer Fjellner, Gunnar Hökmark

Proposal for a regulation Recital 16 a (new)

Text proposed by the Commission Amendment

(16 a) To further innovation, research and development in the area of climate change, where a high level of long-term investments are required, this Regulation should be aligned with other Union legislation. Thus, providing long-term stability in the regulatory framework without worsening the possibility for long- term investments.

Or. en

Amendment 186 Nils Torvalds, Fredrick Federley, Anneli Jäätteenmäki, Jytte Guteland, Ulrike Müller, Elsi Katainen, Petri Sarvamaa

Proposal for a regulation Recital 16 a (new)

Text proposed by the Commission Amendment

(16 a) To avoid harming the innovation climate in the EU and the Member States, this Regulation should be aligned with other Union legislation incentivising innovation, research and development, especially in the area of climate change, where a high level of long-term investments are required.

Or. en

Amendment 187 Markus Ferber, Christophe Hansen

AM\1172566EN.docx 47/162 PE632.153v01-00 EN Proposal for a regulation Recital 17

Text proposed by the Commission Amendment

(17) To avoid circumvention of the deleted disclosure obligation, that obligation should also apply where financial products are offered as having similar characteristics as environmentally sustainable investments, including those having as their target environmental protection in a broad sense. Financial market participants should not be required to invest only in environmentally sustainable economic activities determined in accordance with the technical screening criteria set out in this Regulation. They should be encouraged to inform the Commission if they consider that an economic activity that does not meet the technical screening criteria, or for which such criteria have not been established yet, should be considered environmentally sustainable, to help the Commission to evaluate the appropriateness of complementing or updating the technical screening criteria.

Or. en

Justification

All disclosure obligations are outlined in the Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341. Introducing a second sustainable finance disclosure regime is not necessary.

Amendment 188 Anne Sander

Proposal for a regulation Recital 17

Text proposed by the Commission Amendment

(17) To avoid circumvention of the (17) To avoid circumvention of the disclosure obligation, that obligation disclosure obligation, that obligation should also apply where financial products should also apply where financial products are offered as having similar characteristics are offered as having similar characteristics

PE632.153v01-00 48/162 AM\1172566EN.docx EN as environmentally sustainable as environmentally sustainable investments, including those having as investments, including those having as their target environmental protection in a their target environmental protection in a broad sense. Financial market participants broad sense. Financial market participants should not be required to invest only in should not be required to invest only in environmentally sustainable economic environmentally sustainable economic activities determined in accordance with activities determined in accordance with the technical screening criteria set out in the technical screening criteria set out in this Regulation. They should be this Regulation. They should be encouraged to inform the Commission if encouraged to inform the Commission if they consider that an economic activity that they consider that an economic activity that does not meet the technical screening does not meet the technical screening criteria, or for which such criteria have not criteria, or for which such criteria have not been established yet, should be considered been established yet, should be considered environmentally sustainable, to help the environmentally sustainable, to help the Commission to evaluate the Commission to evaluate the appropriateness of complementing or appropriateness of complementing or updating the technical screening criteria. updating the technical screening criteria. Similarly, financial market participants should continue to be allowed to pursue sustainable investment approaches with broader characteristics than mere allocation of capital to the areas defined in this regulation. Sustainable investment approaches should be allowed to include inter alia, ESG integration, screening, best in class, stewardship, engagement and voting;

Or. en

Amendment 189 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Recital 17

Text proposed by the Commission Amendment

(17) To avoid circumvention of the (17) To avoid circumvention of the disclosure obligation, that obligation disclosure obligation, that obligation should also apply where financial products should apply to all financial products. are offered as having similar Financial market participants should not be characteristics as environmentally required to invest only in environmentally sustainable investments, including those sustainable economic activities determined having as their target environmental in accordance with the technical screening protection in a broad sense. Financial criteria set out in this Regulation. market participants should not be required Financial market participants and other to invest only in environmentally actors should be encouraged to inform the AM\1172566EN.docx 49/162 PE632.153v01-00 EN sustainable economic activities determined Commission if they consider that an in accordance with the technical screening economic activity is incorrectly considered criteria set out in this Regulation. They to fulfil or not fulfil the technical should be encouraged to inform the screening criteria, or for which such Commission if they consider that an criteria have not been established yet, to economic activity that does not meet the help the Commission to evaluate the technical screening criteria, or for which appropriateness of complementing or such criteria have not been established yet, updating the technical screening criteria. should be considered environmentally sustainable, to help the Commission to evaluate the appropriateness of complementing or updating the technical screening criteria.

Or. en

Amendment 190 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 18

Text proposed by the Commission Amendment

(18) For the purposes of determining (18) For the purposes of determining whether an economic activity is whether an economic activity is environmentally sustainable, an exhaustive environmentally or socially sustainable, an list of environmental objectives should be exhaustive list of environmental and social laid down. objectives based on indicators measuring the environmental and social impact should be laid down.

Or. en

Amendment 191 Nils Torvalds, Fredrick Federley, Anneli Jäätteenmäki, Jytte Guteland, Elsi Katainen, Christofer Fjellner, Gunnar Hökmark, Petri Sarvamaa

Proposal for a regulation Recital 18

Text proposed by the Commission Amendment

(18) For the purposes of determining (18) For the purposes of determining whether an economic activity is whether an economic activity is environmentally sustainable, an exhaustive environmentally sustainable, an exhaustive list of environmental objectives should be list of environmental objectives should be PE632.153v01-00 50/162 AM\1172566EN.docx EN laid down. laid down, ensuring coherence with existing Union legislation, such as the Clean Energy Package.

Or. en

Amendment 192 Françoise Grossetête, Alain Lamassoure, Anne Sander

Proposal for a regulation Recital 18

Text proposed by the Commission Amendment

(18) For the purposes of determining (18) For the purposes of determining whether an economic activity is whether an economic activity is environmentally sustainable, an exhaustive environmentally sustainable, an exhaustive list of environmental objectives should be list of environmental objectives should be laid down. laid down, taking into account its impact on the entire industrial value chain.

Or. fr

Amendment 193 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Recital 18

Text proposed by the Commission Amendment

(18) For the purposes of determining (18) For the purposes of determining whether an economic activity is whether an economic activity is environmentally sustainable, an exhaustive environmentally sustainable or list of environmental objectives should be environmentally harmful, an exhaustive laid down. list of environmental objectives should be laid down.

Or. en

Amendment 194 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Recital 20 AM\1172566EN.docx 51/162 PE632.153v01-00 EN

Text proposed by the Commission Amendment

(20) For each environmental objective, (20) For each environmental objective, uniform criteria for considering economic uniform criteria for considering economic activities to be substantially contributing to activities to be substantially contributing to that objective should be laid down. One that objective should be laid down. element of the uniform criteria should be to Another element of the uniform criteria avoid significant harm to any of the should be identifying economic activities environmental objectives set out in this that significantly harm any of the Regulation. This is in order to avoid that environmental objectives set out in this investments are considered Regulation. The conditions for substantial environmentally sustainable although the contribution and for causing significant economic activities benefitting from those harm should enable investments into investments cause harm to the environmentally sustainable economic environment to an extent outweighing activities to make a real contribution to the their contribution to an environmental environmental objectives and should objective. The conditions for substantial enable to gradually shift investments away contribution and for not causing significant form environmentally harmful economic harm should enable investments into activities. environmentally sustainable economic activities to make a real contribution to the environmental objectives.

Or. en

Amendment 195 Markus Ferber, Christophe Hansen

Proposal for a regulation Recital 20

Text proposed by the Commission Amendment

(20) For each environmental objective, (20) For each environmental objective, uniform criteria for considering economic uniform criteria for considering economic activities to be substantially contributing to activities to be substantially contributing to that objective should be laid down. One that objective should be laid down. One element of the uniform criteria should be to element of the uniform criteria should be to avoid significant harm to any of the avoid significant harm to any of the environmental objectives set out in this environmental objectives set out in this Regulation. This is in order to avoid that Regulation. This is in order to avoid that investments are considered investments are considered environmentally sustainable although the environmentally sustainable although the economic activities benefitting from those economic activities benefitting from those investments cause harm to the environment investments cause harm to the environment to an extent outweighing their contribution to an extent outweighing their contribution to an environmental objective. The to an environmental objective. The conditions for substantial contribution and conditions for substantial contribution and PE632.153v01-00 52/162 AM\1172566EN.docx EN for not causing significant harm should for not causing significant harm should enable investments into environmentally enable investments into environmentally sustainable economic activities to make a sustainable economic activities to make a real contribution to the environmental real contribution to the environmental objectives. objectives. However, the establishment of the criterion to avoid significant harm to any of the environmental objectives should not lead to the creation of a black list or brown list.

Or. en

Amendment 196 Mireille D'Ornano

Proposal for a regulation Recital 20

Text proposed by the Commission Amendment

(20) For each environmental objective, (20) For each environmental objective, uniform criteria for considering economic uniform and precise criteria for activities to be substantially contributing to considering economic activities to be that objective should be laid down. One substantially contributing to that objective element of the uniform criteria should be to should be laid down. One element of the avoid significant harm to any of the uniform criteria should be to avoid environmental objectives set out in this significant harm to any of the Regulation. This is in order to avoid that environmental objectives set out in this investments are considered Regulation. This is in order to avoid that environmentally sustainable although the investments are considered economic activities benefitting from those environmentally sustainable although the investments cause harm to the environment economic activities benefitting from those to an extent outweighing their contribution investments cause harm to the environment to an environmental objective. The to an extent outweighing their contribution conditions for substantial contribution and to an environmental objective. The for not causing significant harm should conditions for substantial contribution and enable investments into environmentally for not causing significant harm should sustainable economic activities to make a enable investments into environmentally real contribution to the environmental sustainable economic activities to make a objectives. real contribution to the environmental objectives.

Or. fr

Amendment 197 Paul Tang, Simona Bonafè, Pervenche Berès

AM\1172566EN.docx 53/162 PE632.153v01-00 EN Proposal for a regulation Recital 21

Text proposed by the Commission Amendment

(21) Recalling the joint commitment of (21) Recalling the joint commitment of the European Parliament, the Council and the European Parliament, the Council and the Commission to pursue the principles the Commission to pursue the principles enshrined in the European Pillar of Social enshrined in the European Pillar of Social Rights in support of sustainable and Rights in support of sustainable and inclusive growth and recognising the inclusive growth and recognising the relevance of international minimum human relevance of international minimum human and labour rights and standards, and labour rights and standards, compliance with minimum safeguards compliance with minimum safeguards should be a condition for economic should be a condition for economic activities to qualify as environmentally activities to qualify as environmentally sustainable. For that reason economic sustainable. For that reason economic activities should only qualify as activities should only qualify as environmentally sustainable where they are environmentally sustainable where they are carried out observing the International carried out observing, firstly, the Labour Organisation’s (‘ILO’) declaration International Labour Organisation’s on Fundamental Rights and Principles at (‘ILO’) declaration on Fundamental Rights Work and the eight ILO core conventions. and Principles at Work and the eight ILO The ILO core conventions define human core conventions. The ILO core and labour rights that companies are due to conventions define human and labour respect. Several of these international rights that companies are due to respect. standards are also enshrined the Charter of Several of these international standards are Fundamental Rights of the European also enshrined the Charter of Fundamental Union, in particular the prohibition of Rights of the European Union, in particular slavery and forced labour and the principle the prohibition of slavery and forced labour of non-discrimination. Those minimum and the principle of non-discrimination. safeguards are without prejudice to the Secondly, the UN Principles for application of more stringent requirements Responsible Investment - Reporting on environment, health and safety and Framework should be observed. Thirdly, social sustainability set out in Union law, investors should take in account the where applicable. OECD Due Diligence Guidance for Responsible Business Conduct (2018). Due diligence in this context means the procedures undertakings carry out to identify, prevent, mitigate and account for sustainability risks as defined in [PO insert reference to Regulation on disclosures relating to sustainable investments and sustainability risks and its Annex I ]. Those minimum safeguards are without prejudice to the application of more stringent requirements on environment, health and safety and social sustainability set out in Union law, where applicable.

PE632.153v01-00 54/162 AM\1172566EN.docx EN Or. en

Amendment 198 Markus Ferber

Proposal for a regulation Recital 21

Text proposed by the Commission Amendment

(21) Recalling the joint commitment of (21) Recalling the joint commitment of the European Parliament, the Council and the European Parliament, the Council and the Commission to pursue the principles the Commission to pursue the principles enshrined in the European Pillar of Social enshrined in the European Pillar of Social Rights in support of sustainable and Rights in support of sustainable and inclusive growth and recognising the inclusive growth and recognising the relevance of international minimum human relevance of international minimum human and labour rights and standards, and labour rights and standards, compliance with minimum safeguards compliance with minimum safeguards should be a condition for economic should be a condition for economic activities to qualify as environmentally activities to qualify as environmentally sustainable. For that reason economic sustainable. For that reason economic activities should only qualify as activities should only qualify as environmentally sustainable where they are environmentally sustainable where they are carried out observing the International carried out observing the International Labour Organisation’s (‘ILO’) declaration Labour Organisation’s (‘ILO’) declaration on Fundamental Rights and Principles at on Fundamental Rights and Principles at Work and the eight ILO core conventions. Work and the eight ILO core conventions. The ILO core conventions define human The ILO core conventions define human and labour rights that companies are due to and labour rights that companies are due to respect. Several of these international respect and therefore serve as a sufficient standards are also enshrined the Charter of yardstick for sustainable economic Fundamental Rights of the European activity. Several of these international Union, in particular the prohibition of standards are also enshrined the Charter of slavery and forced labour and the principle Fundamental Rights of the European of non-discrimination. Those minimum Union, in particular the prohibition of safeguards are without prejudice to the slavery and forced labour and the principle application of more stringent requirements of non-discrimination. Those minimum on environment, health and safety and safeguards are without prejudice to the social sustainability set out in Union law, application of more stringent requirements where applicable. on environment, health and safety and social sustainability set out in Union law, where applicable.

Or. en

AM\1172566EN.docx 55/162 PE632.153v01-00 EN Justification

The ILO standards are sufficient to determine if an economic activity can be considered sustainable.

Amendment 199 Dimitrios Papadimoulis

Proposal for a regulation Recital 21 a (new)

Text proposed by the Commission Amendment

(21 a) The European Investment Bank (EIB) has an extensive experience in green bonds through mainly the Climate Awareness bond, which contributed to green bonds of 18 billion euro and 160 projects related to renewable energy, which unfortunately were distributed regionally in an uneven way without the appropriate long-term and regionally balanced planning. Nevertheless, public sector bodies such as the EIB and the ESAs, could monitor key developments to ensure the progressive scale-up and adaptability of the EU sustainability taxonomy.

Or. en

Amendment 200 Elena Gentile

Proposal for a regulation Recital 22

Text proposed by the Commission Amendment

(22) Given the specific technical details (22) Given the specific technical details needed to assess the environmental impact needed to assess the environmental impact of an economic activity and the fast- of an economic activity and the fast- changing nature of both science and changing nature of both science and technology, the criteria of environmentally technology, the criteria relevant for sustainable economic activities should be determining the environmental adapted regularly to those changes. For the sustainability of economic activities criteria to be up to date, based on scientific should be adapted regularly to those

PE632.153v01-00 56/162 AM\1172566EN.docx EN evidence and input from experts as well as changes. For the criteria and indicators to relevant stakeholders, the conditions for be up to date, based on scientific evidence substantial contribution and significant and input from experts as well as relevant harm should be specified with more stakeholders, the conditions for substantial granularity for different economic contribution and significant harm should be activities and should be updated regularly. specified with more granularity for To that purpose, granular and calibrated different economic activities and should be technical screening criteria for the different updated regularly. To that purpose, economic activities should be laid down by granular and calibrated technical screening the Commission, on the basis of the criteria and a set of harmonised technical input of a multi-stakeholders indicators for the different economic Platform on Sustainable Finance. activities should be laid down by the Commission, on the basis of the technical input of a multi-stakeholders Platform on Sustainable Finance.

Or. en

Amendment 201 Jo Leinen

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) Some economic activities have a (23) Some economic activities have a negative impact on the environment, and a negative impact on the environment, and a substantial contribution to one or more substantial contribution to one or more environmental objectives can be achieved environmental objectives can be achieved by reducing that negative impact. For those by reducing that negative impact. For those economic activities, it is appropriate to set economic activities, it is appropriate to set out technical screening criteria that require out technical screening criteria that require a substantial improvement in a substantial improvement in environmental performance compared to, environmental performance compared to, inter alia, the industry average. Those inter alia, the industry average. Those criteria should consider also the long term criteria should consider also the long term impact of a specific economic activity. impact of a specific economic activity, in particular the environmental benefits of products and services and the contribution of intermediate products, and thus provide an assessment of the impact of all the phases of manufacturing and use throughout the value chain and life cycle.

Or. de

AM\1172566EN.docx 57/162 PE632.153v01-00 EN Amendment 202 Bas Eickhout

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) Some economic activities have a (23) Some economic activities have a negative impact on the environment, and a negative impact on the environment, and a substantial contribution to one or more substantial contribution to one or more environmental objectives can be achieved environmental objectives can be achieved by reducing that negative impact. For those by reducing that negative impact. For those economic activities, it is appropriate to set economic activities, it is appropriate to set out technical screening criteria that require out technical screening criteria that require a substantial improvement in a substantial improvement in environmental performance compared to, environmental performance compared to, inter alia, the industry average. Those inter alia, the industry average in order to criteria should consider also the long term consider whether that the activity may impact of a specific economic activity. deliver a substantial contribution to one or more environmental objectives. Those criteria should consider also the long term impact of a specific economic activity and should ensure that economic activities contributing to carbon intensive lock-in effects are not considered sustainable economic activities.

Or. en

Amendment 203 Luke Ming Flanagan

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) Some economic activities have a (23) Some economic activities - such as negative impact on the environment, and a major trade deals - have a negative impact substantial contribution to one or more not just on local manufacturers, who environmental objectives can be achieved often cannot compete with lower-cost by reducing that negative impact. For those production bases from outside the economic activities, it is appropriate to set European Union, but also on the out technical screening criteria that require environment, and a substantial contribution a substantial improvement in to one or more environmental objectives environmental performance compared to, can be achieved by reducing that negative inter alia, the industry average. Those impact. For those economic activities, it is criteria should consider also the long term appropriate to set out technical screening PE632.153v01-00 58/162 AM\1172566EN.docx EN impact of a specific economic activity. criteria that require a substantial improvement in environmental performance compared to, inter alia, the industry average. Those criteria should consider also the long term impact of a specific economic activity.

Or. en

Amendment 204 Elena Gentile

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) Some economic activities have a (23) Some economic activities have a negative impact on the environment, and a negative impact on the environment, and a substantial contribution to one or more substantial contribution to one or more environmental objectives can be achieved environmental objectives can be achieved by reducing that negative impact. For those by reducing that negative impact. For those economic activities, it is appropriate to set economic activities, it is appropriate to set out technical screening criteria that require out technical screening criteria that require a substantial improvement in a substantial improvement in environmental performance compared to, environmental performance compared to, inter alia, the industry average. Those inter alia, the industry average in the criteria should consider also the long term country or region. Those criteria should impact of a specific economic activity. consider also the long term impact of a specific economic activity.

Or. en

Amendment 205 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) Some economic activities have a (23) Some economic activities have a negative impact on the environment, and a negative impact on the environment, and a substantial contribution to one or more substantial contribution to one or more environmental objectives can be achieved environmental objectives can be achieved by reducing that negative impact. For those by reducing that negative impact. For those economic activities, it is appropriate to set economic activities, it is appropriate to set AM\1172566EN.docx 59/162 PE632.153v01-00 EN out technical screening criteria that require out technical screening criteria that require a substantial improvement in an improvement in environmental environmental performance compared to, performance compared to, inter alia, the inter alia, the industry average. Those industry average. Those criteria should criteria should consider also the long term consider also the long term impact (i.e. impact of a specific economic activity. more than 3 years) of a specific economic activity.

Or. en

Amendment 206 Paul Tang, Simona Bonafè, Pervenche Berès

Proposal for a regulation Recital 24

Text proposed by the Commission Amendment

(24) An economic activity should not be (24) An economic activity should not be considered environmentally sustainable if considered environmentally sustainable if it causes more harm to the environment it does not bring about a net benefit to the than the benefits it brings. The technical environment. The technical screening screening criteria should identify the criteria should identify the minimum minimum requirements necessary to avoid requirements necessary to avoid a a significant harm to other objectives. significant harm to other objectives. When When establishing and updating the establishing and updating the technical technical screening criteria, the screening criteria, the Commission should Commission should ensure that those ensure that those criteria are based on criteria are based on available scientific available scientific evidence and are evidence and are updated regularly. Where updated regularly. Where scientific scientific evaluation does not allow for the evaluation does not allow for the risk to be risk to be determined with sufficient determined with sufficient certainty, the certainty, the precautionary principle precautionary principle should apply, in should apply, in line with Article 191 line with Article 191 TFEU. TFEU.

Or. en

Amendment 207 Fulvio Martusciello

Proposal for a regulation Recital 24

Text proposed by the Commission Amendment

(24) An economic activity should not be (24) An economic activity should not be PE632.153v01-00 60/162 AM\1172566EN.docx EN considered environmentally sustainable if considered environmentally sustainable if it causes more harm to the environment it causes more harm to the environment than the benefits it brings. The technical than the benefits it brings and it should screening criteria should identify the also not significantly harm any of the minimum requirements necessary to avoid other environmental objectives. The a significant harm to other objectives. technical screening criteria based on When establishing and updating the harmonised indicators should identify the technical screening criteria, the minimum requirements necessary to avoid Commission should ensure that those a significant harm to other objectives. criteria are based on available scientific When establishing and updating the evidence and are updated regularly. Where technical screening criteria and scientific evaluation does not allow for the harmonised indicators, the Commission risk to be determined with sufficient should ensure that those criteria and certainty, the precautionary principle indicators are based on available scientific should apply, in line with Article 191 evidence and are updated regularly. Where TFEU. scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.

Or. en

Amendment 208 Luke Ming Flanagan

Proposal for a regulation Recital 24

Text proposed by the Commission Amendment

(24) An economic activity should not be (24) An economic activity should not be considered environmentally sustainable if considered environmentally sustainable if it causes more harm to the environment it causes more harm to the environment than the benefits it brings. The technical than the benefits it brings, and in this screening criteria should identify the regard major trade deals should all have minimum requirements necessary to avoid an independent impact study completed a significant harm to other objectives. before they are implemented. The When establishing and updating the technical screening criteria should identify technical screening criteria, the the minimum requirements necessary to Commission should ensure that those avoid a significant harm to other criteria are based on available scientific objectives. When establishing and updating evidence and are updated regularly. Where the technical screening criteria, the scientific evaluation does not allow for the Commission should ensure that those risk to be determined with sufficient criteria are based on available scientific certainty, the precautionary principle evidence and are updated regularly. Where should apply, in line with Article 191 scientific evaluation does not allow for the TFEU. risk to be determined with sufficient certainty, the precautionary principle AM\1172566EN.docx 61/162 PE632.153v01-00 EN should apply, in line with Article 191 TFEU.

Or. en

Amendment 209 Françoise Grossetête, Alain Lamassoure, Anne Sander

Proposal for a regulation Recital 24

Text proposed by the Commission Amendment

(24) An economic activity should not be (24) An economic activity should not be considered environmentally sustainable if considered environmentally sustainable if it causes more harm to the environment it causes more harm to the environment than the benefits it brings. The technical than the benefits it brings. The technical screening criteria should identify the screening criteria should identify the minimum requirements necessary to avoid minimum requirements necessary to avoid a significant harm to other objectives. a significant harm to other objectives. When establishing and updating the When establishing and updating the technical screening criteria, the technical screening criteria, the Commission should ensure that those Commission should ensure that those criteria are based on available scientific criteria are based on available scientific evidence and are updated regularly. Where evidence, are updated regularly and take scientific evaluation does not allow for the account of the whole value chain and the risk to be determined with sufficient life cycle of technologies. It should also certainty, the precautionary principle ensure that they are updated regularly. should apply, in line with Article 191 Where scientific evaluation does not allow TFEU. for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.

Or. fr

Amendment 210 Markus Ferber

Proposal for a regulation Recital 24

Text proposed by the Commission Amendment

(24) An economic activity should not be (24) An economic activity should not be considered environmentally sustainable if considered environmentally sustainable if it causes more harm to the environment it causes more harm to the environment PE632.153v01-00 62/162 AM\1172566EN.docx EN than the benefits it brings. The technical than the benefits it brings. The technical screening criteria should identify the screening criteria should identify the minimum requirements necessary to avoid minimum requirements necessary to avoid a significant harm to other objectives. a significant harm to other objectives. When establishing and updating the When establishing and updating the technical screening criteria, the technical screening criteria, the Commission should ensure that those Commission should ensure that those criteria are based on available scientific criteria are reasonable, proportionate and evidence and are updated regularly. Where based on available scientific evidence and scientific evaluation does not allow for the are updated regularly. Where scientific risk to be determined with sufficient evaluation does not allow for the risk to be certainty, the precautionary principle determined with sufficient certainty, the should apply, in line with Article 191 precautionary principle should apply, in TFEU. line with Article 191 TFEU.

Or. en

Amendment 211 Anne Sander, Françoise Grossetête

Proposal for a regulation Recital 26

Text proposed by the Commission Amendment

(26) When establishing and updating the (26) When establishing and updating the technical screening criteria the technical screening criteria the Commission should also take into account Commission should also take into account the specificities of the infrastructure the specificities of the different sectors and sector and take into account take into account environmental, social and environmental, social and economic economic externalities within a cost- externalities within a cost-benefit analysis. benefit analysis. As for energy sector, the In that regard, the Commission should Commission should take into account consider the work of international article 194 of the TFEU and the Member organisations, such as the OECD, relevant State's right to determine the conditions Union legislation and standards, including for exploiting the energy sources, its Directive 2001/42/EC of the European choice between different energy sources Parliament and of the Council42 , Directive and the general structure of its energy 2011/92/EU of the European Parliament supply. In that regard, the Commission and of the Council43 Directive 2014/23/EU should consider the work of international of the European Parliament and of the organisations, such as the OECD, relevant Council44 , Directive 2014/24/EU of the Union legislation and standards, including European Parliament and of the Council45 , Directive 2001/42/EC of the European Directive 2014/25/EU of the European Parliament and of the Council42 , Directive Parliament and of the Council46 , and 2011/92/EU of the European Parliament current methodology. In that context, the and of the Council43 Directive 2014/23/EU technical screening criteria should promote of the European Parliament and of the appropriate governance frameworks Council44 , Directive 2014/24/EU of the integrating environmental, social and European Parliament and of the Council45 , AM\1172566EN.docx 63/162 PE632.153v01-00 EN governance factors, as referred to in the Directive 2014/25/EU of the European United Nations-supported Principles for Parliament and of the Council46 , and Responsible Investment47 , at all stages of a current methodology. In that context, the project's lifecycle. technical screening criteria should promote appropriate governance frameworks integrating environmental, social and governance factors, as referred to in the United Nations-supported Principles for Responsible Investment47 , at all stages of a project's lifecycle. ______42 Directive 2001/42/EC of the European 42 Directive 2001/42/EC of the European Parliament and of the Council of 27 June Parliament and of the Council of 27 June 2001 on the assessment of the effects of 2001 on the assessment of the effects of certain plans and programmes on the certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30). environment (OJ L 197, 21.7.2001, p. 30). 43 Directive 2011/92/EU of the European 43 Directive 2011/92/EU of the European Parliament and of the Council of 13 Parliament and of the Council of 13 December 2011 on the assessment of the December 2011 on the assessment of the effects of certain public and private effects of certain public and private projects on the environment (OJ L 26, projects on the environment (OJ L 26, 28.1.2012, p. 1). 28.1.2012, p. 1). 44 Directive 2014/23/EU of the European 44 Directive 2014/23/EU of the European Parliament and of the Council of 26 Parliament and of the Council of 26 February 2014 on the award of concession February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1). contracts (OJ L 94, 28.3.2014, p. 1). 45 Directive 2014/24/EU of the European 45 Directive 2014/24/EU of the European Parliament and of the Council of 26 Parliament and of the Council of 26 February 2014 on public procurement and February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). 28.3.2014, p. 65). 46 Directive 2014/25/EU of the European 46 Directive 2014/25/EU of the European Parliament and of the Council of 26 Parliament and of the Council of 26 February 2014 on procurement by entities February 2014 on procurement by entities operating in the water, energy, transport operating in the water, energy, transport and postal services sectors and repealing and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243). p. 243). 47 47 https://www.unpri.org/download?ac=1534. https://www.unpri.org/download?ac=1534.

Or. en

Amendment 212 Othmar Karas, Lukas Mandl

PE632.153v01-00 64/162 AM\1172566EN.docx EN

Proposal for a regulation Recital 26

Text proposed by the Commission Amendment

(26) When establishing and updating the (26) When establishing and updating the technical screening criteria the technical screening criteria the Commission should also take into account Commission should also take into account the specificities of the infrastructure the specificities of the different sectors and sector and take into account take into account environmental, social and environmental, social and economic economic externalities within a cost- externalities within a cost-benefit analysis. benefit analysis. In that regard, the In that regard, the Commission should Commission should consider the work of consider the work of international international organisations, such as the organisations, such as the OECD, relevant OECD, relevant Union legislation and Union legislation and standards, including standards, including Directive 2001/42/EC Directive 2001/42/EC of the European of the European Parliament and of the Parliament and of the Council42 , Directive Council42 , Directive 2011/92/EU of the 2011/92/EU of the European Parliament European Parliament and of the Council43 and of the Council43 Directive 2014/23/EU Directive 2014/23/EU of the European of the European Parliament and of the Parliament and of the Council44 , Directive Council44 , Directive 2014/24/EU of the 2014/24/EU of the European Parliament European Parliament and of the Council45 , and of the Council45 , Directive Directive 2014/25/EU of the European 2014/25/EU of the European Parliament Parliament and of the Council46 , and and of the Council46 , and current current methodology. In that context, the methodology. In that context, the technical technical screening criteria should promote screening criteria should promote appropriate governance frameworks appropriate governance frameworks integrating environmental, social and integrating environmental, social and governance factors, as referred to in the governance factors, as referred to in the United Nations-supported Principles for United Nations-supported Principles for Responsible Investment47 , at all stages of a Responsible Investment47 , at all stages of a project's lifecycle. project's lifecycle. ______42 Directive 2001/42/EC of the European 42 Directive 2001/42/EC of the European Parliament and of the Council of 27 June Parliament and of the Council of 27 June 2001 on the assessment of the effects of 2001 on the assessment of the effects of certain plans and programmes on the certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30). environment (OJ L 197, 21.7.2001, p. 30). 43 Directive 2011/92/EU of the European 43 Directive 2011/92/EU of the European Parliament and of the Council of 13 Parliament and of the Council of 13 December 2011 on the assessment of the December 2011 on the assessment of the effects of certain public and private effects of certain public and private projects on the environment (OJ L 26, projects on the environment (OJ L 26, 28.1.2012, p. 1). 28.1.2012, p. 1). 44 Directive 2014/23/EU of the European 44 Directive 2014/23/EU of the European Parliament and of the Council of 26 Parliament and of the Council of 26 February 2014 on the award of concession February 2014 on the award of concession AM\1172566EN.docx 65/162 PE632.153v01-00 EN contracts (OJ L 94, 28.3.2014, p. 1). contracts (OJ L 94, 28.3.2014, p. 1). 45 Directive 2014/24/EU of the European 45 Directive 2014/24/EU of the European Parliament and of the Council of 26 Parliament and of the Council of 26 February 2014 on public procurement and February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). 28.3.2014, p. 65). 46 Directive 2014/25/EU of the European 46 Directive 2014/25/EU of the European Parliament and of the Council of 26 Parliament and of the Council of 26 February 2014 on procurement by entities February 2014 on procurement by entities operating in the water, energy, transport operating in the water, energy, transport and postal services sectors and repealing and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243). p. 243). 47 47 https://www.unpri.org/download?ac=1534. https://www.unpri.org/download?ac=1534.

Or. en

Amendment 213 Lieve Wierinck, Thierry Cornillet, Ramon Tremosa i Balcells, Caroline Nagtegaal

Proposal for a regulation Recital 26 a (new)

Text proposed by the Commission Amendment

(26 a) In defining the technical screening criteria, the Commission should also take into account transitional measures towards activities that support the transition to a more sustainable, low- carbon economy.

Or. en

Amendment 214 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Recital 26 a (new)

Text proposed by the Commission Amendment

(26 a) In defining the technical screening criteria, the Commission should also take into account transitional measures PE632.153v01-00 66/162 AM\1172566EN.docx EN towards activities that support the transition to a sustainable low-carbon economy.

Or. en

Amendment 215 Sirpa Pietikäinen

Proposal for a regulation Recital 27

Text proposed by the Commission Amendment

(27) To avoid distorting competition (27) To encourage environmentally when raising financing for environmentally sustainable innovation and to avoid sustainable economic activities, the distorting competition when raising technical screening criteria should ensure financing for environmentally sustainable that all relevant economic activities within economic activities, the technical screening a specific sector can qualify as criteria should ensure that all relevant environmentally sustainable and are treated economic activities within economic equally if they contribute equally towards macro sectors (ie. NACE sectors such as one or more of the environmental agriculture, forestry and fishing, objectives laid out in this Regulation. The manufacturing, electricity, gas, steam and potential capacity to contribute towards air conditioning supply, construction, those environmental objectives may transportation and storage services) can however vary across sectors, which should qualify as environmentally sustainable and be reflected in the criteria. However, are treated equally if they contribute within each sector, those criteria should not equally towards one or more of the unfairly disadvantage certain economic environmental objectives laid out in this activities over others if the former Regulation while not significantly contribute towards the environmental harming any other environmental objectives to the same extent as the latter. objectives referred to in Articles 3 and 12. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the technical screening criteria. However, within each economic macro sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter while not significantly harming any other environmental objectives referred to in Articles 3 and 12.

Or. en

AM\1172566EN.docx 67/162 PE632.153v01-00 EN

Amendment 216 Karl-Heinz Florenz

Proposal for a regulation Recital 27

Text proposed by the Commission Amendment

(27) To avoid distorting competition (27) To encourage environmentally when raising financing for environmentally sustainable innovation and to avoid sustainable economic activities, the distorting competition when raising technical screening criteria should ensure financing for environmentally sustainable that all relevant economic activities within economic activities, the technical screening a specific sector can qualify as criteria should ensure that all relevant environmentally sustainable and are treated economic activities within major economic equally if they contribute equally towards sectors, including among others one or more of the environmental agriculture, construction, energy, objectives laid out in this Regulation. The chemicals, transportation and production, potential capacity to contribute towards can qualify as environmentally sustainable those environmental objectives may and are treated equally if they contribute however vary across sectors, which should equally towards one or more of the be reflected in the criteria. However, environmental objectives laid out in this within each sector, those criteria should not Regulation. The potential capacity to unfairly disadvantage certain economic contribute towards those environmental activities over others if the former objectives may however vary across contribute towards the environmental sectors, which should be reflected in the objectives to the same extent as the latter. criteria. However, within each sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Or. en

Justification

Technical screening criteria shall include all sectors contributing to sustainable development.

Amendment 217 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 27

Text proposed by the Commission Amendment

PE632.153v01-00 68/162 AM\1172566EN.docx EN (27) To avoid distorting competition (27) To encourage environmentally when raising financing for environmentally sustainable innovation and to avoid sustainable economic activities, the distorting competition when raising technical screening criteria should ensure financing for environmentally sustainable that all relevant economic activities within economic activities, the technical screening a specific sector can qualify as criteria should ensure that all relevant environmentally sustainable and are treated economic activities within a specific equally if they contribute equally towards sector, including among others one or more of the environmental manufacturing, agriculture, construction, objectives laid out in this Regulation. The energy and transportation can qualify as potential capacity to contribute towards environmentally sustainable and are treated those environmental objectives may equally if they contribute equally towards however vary across sectors, which should one or more of the environmental be reflected in the criteria. However, objectives laid out in this Regulation. The within each sector, those criteria should not potential capacity to contribute towards unfairly disadvantage certain economic those environmental objectives may activities over others if the former however vary across sectors, which should contribute towards the environmental be reflected in the criteria. However, objectives to the same extent as the latter. within each sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Or. en

Amendment 218 Othmar Karas, Lukas Mandl

Proposal for a regulation Recital 27

Text proposed by the Commission Amendment

(27) To avoid distorting competition (27) To avoid distorting competition when raising financing for environmentally when raising financing for environmentally sustainable economic activities, the sustainable economic activities, the technical screening criteria should ensure technical screening criteria should ensure that all relevant economic activities within that relevant economic activities within a specific sector can qualify as major economic sectors, including among environmentally sustainable and are treated others agriculture, construction, energy, equally if they contribute equally towards transportation and production, can qualify one or more of the environmental as environmentally sustainable and are objectives laid out in this Regulation. The treated equally if they contribute equally potential capacity to contribute towards towards one or more of the environmental those environmental objectives may objectives laid out in this Regulation. The however vary across sectors, which should potential capacity to contribute towards be reflected in the criteria. However, those environmental objectives may within each sector, those criteria should not however vary across sectors, which should AM\1172566EN.docx 69/162 PE632.153v01-00 EN unfairly disadvantage certain economic be reflected in industry specific criteria. activities over others if the former However, within each sector, those criteria contribute towards the environmental should not unfairly disadvantage certain objectives to the same extent as the latter. economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Or. en

Amendment 219 Markus Ferber, Christophe Hansen

Proposal for a regulation Recital 27

Text proposed by the Commission Amendment

(27) To avoid distorting competition (27) To avoid distorting competition when raising financing for environmentally when raising financing for environmentally sustainable economic activities, the sustainable economic activities, the technical screening criteria should ensure technical screening criteria should ensure that all relevant economic activities within that all relevant economic activities within a specific sector can qualify as a specific sector can qualify as environmentally sustainable and are treated environmentally sustainable and are treated equally if they contribute equally towards equally if they contribute equally towards one or more of the environmental one or more of the environmental objectives laid out in this Regulation. The objectives laid out in this Regulation. The potential capacity to contribute towards potential capacity to contribute towards those environmental objectives may those environmental objectives may however vary across sectors, which should however vary across sectors, which should be reflected in the criteria. However, be reflected in the criteria. Therefore, the within each sector, those criteria should not screening criteria should not result in the unfairly disadvantage certain economic creation of a black list or brown list. activities over others if the former However, within each sector, those criteria contribute towards the environmental should not unfairly disadvantage certain objectives to the same extent as the latter. economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Or. en

Amendment 220 Bas Eickhout

Proposal for a regulation PE632.153v01-00 70/162 AM\1172566EN.docx EN Recital 27

Text proposed by the Commission Amendment

(27) To avoid distorting competition (27) To avoid distorting competition when raising financing for environmentally when raising financing for environmentally sustainable economic activities, the sustainable economic activities, the technical screening criteria should ensure technical screening criteria should ensure that all relevant economic activities within that all relevant economic activities within a specific sector can qualify as a specific sector can qualify as environmentally sustainable and are treated environmentally sustainable and are treated equally if they contribute equally towards equally if, in the way these activities are one or more of the environmental carried out, they contribute equally objectives laid out in this Regulation. The towards one or more of the environmental potential capacity to contribute towards objectives laid out in this Regulation. The those environmental objectives may potential capacity to contribute towards however vary across sectors, which should those environmental objectives may be reflected in the criteria. However, however vary across sectors, which should within each sector, those criteria should not be reflected in the criteria. However, unfairly disadvantage certain economic within each sector, those criteria should not activities over others if the former unfairly disadvantage certain economic contribute towards the environmental activities over others if the former objectives to the same extent as the latter. contribute towards the environmental objectives to the same extent as the latter.

Or. en

Amendment 221 Elena Gentile

Proposal for a regulation Recital 27

Text proposed by the Commission Amendment

(27) To avoid distorting competition (27) To avoid distorting competition when raising financing for environmentally when raising financing for environmentally sustainable economic activities, the sustainable economic activities, the technical screening criteria should ensure technical screening criteria should ensure that all relevant economic activities within that all relevant economic activities within a specific sector can qualify as a specific sector can qualify as environmentally sustainable and are treated environmentally sustainable and are treated equally if they contribute equally towards equally if they contribute equally towards one or more of the environmental one or more of the environmental objectives laid out in this Regulation. The objectives laid out in this Regulation. The potential capacity to contribute towards potential capacity to contribute towards those environmental objectives may those environmental objectives may however vary across sectors, which should however vary across sectors, which should be reflected in the criteria. However, be reflected in the criteria. However, AM\1172566EN.docx 71/162 PE632.153v01-00 EN within each sector, those criteria should not within each sector, those criteria should be unfairly disadvantage certain economic applied to all market participants equally, activities over others if the former certain economic activities over others if contribute towards the environmental the former contribute towards the objectives to the same extent as the latter. environmental objectives to the same extent as the latter.

Or. en

Amendment 222 Karl-Heinz Florenz

Proposal for a regulation Recital 27 a (new)

Text proposed by the Commission Amendment

(27 a) Environmentally sustainable activities are the result of technologies and products developed all along the value-chain. For this reason, the technical screening criteria should consider the role of the whole value- chain, from the processing of raw materials to the final product and its waste phase, in the final delivery of environmental sustainable activities.

Or. en

Justification

Environmental sustainable activities depend on the cooperation between different sectors and economic Actros all along industrial value-chains. This aspect should be reflected in the technical screening criteria for environmental sustainable activities.

Amendment 223 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 27 a (new)

Text proposed by the Commission Amendment

(27 a) To avoid disrupting well- functioning value-chains, the technical screening criteria should consider that

PE632.153v01-00 72/162 AM\1172566EN.docx EN environmentally sustainable activities are enabled by technologies and products developed by multiple economic actors.

Or. en

Amendment 224 Sirpa Pietikäinen

Proposal for a regulation Recital 28

Text proposed by the Commission Amendment

(28) When establishing technical (28) When establishing technical screening criteria, the Commission should screening criteria, the Commission should assess whether adoption of those criteria assess potential transition risks, whether for environmentally sustainable activities the pace of the adoption of those criteria would give rise to stranded assets or for environmentally sustainable activities deliver inconsistent incentives, and would give rise to stranded assets or whether it would have any negative impact deliver inconsistent incentives, and on liquidity in financial markets. whether it would have any negative impact on liquidity in financial markets.

Or. en

Amendment 225 Othmar Karas, Lukas Mandl

Proposal for a regulation Recital 30

Text proposed by the Commission Amendment

(30) To ensure that investments are (30) To ensure that investments are channelled towards economic activities channelled towards economic activities that make the biggest positive impact on that make the biggest positive impact on the environmental objectives, the the environmental objectives, the Commission should give priority to the Commission should give priority to the establishment of technical screening establishment of technical screening criteria for the economic activities that criteria for the economic activities that potentially contribute most to the potentially contribute most to the environmental objectives. environmental objectives. Screening criteria should be based on the outcomes of projects to facilitate the identification and development of new technologies as well as to take duly into account of the AM\1172566EN.docx 73/162 PE632.153v01-00 EN scalability of these technologies.

Or. en

Amendment 226 Anne Sander

Proposal for a regulation Recital 30

Text proposed by the Commission Amendment

(30) To ensure that investments are (30) To ensure that investments are channelled towards economic activities channelled towards economic activities that make the biggest positive impact on that make the biggest positive impact on the environmental objectives, the the environmental objectives, the Commission should give priority to the Commission should give priority to the establishment of technical screening establishment of technical screening criteria for the economic activities that criteria for the economic activities that potentially contribute most to the potentially contribute most to the environmental objectives. environmental objectives, and as matter of priority to climate mitigation. The technical screening criteria should be flexible enough to introduce progressively new technologies and innovations.

Or. en

Amendment 227 Françoise Grossetête, Alain Lamassoure, Anne Sander

Proposal for a regulation Recital 31

Text proposed by the Commission Amendment

(31) Appropriate technical screening (31) Appropriate technical screening criteria should be established for the criteria should be established for the transport sector, including for mobile transport sector, including for mobile assets, which should take into account that assets, which should take into account the the transport sector, including international whole life cycle of technologies and the shipping, contributes close to 26% of total fact that the transport sector, including greenhouse gas emissions in the Union. As international shipping, contributes close to evidenced in the Action Plan on Financing 26% of total greenhouse gas emissions in Sustainable Growth48the transport sector the Union. As evidenced in the Action Plan represents about 30% of additional annual on Financing Sustainable Growth48 the investment needs for sustainable transport sector represents about 30% of PE632.153v01-00 74/162 AM\1172566EN.docx EN development in the Union, including by additional annual investment needs for increasing electrification or transition to sustainable development in the Union, cleaner modes of transport by promoting including by increasing electrification or modal shift and traffic management. transition to cleaner modes of transport by promoting modal shift and traffic management. ______48 COM(2018) 97 final. 48 COM(2018) 97 final.

Or. fr

Amendment 228 Sirpa Pietikäinen

Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria and the involve relevant stakeholders and build on harmonised indicators should also involve the advice of experts with proven relevant stakeholders and build on knowledge and experience in the relevant scientific evidence, best practice and areas. For that purpose, the Commission existing work and entities, notably, the should set up a Platform on sustainable European Commission Circular Economy finance. This Platform should be composed Platform, and the advice of experts with of experts representing both the public and proven knowledge and experience in the the private sector. Public sector relevant areas. For that purpose, the representatives should include experts from Commission should set up a Platform on the European Environmental Agency, the sustainable finance. This Platform should European Supervisory Authorities and the be composed of experts representing both European Investment Bank. Private sector the public and the private sector. Public experts should include representatives of sector representatives should include relevant stakeholders, including financial experts from the European Environment market actors, universities, research Agency and national environment institutes, associations and organisations. protection agencies, the European The Platform should advise the Supervisory Authorities, the European Commission on the development, analysis Financial Reporting Advisory Group, and and review of technical screening criteria, the European Investment Bank. Private including their potential impact on the sector experts should include valuation of assets that until the adoption representatives of relevant stakeholders, AM\1172566EN.docx 75/162 PE632.153v01-00 EN of the technical screening criteria were including financial market actors, considered as green assets under existing universities, research institutes, market practices. The Platform should also associations and organisations. The advise the Commission on whether the Platform should advise the Commission on technical screening criteria are suitable for the development, analysis and review of further uses in future Union policy technical screening criteria and the initiatives aimed at facilitating sustainable harmonised indicators, including their investment. potential impact on the valuation of assets that until the adoption of the technical screening criteria based on harmonised indicators were considered as sustainable assets or assets having a negative environmental impact under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria and indicators are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment. The Platform should advise the Commission on the development of sustainability accounting standards and integrated reporting standards for corporates and financial market participants, including through the revision of Directive 2013/34/EU.

Or. en

Amendment 229 Kay Swinburne

Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria should also involve relevant stakeholders and build on involve relevant stakeholders and build on the advice of experts with proven the advice of experts with proven knowledge and experience in the relevant knowledge and global experience in the areas. For that purpose, the Commission relevant areas. For that purpose, the should set up a Platform on sustainable Commission should set up a Platform on PE632.153v01-00 76/162 AM\1172566EN.docx EN finance. This Platform should be composed sustainable finance. This Platform should of experts representing both the public and be composed of experts representing both the private sector. Public sector the public and the private sector. Public representatives should include experts from sector representatives should include the European Environmental Agency, the experts from the European Environmental European Supervisory Authorities and the Agency, the European Supervisory European Investment Bank. Private sector Authorities and the European Investment experts should include representatives of Bank. Private sector experts should reflect relevant stakeholders, including financial the breadth of the sector and include market actors, universities, research representatives of relevant stakeholders, institutes, associations and organisations. including financial market actors, The Platform should advise the universities, research institutes, Commission on the development, analysis associations and organisations. Where and review of technical screening criteria, necessary the Platform should be allowed including their potential impact on the to request advice from non-members. The valuation of assets that until the adoption Platform should advise the Commission on of the technical screening criteria were the development, analysis and review of considered as green assets under existing technical screening criteria, including their market practices. The Platform should also potential impact on the valuation of assets advise the Commission on whether the that until the adoption of the technical technical screening criteria are suitable for screening criteria were considered as green further uses in future Union policy assets under existing market practices. The initiatives aimed at facilitating sustainable Platform should also advise the investment. Commission on whether the technical screening criteria are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Or. en

Amendment 230 Othmar Karas, Lukas Mandl

Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria should also involve relevant stakeholders and build on involve relevant stakeholders and build on the advice of experts with proven scientific evidence, socio-economic AM\1172566EN.docx 77/162 PE632.153v01-00 EN knowledge and experience in the relevant impact, best practice and the advice of areas. For that purpose, the Commission experts with proven knowledge and should set up a Platform on sustainable experience in all of the relevant areas. For finance. This Platform should be composed that purpose, the Commission should set up of experts representing both the public and a Platform on sustainable finance. This the private sector. Public sector Platform should be composed of a wide representatives should include experts from range of experts representing both the the European Environmental Agency, the public and the private sector to ensure that European Supervisory Authorities and the the specificities of all relevant sectors are European Investment Bank. Private sector duly taken into account. Public sector experts should include representatives of representatives should include experts from relevant stakeholders, including financial the European Environmental Agency, the market actors, universities, research European Supervisory Authorities and the institutes, associations and organisations. European Investment Bank. Private sector The Platform should advise the experts should include representatives of Commission on the development, analysis relevant stakeholders, including financial and review of technical screening criteria, market actors, representatives of the real including their potential impact on the economy including the manufacturing valuation of assets that until the adoption industry, universities, research institutes, of the technical screening criteria were associations and organisations. The considered as green assets under existing Platform should advise the Commission on market practices. The Platform should also the development, analysis and review of advise the Commission on whether the technical screening criteria, including their technical screening criteria are suitable for potential impact on the valuation of assets further uses in future Union policy that until the adoption of the technical initiatives aimed at facilitating sustainable screening criteria were considered as green investment. assets under existing market practices. The Platform should also advise the Commission on the suitability of the technical screening criteria.

Or. en

Amendment 231 Markus Ferber

Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria should also PE632.153v01-00 78/162 AM\1172566EN.docx EN involve relevant stakeholders and build on involve relevant stakeholders and build on the advice of experts with proven the advice of experts with proven knowledge and experience in the relevant knowledge and experience in the relevant areas. For that purpose, the Commission areas. For that purpose, the Commission should set up a Platform on sustainable should set up a Platform on sustainable finance. This Platform should be composed finance. This Platform should be composed of experts representing both the public and of experts representing both the public and the private sector. Public sector the private sector. Public sector representatives should include experts from representatives should include experts from the European Environmental Agency, the the European Environmental Agency, the European Supervisory Authorities and the European Supervisory Authorities and the European Investment Bank. Private sector European Investment Bank. Private sector experts should include representatives of experts shall include representatives of relevant stakeholders, including financial relevant stakeholders, including financial market actors, universities, research market actors, representatives of the real institutes, associations and organisations. economy representing a wide range of The Platform should advise the industries, universities, research institutes, Commission on the development, analysis associations and organisations. The and review of technical screening criteria, Platform should advise the Commission on including their potential impact on the the development, analysis and review of valuation of assets that until the adoption technical screening criteria, including their of the technical screening criteria were potential impact on the valuation of assets considered as green assets under existing that until the adoption of the technical market practices. The Platform should screening criteria were considered as green also advise the Commission on whether assets under existing market practices. the technical screening criteria are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Or. en

Justification

In order to give meaningful impact, the Platform on sustainable finance needs input from a broad range of sources.

Amendment 232 Karl-Heinz Florenz

Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations AM\1172566EN.docx 79/162 PE632.153v01-00 EN in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria should also involve relevant stakeholders and build on involve relevant stakeholders and build on the advice of experts with proven the advice of experts with proven knowledge and experience in the relevant knowledge and experience in the relevant areas. For that purpose, the Commission areas. For that purpose, the Commission should set up a Platform on sustainable should set up a Platform on sustainable finance. This Platform should be composed finance. This Platform should be composed of experts representing both the public and of experts representing both the public and the private sector. Public sector the private sector. Public sector representatives should include experts from representatives should include experts from the European Environmental Agency, the the European Environmental Agency, the European Supervisory Authorities and the European Supervisory Authorities and the European Investment Bank. Private sector European Investment Bank. Private sector experts should include representatives of experts should include representatives of relevant stakeholders, including financial relevant stakeholders, including financial market actors, universities, research market actors, universities, research institutes, associations and organisations. institutes, associations and organisations The Platform should advise the and major economic sectors, including Commission on the development, analysis among others agriculture, construction, and review of technical screening criteria, energy, chemicals, transportation and including their potential impact on the production. The Platform should advise valuation of assets that until the adoption the Commission on the development, of the technical screening criteria were analysis and review of technical screening considered as green assets under existing criteria, including their potential impact on market practices. The Platform should also the valuation of assets that until the advise the Commission on whether the adoption of the technical screening criteria technical screening criteria are suitable for were considered as green assets under further uses in future Union policy existing market practices. The Platform initiatives aimed at facilitating sustainable should also advise the Commission on investment. whether the technical screening criteria are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Or. en

Justification

Given the extent of technical expertise needed for the elaboration of technical screening criteria all relevant economic actors should be consulted.

Amendment 233 Fulvio Martusciello

Proposal for a regulation Recital 32 PE632.153v01-00 80/162 AM\1172566EN.docx EN

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria and the involve relevant stakeholders and build on harmonised indicators should also involve the advice of experts with proven relevant stakeholders and build on knowledge and experience in the relevant scientific evidence, best practice and the areas. For that purpose, the Commission advice of experts with proven knowledge should set up a Platform on sustainable and experience in the relevant areas. For finance. This Platform should be composed that purpose, the Commission should set up of experts representing both the public and a Platform on sustainable finance. This the private sector. Public sector Platform should be composed of experts representatives should include experts from representing both the public and the private the European Environmental Agency, the sector. Public sector representatives should European Supervisory Authorities and the include experts from the European European Investment Bank. Private sector Environmental Agency, the European experts should include representatives of Supervisory Authorities and the European relevant stakeholders, including financial Investment Bank. Private sector experts market actors, universities, research should include representatives of relevant institutes, associations and organisations. stakeholders, including financial market The Platform should advise the actors, universities, research institutes, Commission on the development, analysis associations and organisations. The and review of technical screening criteria, Platform should advise the Commission on including their potential impact on the the development, analysis and review of valuation of assets that until the adoption technical screening criteria and the of the technical screening criteria were harmonised indicators, including their considered as green assets under existing potential impact on the valuation of assets market practices. The Platform should also that until the adoption of the technical advise the Commission on whether the screening criteria were considered as green technical screening criteria are suitable for assets under existing market practices. The further uses in future Union policy Platform should also advise the initiatives aimed at facilitating sustainable Commission on whether the technical investment. screening criteria and indicators are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Or. en

Amendment 234 Elena Gentile

AM\1172566EN.docx 81/162 PE632.153v01-00 EN Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria and the involve relevant stakeholders and build on harmonised indicators should also involve the advice of experts with proven relevant stakeholders and build on knowledge and experience in the relevant scientific evidence, best practice and the areas. For that purpose, the Commission advice of experts with proven knowledge should set up a Platform on sustainable and experience in the relevant areas. For finance. This Platform should be composed that purpose, the Commission should set up of experts representing both the public and a Platform on sustainable finance. This the private sector. Public sector Platform should be composed of experts representatives should include experts from representing both the public and the private the European Environmental Agency, the sector. Public sector representatives should European Supervisory Authorities and the include experts from the European European Investment Bank. Private sector Environmental Agency, the European experts should include representatives of Supervisory Authorities, the European relevant stakeholders, including financial Investment Bank and National market actors, universities, research Promotional Banks and Institutions. institutes, associations and organisations. Private sector experts should include The Platform should advise the representatives of relevant stakeholders, Commission on the development, analysis including financial market actors, and review of technical screening criteria, manufacturing industries, universities, including their potential impact on the research institutes, associations and valuation of assets that until the adoption organisations. The Platform should advise of the technical screening criteria were the Commission on the development, considered as green assets under existing analysis and review of technical screening market practices. The Platform should also criteria and based on harmonised advise the Commission on whether the indicators were considered as sustainable technical screening criteria are suitable for assets under existing market practices. The further uses in future Union policy Platform should also advise the initiatives aimed at facilitating sustainable Commission on whether the technical investment. screening criteria and indicators are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Or. en

Amendment 235 PE632.153v01-00 82/162 AM\1172566EN.docx EN Mireille D'Ornano

Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria should also involve relevant stakeholders and build on involve relevant stakeholders and build on the advice of experts with proven the advice of experts with proven knowledge and experience in the relevant knowledge and experience in the relevant areas. For that purpose, the Commission areas. For that purpose, the Commission should set up a Platform on sustainable should set up a Platform on sustainable finance. This Platform should be composed finance. This Platform should be composed of experts representing both the public and of experts representing both the public and the private sector. Public sector the private sector. Public sector representatives should include experts from representatives should include experts from the European Environmental Agency, the the European Environmental Agency, European Supervisory Authorities and the experts from national environmental European Investment Bank. Private sector agencies, the European Supervisory experts should include representatives of Authorities and the European Investment relevant stakeholders, including financial Bank. Private sector experts should include market actors, universities, research representatives of relevant stakeholders, institutes, associations and organisations. including financial market actors, The Platform should advise the universities, research institutes, Commission on the development, analysis associations and organisations. The and review of technical screening criteria, Platform should advise the Commission on including their potential impact on the the development, analysis and review of valuation of assets that until the adoption technical screening criteria, including their of the technical screening criteria were potential impact on the valuation of assets considered as green assets under existing that until the adoption of the technical market practices. The Platform should also screening criteria were considered as green advise the Commission on whether the assets under existing market practices. The technical screening criteria are suitable for Platform should also advise the further uses in future Union policy Commission on whether the technical initiatives aimed at facilitating sustainable screening criteria are suitable for further investment. uses in future Union policy initiatives aimed at facilitating sustainable investment.

Or. fr

AM\1172566EN.docx 83/162 PE632.153v01-00 EN Amendment 236 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria and the involve relevant stakeholders and build on harmonised indicators should also involve the advice of experts with proven relevant stakeholders and build on the knowledge and experience in the relevant advice of experts with proven knowledge areas. For that purpose, the Commission and experience in the relevant areas. For should set up a Platform on sustainable that purpose, the Commission should set up finance. This Platform should be composed a Platform on sustainable finance. This of experts representing both the public and Platform should be composed of experts the private sector. Public sector representing both the public and the private representatives should include experts from sector. Public sector representatives should the European Environmental Agency, the include experts from the European European Supervisory Authorities and the Environmental Agency, the European European Investment Bank. Private sector Supervisory Authorities and the European experts should include representatives of Investment Bank. Private sector experts relevant stakeholders, including financial should include representatives of relevant market actors, universities, research stakeholders, including financial market institutes, associations and organisations. actors, manufacturing industries, The Platform should advise the universities, research institutes, Commission on the development, analysis associations and organisations. The and review of technical screening criteria, Platform should advise the Commission on including their potential impact on the the development, analysis and review of valuation of assets that until the adoption technical screening criteria, including their of the technical screening criteria were potential impact on the valuation of assets considered as green assets under existing that until the adoption of the technical market practices. The Platform should also screening criteria were considered as green advise the Commission on whether the assets under existing market practices. The technical screening criteria are suitable for Platform should also advise the further uses in future Union policy Commission on whether the technical initiatives aimed at facilitating sustainable screening criteria are suitable for further investment. uses in future Union policy initiatives aimed at facilitating sustainable investment.

Or. en

PE632.153v01-00 84/162 AM\1172566EN.docx EN Amendment 237 Giovanni La Via

Proposal for a regulation Recital 32

Text proposed by the Commission Amendment

(32) It is of particular importance that (32) It is of particular importance that the Commission when preparing the the Commission when preparing the development of the technical screening development of the technical screening criteria, carry out appropriate consultations criteria, carry out appropriate consultations in line with Better Regulation in line with Better Regulation requirements. The process for the requirements. The process for the establishment and the update of the establishment and the update of the technical screening criteria should also technical screening criteria should also involve relevant stakeholders and build on involve relevant stakeholders and build on the advice of experts with proven the advice of experts with proven knowledge and experience in the relevant knowledge and experience in the relevant areas. For that purpose, the Commission areas. For that purpose, the Commission should set up a Platform on sustainable should set up a Platform on sustainable finance. This Platform should be composed finance. This Platform should be composed of experts representing both the public and of experts representing both the public and the private sector. Public sector the private sector. Public sector representatives should include experts from representatives should include experts from the European Environmental Agency, the the European Environmental Agency, the European Supervisory Authorities and the European Supervisory Authorities, the European Investment Bank. Private sector European Investment Bank and National experts should include representatives of Promotional Banks and Institutions. relevant stakeholders, including financial Private sector experts should include market actors, universities, research representatives of relevant stakeholders, institutes, associations and organisations. including financial market actors, The Platform should advise the universities, research institutes, Commission on the development, analysis associations and organisations. The and review of technical screening criteria, Platform should advise the Commission on including their potential impact on the the development, analysis and review of valuation of assets that until the adoption technical screening criteria, including their of the technical screening criteria were potential impact on the valuation of assets considered as green assets under existing that until the adoption of the technical market practices. The Platform should also screening criteria were considered as green advise the Commission on whether the assets under existing market practices. The technical screening criteria are suitable for Platform should also advise the further uses in future Union policy Commission on whether the technical initiatives aimed at facilitating sustainable screening criteria are suitable for further investment. uses in future Union policy initiatives aimed at facilitating sustainable investment.

Or. en

AM\1172566EN.docx 85/162 PE632.153v01-00 EN Amendment 238 Barbara Kappel

Proposal for a regulation Recital 33

Text proposed by the Commission Amendment

(33) In order to specify the (33) The European Parliament and the requirements set out in this Regulation, Council should receive all documents at and particularly to establish and update the same time as Member States’ experts, granular and calibrated technical and the experts of the European Parliament screening criteria for different economic and the Council should systematically have activities as to what constitutes a access to meetings of Commission expert substantial contribution and significant groups dealing with the preparation of harm to the environmental objectives, the delegated acts. 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 in respect of the information required to comply with the disclosure obligation set out in Article 4 (3), and the technical screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. 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 the experts of the European Parliament and the Council should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Or. en

Amendment 239 Costas Mavrides PE632.153v01-00 86/162 AM\1172566EN.docx EN

Proposal for a regulation Recital 33

Text proposed by the Commission Amendment

(33) In order to specify the requirements (33) In order to specify the requirements set out in this Regulation, and particularly set out in this Regulation, and particularly to establish and update granular and to establish and update granular and calibrated technical screening criteria for calibrated technical screening criteria for different economic activities as to what different economic activities as to what constitutes a substantial contribution and constitutes a substantial contribution and significant harm to the environmental significant harm to the environmental objectives, the power to adopt acts in objectives, the power to adopt acts in accordance with Article 290 of the Treaty accordance with Article 290 of the Treaty on the Functioning of the European Union on the Functioning of the European Union should be delegated to the Commission in should be delegated to the Commission in respect of the information required to respect of the information required to comply with the disclosure obligation set comply with the disclosure obligation set out in Article 4 (3), and the technical out in Article 4 (3), and the technical screening criteria mentioned in Article screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is 9(2), Article 10(2) and Article 11(2). It is of particular importance that the of particular importance that the Commission carry out appropriate Commission carry out appropriate, consultations during its preparatory work, extensive consultations during its including at expert level, and that those preparatory work, including at expert and consultations be conducted in accordance user level, that impacts on the economy with the principles laid down in the are carefully assessed and that those Interinstitutional Agreement on Better consultations be conducted in accordance Law-Making of 13 April 2016. In with the principles laid down in the particular, to ensure equal participation in Interinstitutional Agreement on Better the preparation of delegated acts, the Law-Making of 13 April 2016. In European Parliament and the Council particular, to ensure equal participation in should receive all documents at the same the preparation of delegated acts, the time as Member States’ experts, and the European Parliament and the Council experts of the European Parliament and the should receive all documents at the same Council should systematically have access time as Member States’ experts, and the to meetings of Commission expert groups experts of the European Parliament and the dealing with the preparation of delegated Council should systematically have access acts. to meetings of Commission expert groups dealing with the preparation of delegated acts.

Or. en

Amendment 240 Simona Bonafè, Luigi Morgano

AM\1172566EN.docx 87/162 PE632.153v01-00 EN Proposal for a regulation Recital 33

Text proposed by the Commission Amendment

(33) In order to specify the requirements (33) In order to specify the requirements set out in this Regulation, and particularly set out in this Regulation, and particularly to establish and update granular and to establish and update granular and calibrated technical screening criteria for calibrated technical screening criteria for different economic activities as to what different economic activities as to what constitutes a substantial contribution and constitutes a substantial contribution and significant harm to the environmental significant harm to the environmental and objectives, the power to adopt acts in social objectives, the power to adopt acts accordance with Article 290 of the Treaty in accordance with Article 290 of the on the Functioning of the European Union Treaty on the Functioning of the European should be delegated to the Commission in Union should be delegated to the respect of the information required to Commission in respect of the information comply with the disclosure obligation set required to comply with the disclosure out in Article 4 (3), and the technical obligation set out in Article 4 (3), and the screening criteria mentioned in Article technical screening criteria mentioned in 6(2), Article 7(2), Article 8(2), Article Article 6(2), Article 7(2), Article 8(2), 9(2), Article 10(2) and Article 11(2). It is Article 9(2), Article 10(2), Article 11(2) of particular importance that the and Article 11a(2). It is of particular Commission carry out appropriate importance that the Commission carry out consultations during its preparatory work, appropriate consultations during its including at expert level, and that those preparatory work, including at expert level, consultations be conducted in accordance and that those consultations be conducted with the principles laid down in the in accordance with the principles laid down Interinstitutional Agreement on Better in the Interinstitutional Agreement on Law-Making of 13 April 2016. In Better Law-Making of 13 April 2016. In particular, to ensure equal participation in particular, to ensure equal participation in the preparation of delegated acts, the the preparation of delegated acts, the European Parliament and the Council European Parliament and the Council should receive all documents at the same should receive all documents at the same time as Member States’ experts, and the time as Member States’ experts, and the experts of the European Parliament and the experts of the European Parliament and the Council should systematically have access Council should systematically have access to meetings of Commission expert groups to meetings of Commission expert groups dealing with the preparation of delegated dealing with the preparation of delegated acts. acts.

Or. en

Amendment 241 Paul Tang, Pervenche Berès

Proposal for a regulation Recital 33

PE632.153v01-00 88/162 AM\1172566EN.docx EN Text proposed by the Commission Amendment

(33) In order to specify the requirements (33) In order to specify the requirements set out in this Regulation, and particularly set out in this Regulation, and particularly to establish and update granular and to establish and update granular and calibrated technical screening criteria for calibrated technical screening criteria for different economic activities as to what different economic activities as to what constitutes a substantial contribution and constitutes a substantial contribution and significant harm to the environmental significant harm to the environmental objectives, the power to adopt acts in objectives, the power to adopt acts in accordance with Article 290 of the Treaty accordance with Article 290 of the Treaty on the Functioning of the European Union on the Functioning of the European Union should be delegated to the Commission in should be delegated to the Commission in respect of the information required to respect of the information required to comply with the disclosure obligation set comply with the disclosure obligation set out in Article 4 (3), and the technical out in Article 4 (3), and the technical screening criteria mentioned in Article screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is 9(2), Article 10(2) and Article 11(2). It is of particular importance that the of particular importance that the Commission carry out appropriate Commission carry out appropriate public consultations during its preparatory work, consultations during its preparatory work, including at expert level, and that those and that those consultations be conducted consultations be conducted in accordance in accordance with the principles laid down with the principles laid down in the in the Interinstitutional Agreement on Interinstitutional Agreement on Better Better Law-Making of 13 April 2016. In Law-Making of 13 April 2016. In particular, to ensure equal participation in particular, to ensure equal participation in the preparation of delegated acts, the the preparation of delegated acts, the European Parliament and the Council European Parliament and the Council should receive all documents at the same should receive all documents at the same time as Member States’ experts, and the time as Member States’ experts, and the experts of the European Parliament and the experts of the European Parliament and the Council should systematically have access Council should systematically have access to meetings of Commission expert groups to meetings of Commission expert groups dealing with the preparation of delegated dealing with the preparation of delegated acts. acts.

Or. en

Amendment 242 Anne Sander

Proposal for a regulation Recital 34

Text proposed by the Commission Amendment

(34) To give sufficient time to the (34) To give sufficient time to the AM\1172566EN.docx 89/162 PE632.153v01-00 EN relevant actors to familiarise themselves relevant actors to familiarise themselves with the criteria for environmentally with the criteria for environmentally sustainable economic activities set out in sustainable economic activities set out in this Regulation and to prepare for their this Regulation and to prepare for their application, the obligations set out in this application, the obligations set out in this Regulation should become applicable, for Regulation should become applicable, for each environmental objective, six months each environmental objective, twelve after the relevant technical screening months after the relevant technical criteria have been adopted. screening criteria have been adopted.

Or. en

Amendment 243 Elena Gentile

Proposal for a regulation Recital 35

Text proposed by the Commission Amendment

(35) The application of this Regulation (35) The application of this Regulation should be reviewed regularly in order to should be reviewed regularly and at least assess the progress on the development of after two years in order to assess the technical screening criteria for progress on the development of technical environmentally sustainable activities, the screening criteria and harmonised use of the definition of environmentally indicators for environmentally and sustainable investment, and whether socially sustainable activities, the use of compliance with the obligations requires the definition of environmentally and the establishment of a verification socially sustainable investment, and mechanism. The review should include whether compliance with the obligations also an assessment of whether the scope of requires the establishment of a verification this Regulation should be extended to mechanism. The first review by 31 cover social sustainability objectives. December 2021 will also include an assessment of the extended to which, and when, the scope of this Regulation could be extended to cover objectives relating to the social aspects of the Sustainable Developments Goals meant to become the EU's new long-term development strategy.

Or. en

Amendment 244 Simona Bonafè, Luigi Morgano

Proposal for a regulation Recital 35 PE632.153v01-00 90/162 AM\1172566EN.docx EN

Text proposed by the Commission Amendment

(35) The application of this Regulation (35) The application of this Regulation should be reviewed regularly in order to should be reviewed regularly in order to assess the progress on the development of assess the progress on the development of technical screening criteria for technical screening criteria for environmentally sustainable activities, the environmentally and socially sustainable use of the definition of environmentally activities, the use of the definition of sustainable investment, and whether environmentally and socially sustainable compliance with the obligations requires investment, and whether compliance with the establishment of a verification the obligations requires the establishment mechanism. The review should include of a verification mechanism. also an assessment of whether the scope of this Regulation should be extended to cover social sustainability objectives.

Or. en

Amendment 245 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Recital 35

Text proposed by the Commission Amendment

(35) The application of this Regulation (35) The application of this Regulation should be reviewed regularly in order to should be reviewed regularly in order to assess the progress on the development of assess the progress on the development of technical screening criteria for technical screening criteria for environmentally sustainable activities, the environmentally sustainable and use of the definition of environmentally environmentally harmful activities and sustainable investment, and whether the use of the definition of environmentally compliance with the obligations requires sustainable investment. The review should the establishment of a verification include also an assessment of whether the mechanism. The review should include scope of this Regulation should be also an assessment of whether the scope of extended to cover social sustainability this Regulation should be extended to objectives. By 31 March 2020, the cover social sustainability objectives. Commission should, where appropriate, publish legislative proposals on the establishment of a verification mechanism of compliance.

Or. en

AM\1172566EN.docx 91/162 PE632.153v01-00 EN Justification

The verification mechanism of compliance should be developed with high priority, outside the foreseen review of the Regulation. Establishing a robust verification mechanism of compliance is vital to build trust in the functioning of the framework.

Amendment 246 Fulvio Martusciello

Proposal for a regulation Recital 35

Text proposed by the Commission Amendment

(35) The application of this Regulation (35) The application of this Regulation should be reviewed regularly in order to should be reviewed regularly and at least assess the progress on the development of annually in order to assess the progress on technical screening criteria for the development of technical screening environmentally sustainable activities, the criteria and harmonised indicators for use of the definition of environmentally environmentally sustainable activities, the sustainable investment, and whether use of the definition of environmentally compliance with the obligations requires sustainable investment, and whether the establishment of a verification compliance with the obligations requires mechanism. The review should include the establishment of a verification also an assessment of whether the scope of mechanism. The review should include this Regulation should be extended to also an assessment of the provisions cover social sustainability objectives. required for extending the scope of this Regulation should be extended to cover social sustainability objectives.

Or. en

Amendment 247 Dariusz Rosati, Andrzej Grzyb

Proposal for a regulation Recital 35

Text proposed by the Commission Amendment

(35) The application of this Regulation (35) The application of this Regulation should be reviewed regularly in order to should be reviewed regularly in order to assess the progress on the development of assess the progress on the development of technical screening criteria for technical screening criteria for environmentally sustainable activities, the environmentally sustainable activities, the use of the definition of environmentally use of the definition of environmentally sustainable investment, and whether sustainable investment, and whether

PE632.153v01-00 92/162 AM\1172566EN.docx EN compliance with the obligations requires compliance with the obligations requires the establishment of a verification the establishment of a verification mechanism. The review should include mechanism. The review should include also an assessment of whether the scope of also an assessment of whether the scope of this Regulation should be extended to this Regulation should be extended to cover social sustainability objectives. cover social and economic sustainability objectives.

Or. en

Amendment 248 Kateřina Konečná

Proposal for a regulation Article 1 – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an carbon based criteria for determining economic activity is environmentally whether an economic activity is sustainable for the purposes of establishing environmentally sustainable for the the degree of environmental sustainability purposes of establishing the environmental of an investment. sustainability of an individual investment project.

Or. en

Justification

There should be no punishment for individual sustainable projects initiated by companies, which might not have their overall portfolio based only on fully sustainable assets. To establish the criteria on carbon exposure is crucial for successful fight against climate change.

Amendment 249 Pavel Poc

Proposal for a regulation Article 1 – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an criteria for determining whether an economic activity is environmentally economic activity is environmentally sustainable for the purposes of establishing sustainable for the purposes of establishing

AM\1172566EN.docx 93/162 PE632.153v01-00 EN the degree of environmental sustainability the environmental sustainability of a of an investment. particular investment project, based on its carbon exposure.

Or. en

Justification

Determination of the degree of environmental sustainability of an investment should be based on the investment as such, not on the overall economic activity mix and underlying assets of the performing company. An investment project should be assessed on its merits alone, not based on the overall “rating” of the company. Technologically neutral approach based on emission standards should be adopted in line with the European decarbonisation target and the objectives of ensuring security of energy supply and competitiveness in a cost-effective and socially acceptable manner, taking into account the diversity of energy mix across Member States. The criteria should be carbon based and not to involve any broader range of indicators such as circular economy indicators or life-cycle.

Amendment 250 Markus Ferber

Proposal for a regulation Article 1 – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an criteria for determining the degree of economic activity is environmentally environmental impact and sustainability sustainable for the purposes of establishing of an economic activity and thereby the degree of environmental sustainability whether an economic activity is of an investment. environmentally sustainable for the purposes of establishing the degree of environmental sustainability of an investment made within the European Union.

Or. en

Justification

It should be clarified that this regulation only deals with investments inside the European Union.

Amendment 251 Françoise Grossetête, Alain Lamassoure, Anne Sander

PE632.153v01-00 94/162 AM\1172566EN.docx EN Proposal for a regulation Article premier – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an criteria for determining whether an economic activity is environmentally economic activity, a technology or a sustainable for the purposes of establishing service is environmentally sustainable for the degree of environmental sustainability the purposes of establishing the degree of of an investment. environmental sustainability of an investment.

Or. fr

Amendment 252 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 1 – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an criteria for determining whether an economic activity is environmentally economic activity is environmentally sustainable for the purposes of establishing sustainable or environmentally harmful the degree of environmental sustainability for the purposes of establishing the degree of an investment. of environmental sustainability of an investment.

Or. en

Amendment 253 Kay Swinburne

Proposal for a regulation Article 1 – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an criteria for determining whether an economic activity is environmentally economic activity is environmentally sustainable for the purposes of establishing sustainable for the purposes of establishing the degree of environmental sustainability the degree of environmental sustainability of an investment. of an investment made within the Union.

AM\1172566EN.docx 95/162 PE632.153v01-00 EN Or. en

Amendment 254 Paul Tang, Simona Bonafè, Pervenche Berès

Proposal for a regulation Article 1 – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an criteria for determining whether an economic activity is environmentally economic activity is environmentally or sustainable for the purposes of establishing socially sustainable for the purposes of the degree of environmental sustainability establishing the degree of environmental or of an investment. social sustainability of an investment.

Or. en

Amendment 255 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 1 – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an criteria for determining whether an economic activity is environmentally economic activity is environmentally or sustainable for the purposes of establishing socially sustainable for the purposes of the degree of environmental sustainability establishing the degree of environmental or of an investment. social sustainability of an investment.

Or. en

Amendment 256 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Article 1 – paragraph 1

Text proposed by the Commission Amendment

1. This Regulation establishes the 1. This Regulation establishes the criteria for determining whether an criteria for determining whether an PE632.153v01-00 96/162 AM\1172566EN.docx EN economic activity is environmentally economic activity is sustainable for the sustainable for the purposes of establishing purposes of establishing the degree of the degree of environmental sustainability sustainability of an investment. of an investment.

Or. en

Amendment 257 Pavel Poc

Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of sustainability-related requirements on financial products or corporate bonds that market actors in respect of financial are marketed as environmentally products or corporate bonds labelled as sustainable. environmentally sustainable in order to prevent greenwashing.

Or. en

Amendment 258 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of sustainability requirements on market financial products or corporate bonds that actors in respect of financial products or are marketed as environmentally corporate bonds that are marketed as sustainable. environmentally and socially sustainable.

Or. en

Amendment 259 Lieve Wierinck, Thierry Cornillet, Ramon Tremosa i Balcells, Caroline Nagtegaal

AM\1172566EN.docx 97/162 PE632.153v01-00 EN Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of requirements on financial market financial products or corporate bonds that participants in respect of financial are marketed as environmentally products or corporate bonds that are sustainable. marketed as environmentally sustainable.

Or. en

Amendment 260 Kateřina Konečná

Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of sustainability-related requirements on financial products or corporate bonds that market actors in respect of financial are marketed as environmentally products or corporate bonds advertised as sustainable. environmentally sustainable.

Or. en

Amendment 261 Paul Tang, Simona Bonafè, Pervenche Berès

Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of requirements on market actors in respect of financial products or corporate bonds that financial products or corporate bonds. are marketed as environmentally sustainable.

Or. en PE632.153v01-00 98/162 AM\1172566EN.docx EN

Amendment 262 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of requirements on market actors in respect of financial products or corporate bonds that financial products or corporate bonds. are marketed as environmentally sustainable.

Or. en

Amendment 263 Kay Swinburne

Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of requirements on market actors in respect of financial products or corporate bonds that financial products or corporate bonds that are marketed as environmentally are marketed to EU clients as sustainable. environmentally sustainable.

Or. en

Amendment 264 Elena Gentile

Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of requirements on market actors in respect of

AM\1172566EN.docx 99/162 PE632.153v01-00 EN financial products or corporate bonds that financial products or corporate bonds that are marketed as environmentally are marketed as environmentally and sustainable. socially sustainable.

Or. en

Amendment 265 Othmar Karas, Lukas Mandl

Proposal for a regulation Article 1 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) measures adopted by Member (a) measures adopted by Member States or by the Union setting out any States or by the Union setting out any requirements on market actors in respect of requirements on relevant market actors in financial products or corporate bonds that respect of financial products or corporate are marketed as environmentally bonds which are marketed as sustainable. environmentally sustainable.

Or. en

Justification

This amendment clarifies that this Regulation shall only apply to measures adopted by Member States or by the Union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally sustainable as well as to financial market participants offering financial products as environmentally sustainable investments or as investments having similar characteristics.

Amendment 266 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 1 – paragraph 2 – point a a (new)

Text proposed by the Commission Amendment

(a a) public financial assistance by Member States or by the Union to investments.

Or. en

PE632.153v01-00 100/162 AM\1172566EN.docx EN Amendment 267 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants offering financial products as offering financial products, where the use environmentally sustainable investments or of the taxonomy set out in this Regulation as investments having similar and disclosure requirements set out in characteristics. Article 4 paragraph 2 to define whether a financial product is environmentally sustainable or environmentally harmful is optional for a financial market participant acquiring a financial product and does not establish additional requirements beyond those set out in Directive 2007/36/EC.

Or. en

Amendment 268 Paul Tang, Simona Bonafè, Pervenche Berès

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants offering financial products as offering financial products. environmentally sustainable investments or as investments having similar characteristics.

Or. en

Amendment 269 Pavel Poc

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

AM\1172566EN.docx 101/162 PE632.153v01-00 EN (b) financial market participants (b) financial market participants offering financial products as offering financial products labelled as environmentally sustainable investments or environmentally sustainable, in order to as investments having similar prevent greenwashing. characteristics.

Or. en

Amendment 270 Kateřina Konečná

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants offering financial products as offering financial products advertised as environmentally sustainable investments or environmentally sustainable. as investments having similar characteristics.

Or. en

Amendment 271 Kay Swinburne

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants offering financial products as offering financial products or corporate environmentally sustainable investments or bonds as environmentally sustainable as investments having similar investments or as investments having characteristics. similar characteristics.

Or. en

Amendment 272 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Article 1 – paragraph 2 – point b PE632.153v01-00 102/162 AM\1172566EN.docx EN

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants offering financial products as offering financial products as environmentally sustainable investments or environmentally and socially sustainable as investments having similar investments or as investments having characteristics. similar characteristics.

Or. en

Amendment 273 Elena Gentile

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants offering financial products as offering financial products as environmentally sustainable investments or environmentally and socially sustainable as investments having similar investments or as investments having characteristics. similar characteristics.

Or. en

Amendment 274 Othmar Karas, Lukas Mandl

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants which offering financial products as are offering financial products as environmentally sustainable investments or environmentally sustainable investments or as investments having similar as investments that have similar characteristics. characteristics.

Or. en

Justification

This amendment clarifies that this Regulation shall only apply to measures adopted by Member States or by the Union setting out any requirements on market actors in respect of

AM\1172566EN.docx 103/162 PE632.153v01-00 EN financial products or corporate bonds that are marketed as environmentally sustainable as well as to financial market participants offering financial products as environmentally sustainable investments or as investments having similar characteristics.

Amendment 275 Kay Swinburne

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants offering financial products as offering EU clients financial products as environmentally sustainable investments or environmentally sustainable investments or as investments having similar as investments having similar characteristics. characteristics.

Or. en

Amendment 276 Anne Sander

Proposal for a regulation Article 1 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) financial market participants (b) financial market participants offering financial products as offering financial products marketed as environmentally sustainable investments or environmentally sustainable investments or as investments having similar as investments having similar characteristics. characteristics.

Or. en

Amendment 277 Lieve Wierinck, Thierry Cornillet, Ramon Tremosa i Balcells, Caroline Nagtegaal

Proposal for a regulation Article 1 – paragraph 2 – point b a (new)

Text proposed by the Commission Amendment

(b a) The criteria mentioned in Article 1 (1) may be used for the purpose PE632.153v01-00 104/162 AM\1172566EN.docx EN mentioned in that paragraph by financial services providers that are not addressed by Article 1 (2) on a voluntary basis, and with respect to other financial products than those established in Article 2, paragraph 1 point (c).

Or. en

Justification

This framework will provide the basis to define what sustainability entails. If it can be useful to other stakeholders to define sustainability, it would be a missed opportunity not to leave this option open to these.

Amendment 278 Herbert Dorfmann

Proposal for a regulation Article 1 – paragraph 2 – point b a (new)

Text proposed by the Commission Amendment

(b a) 'credit institutions' as defined in point (1) of Article 4 (1) of Regulation (EU) No 575/2013 which provides investment or credit risk-management processes with the exception of small and non-complex institutions defined under [PO insert reference to relevant Article] of Regulation (EU) No 575/2013];

Or. en

Amendment 279 Costas Mavrides

Proposal for a regulation Article 1 – paragraph 2 – point b a (new)

Text proposed by the Commission Amendment

(b a) 'credit institutions' as defined in point (1) of Article 4 (1) of Regulation (EU) No 575/2013 which provides investment or credit risk-management processes with the exception of small and

AM\1172566EN.docx 105/162 PE632.153v01-00 EN non-complex institutions defined under [PO insert reference to relevant Article of Regulation (EU) 575/2013];

Or. en

Amendment 280 Barbara Kappel

Proposal for a regulation Article 1 – paragraph 2 – point b a (new)

Text proposed by the Commission Amendment

(b a) 'credit institutions' as defined in point (1) of Article 4 (1) of Regulation (EU) No 575/2013 which provides investment or credit risk-management processes with the exception of non- complex institutions defined under [PO insert reference to relevant Article] of Regulation (EU) No 575/2013];

Or. en

Amendment 281 Luigi Morgano

Proposal for a regulation Article 1 – paragraph 2 – point b a (new) Proposal for a Regulation Article 1 – paragraph 2 – point b a (new)

Text proposed by the Commission Amendment

(b a) 'credit institutions' as defined by Article 4(1), point 1, of Regulation 575/2013/EU, which provide investment or credit-risk management processes, except for small and non-complex institutions, as defined by [PO please insert reference to relevant Article of Regulation (EU) 575/2013];

Or. en

PE632.153v01-00 106/162 AM\1172566EN.docx EN Amendment 282 Lieve Wierinck, Thierry Cornillet, Fredrick Federley, Caroline Nagtegaal

Proposal for a regulation Article 1 – paragraph 2 – point b b (new)

Text proposed by the Commission Amendment

(b b) financial market participants that use the taxonomy to define whether a financial product or service and/or investments is unsustainable. The use of the taxonomy to define whether a financial product or service and/ or investments is unsustainable shall be optional. Disclosure requirements, as defined under Article 4, paragraph 2, of this Regulation shall also be optional.

Or. en

Amendment 283 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 1 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2 a. The criteria referred to in Article 1 (1) may be used for the purpose mentioned in that paragraph by financial services providers that are not addressed by Article 1(2) on a voluntary basis, and with respect to other financial products than those established in the first paragraph of Article 2.

Or. en

Amendment 284 Othmar Karas, Lukas Mandl

Proposal for a regulation Article 1 – paragraph 2 a (new)

AM\1172566EN.docx 107/162 PE632.153v01-00 EN Text proposed by the Commission Amendment

2 a. These criteria shall apply to investment decisions falling under the scope of this Regulation which are taken after the entry into force of this Regulation.

Or. en

Amendment 285 Luke Ming Flanagan

Proposal for a regulation Article 1 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2 a. Major trade deals between the European Union and any other major country or conglomerate, and investments arising therefrom;

Or. en

Amendment 286 Markus Ferber

Proposal for a regulation Article 1 a (new)

Text proposed by the Commission Amendment

Article 1 a Exclusions This Regulation shall not apply to: - financial instruments or financial products that are not marketed as environmentally sustainable; - loan origination; - investments made outside the European Union; - financial market participants that do not offer financial products that are marketed as sustainable or having similar PE632.153v01-00 108/162 AM\1172566EN.docx EN characteristics; - credit institutions; - investment decisions made prior to the date of application of this regulation;

Or. en

Justification

Credit instituions and loan origination are already regulated under CRD/CRR. It should also be made clear that only those financial market participants and financial products, that are actually concerned with sustainable finance considerations, fall into the scope of this regulation.

Amendment 287 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 2 – paragraph 1 – point a a (new)

Text proposed by the Commission Amendment

(a a) 'environmentally harmful' means an investment that funds one or several economic activities that qualify under this Regulation as environmentally harmful.

Or. en

Amendment 288 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 2 – paragraph 1 – point a a (new)

Text proposed by the Commission Amendment

(a a) 'socially sustainable investment' means an investment that funds one or several economic activities that qualify under this Regulation as socially sustainable;

Or. en

AM\1172566EN.docx 109/162 PE632.153v01-00 EN Amendment 289 Elena Gentile

Proposal for a regulation Article 2 – paragraph 1 – point g a (new)

Text proposed by the Commission Amendment

(g a) 'socially sustainable investment' means an investment in an economic activity that contributes substantially to a socíal objective, and in particular an investment that contributes to tackling inequality, an investment fostering social cohesion, social integration and labour relations, and an investment in human capital or economically or socially disadvantages communities.

Or. en

Amendment 290 Dimitrios Papadimoulis

Proposal for a regulation Article 2 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1 a. 'sustainable investment' means an investment that funds one or several economic activities that meet the environmental, social and governance (ESG) targets;

Or. en

Amendment 291 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Article 2 – paragraph 1 – point a a (new)

Text proposed by the Commission Amendment

(a a) ‘socially sustainable investment’ means an investment that funds one or

PE632.153v01-00 110/162 AM\1172566EN.docx EN several economic activities that qualify under this Regulation as socially sustainable;

Or. en

Amendment 292 Luke Ming Flanagan

Proposal for a regulation Article 2 – paragraph 1 – point a a (new)

Text proposed by the Commission Amendment

(a a) Major trade deals shall mean any trade deal between the European Union and entities such as the USA, Canada, Japan, the Mercosur countries, etc.;

Or. en

Amendment 293 Bas Eickhout

Proposal for a regulation Article 2 – paragraph 1 – point b

Text proposed by the Commission Amendment

(b) ‘financial market participants’ (b) ‘financial market participants’ mean financial market participants as means any of the following: defined in Article 2 (a) of [Commission (i) an insurance undertaking which proposal for a Regulation on disclosures makes available an IBIP, an AIFM, an relating to sustainable investments and investment firm which provides portfolio sustainability risks and amending management, an IORP or a provider of a Directive (EU) 2016/2341]; pension product; (ii) a manager of a qualifying venture capital fund registered in accordance with Article 14 of Regulation (EU) No 345/2013; (iii) a manager of a qualifying social entrepreneurship fund registered in accordance with Article 15 of Regulation (EU) No 346/2013; (iv) a UCITS management company; (v) any issuers of issuances under the Prospectus Directive 2003/71/EC and the AM\1172566EN.docx 111/162 PE632.153v01-00 EN Prospectus Regulation (EU)2017/1129 not covered by points (i) to (iv)

Or. en

Amendment 294 Bas Eickhout

Proposal for a regulation Article 2 – paragraph 1 – point b a (new)

Text proposed by the Commission Amendment

(b a) ‘insurance undertaking’ means an insurance undertaking authorised in accordance with Article 18 of Directive 2009/138/EC or as defined in Article 13(1) of Directive 2009/138/EC, when providing an insurance coverage to an undertaking;

Or. en

Amendment 295 Sirpa Pietikäinen

Proposal for a regulation Article 2 – paragraph 1 – point c a (new)

Text proposed by the Commission Amendment

(c a) ‘insurance undertaking’ means an insurance undertaking as defined in Article 13(1) of Directive 2009/138/EC, when providing an insurance coverage to an undertaking;

Or. en

Amendment 296 Bas Eickhout

Proposal for a regulation Article 2 – paragraph 1 – point b b (new)

PE632.153v01-00 112/162 AM\1172566EN.docx EN Text proposed by the Commission Amendment

(b b) ‘IBIP’ means either of the following: (i) an insurance-based investment product as defined in Article 4(2) of Regulation (EU) No 1286/2014 the European Parliament and of the Council; (ii) an insurance product, made available to a professional investor, which offers a maturity or surrender value and where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations;

Or. en

Amendment 297 Bas Eickhout

Proposal for a regulation Article 2 – paragraph 1 – point b c (new)

Text proposed by the Commission Amendment

(b c) ‘AIFM’ means an AIFM as defined in Article 4(1)(b) of Directive 2011/61/EU;

Or. en

Amendment 298 Sirpa Pietikäinen

Proposal for a regulation Article 2 – paragraph 1 – point c

Text proposed by the Commission Amendment

(c) 'financial products' mean financial (c) 'financial products' mean financial products as defined in Article 2 (j) of products as defined in Article 2 (j) of [Commission proposal for a Regulation on [Commission proposal for a Regulation on disclosures relating to sustainable disclosures relating to sustainable investments and sustainability risks and investments and sustainability risks and amending Directive (EU) 2016/2341]; amending Directive (EU) 2016/2341] as well as issuances referred to in the

AM\1172566EN.docx 113/162 PE632.153v01-00 EN Directive 2010/73/EU (Prospectus Directive);

Or. en

Amendment 299 Sirpa Pietikäinen

Proposal for a regulation Article 2 – paragraph 1 – point c a (new)

Text proposed by the Commission Amendment

(c a) 'issuers' means listed undertaking referred to in the Directive 2010/73/EU (Prospectus Directive);

Or. en

Amendment 300 Stefan Gehrold

Proposal for a regulation Article 2 – paragraph 1 – point d

Text proposed by the Commission Amendment

(d) 'climate change mitigation' means (d) 'lessening the human influence on the process of holding the increase in the climate change' reflects the fact that a global average temperature to well below precise distinction must be drawn between 2 °C above pre-industrial levels and climate changes brought about solely by limiting the temperature increase to 1.5 °C human action and climate changes which above pre-industrial levels; are part of an ongoing natural process. Human influence on climate change should not bring about a temperature increase in excess of 2°C.

Or. de

Amendment 301 Lieve Wierinck, Thierry Cornillet, Ramon Tremosa i Balcells, Caroline Nagtegaal

Proposal for a regulation Article 2 – paragraph 1 – point d

PE632.153v01-00 114/162 AM\1172566EN.docx EN Text proposed by the Commission Amendment

(d) 'climate change mitigation' means (d) 'climate change mitigation' means the process of holding the increase in the the process of holding the increase in the global average temperature to well below 2 global average temperature to well below 2 °C above pre-industrial levels and limiting °C above pre-industrial levels and limiting the temperature increase to 1.5 °C above the temperature increase to 1.5 °C above pre-industrial levels; pre-industrial levels, including to make the transition to achieve these targets;

Or. en

Amendment 302 Simona Bonafè, Elena Gentile, Luigi Morgano

Proposal for a regulation Article 2 – paragraph 1 – point g

Text proposed by the Commission Amendment

(g) 'circular economy' means (g) 'circular economy' means maintaining the value of products, maintaining the value of products, materials and resources in the economy for materials and other resources in the as long as possible, and minimising waste, economy for as long as possible, thus including through the application of the reducing environmental impact and waste hierarchy as laid down in Article 4 minimising waste, including through the of Directive 2008/98/EC of the European application of the waste hierarchy as laid Parliament and of the Council;50 down in Article 4 of Directive 2008/98/EC of the European Parliament and of the Council and minimising the use of resources based on key circular economy indicators as set out in the monitoring framework on progress towards a circular economy, covering different stages of production, consumption, waste management and secondary raw materials; ______50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).

Or. en

AM\1172566EN.docx 115/162 PE632.153v01-00 EN Amendment 303 Fulvio Martusciello

Proposal for a regulation Article 2 – paragraph 1 – point g

Text proposed by the Commission Amendment

(g) 'circular economy' means (g) 'circular economy' means maintaining the value of products, maintaining the value of products, materials and resources in the economy for materials and resources in the economy for as long as possible, and minimising waste, as long as possible, and minimising waste, including through the application of the including through the application of the waste hierarchy as laid down in Article 4 waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European of Directive 2008/98/EC of the European Parliament and of the Council;50 Parliament and of the Council and minimising the use of resources based on key circular economy indicators as set out in the monitoring framework on progress towards a circular economy, covering different stages of production, consumption, waste management and secondary raw materials;50 ______50 Directive 2008/98/EC of the European 50 Directive 2008/98/EC of the European Parliament and of the Council of 19 Parliament and of the Council of 19 November 2008 on waste and repealing November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, certain Directives (OJ L 312, 22.11.2008, p. 3). p. 3).

Or. en

Amendment 304 Elena Gentile

Proposal for a regulation Article 2 – paragraph 1 – point g

Text proposed by the Commission Amendment

(g) 'circular economy' means (g) 'circular economy' means maintaining the value of products, maintaining the value of products, materials and resources in the economy for materials and resources in the economy for as long as possible, and minimising waste, as long as possible, and minimising waste, including through the application of the including through the application of the waste hierarchy as laid down in Article 4 waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European of Directive 2008/98/EC of the European Parliament and of the Council;50 Parliament and of the Council and PE632.153v01-00 116/162 AM\1172566EN.docx EN minimising the use of resources based on key circular economy indicators as set out in the monitoring framework on progress towards a circular economy covering different stages production, consumption, waste management and secondary raw materials. ______50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).

Or. en

Amendment 305 Nils Torvalds, Fredrick Federley, Anneli Jäätteenmäki, Jytte Guteland, Elsi Katainen, Christofer Fjellner, Gunnar Hökmark, Petri Sarvamaa

Proposal for a regulation Article 2 – paragraph 1 – point g

Text proposed by the Commission Amendment

(g) 'circular economy' means (g) 'circular economy' means maintaining the value of products, maintaining the value and usage of materials and resources in the economy for products, materials and resources in the as long as possible, and minimising waste, economy for as long as possible, and including through the application of the minimising waste, including through the waste hierarchy as laid down in Article 4 application of the waste hierarchy as laid of Directive 2008/98/EC of the European down in Article 4 of Directive 2008/98/EC Parliament and of the Council;50 of the European Parliament and of the Council;50 ______50 Directive 2008/98/EC of the European 50 Directive 2008/98/EC of the European Parliament and of the Council of 19 Parliament and of the Council of 19 November 2008 on waste and repealing November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, certain Directives (OJ L 312, 22.11.2008, p. 3). p. 3).

Or. en

Amendment 306 Simona Bonafè, Luigi Morgano AM\1172566EN.docx 117/162 PE632.153v01-00 EN

Proposal for a regulation Article 2 – paragraph 1 – point h – point i

Text proposed by the Commission Amendment

(i) the direct or indirect introduction, (i) the direct or indirect introduction, as a result of human activity, of substances, as a result of human activity, of substances, vibrations, heat, noise or other pollutants vibrations, heat, noise, light or other into air, water or land which may be pollutants into air, water or land which harmful to human health or the quality of may be harmful to human health or the the environment, may result in damage to quality of the environment, may result in material property, or may impair or damage to material property, or may impair interfere with amenities and other or interfere with amenities and other legitimate uses of the environment; legitimate uses of the environment;

Or. en

Amendment 307 Simona Bonafè, Elena Gentile, Luigi Morgano

Proposal for a regulation Article 2 – paragraph 1 – point h – point ii a (new)

Text proposed by the Commission Amendment

(ii a) in the context of water environment, pollution as defined in Article 2 (33) of Directive 2000/60/EC of the European Parliament and of the Council;

Or. en

Amendment 308 Nils Torvalds, Fredrick Federley, Anneli Jäätteenmäki, Jytte Guteland, Ulrike Müller, Elsi Katainen, Christofer Fjellner, Gunnar Hökmark, Petri Sarvamaa

Proposal for a regulation Article 2 – paragraph 1 – point j

Text proposed by the Commission Amendment

(j) 'energy efficiency' means using (j) 'energy efficiency' means energy energy more efficiently at all the stages of efficiency as defined in Article 2(4) of the energy chain from production to final Directive 2012/27/EU; consumption;

PE632.153v01-00 118/162 AM\1172566EN.docx EN Or. en

Amendment 309 Sirpa Pietikäinen

Proposal for a regulation Article 2 – paragraph 1 – point j

Text proposed by the Commission Amendment

(j) 'energy efficiency' means using (j) 'energy efficiency' means the ratio energy more efficiently at all the stages of of output of performance, service, goods the energy chain from production to final or energy, to input of energy. consumption;

Or. en

Amendment 310 Nils Torvalds, Fredrick Federley, Anneli Jäätteenmäki, Jytte Guteland, Ulrike Müller, Elsi Katainen, Christofer Fjellner, Gunnar Hökmark, Petri Sarvamaa

Proposal for a regulation Article 2 – paragraph 1 – point n

Text proposed by the Commission Amendment

(n) 'sustainable forest management' deleted means using forests and forest land in a way, and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, and that does not cause damage to other ecosystems.

Or. en

Amendment 311 Herbert Dorfmann, Franc Bogovič

Proposal for a regulation Article 2 – paragraph 1 – point n

AM\1172566EN.docx 119/162 PE632.153v01-00 EN Text proposed by the Commission Amendment

(n) 'sustainable forest management' (n) ’sustainable forest management’ means using forests and forest land in a means using forests and forest land in way, and at a rate, that maintains their accordance with applicable national biodiversity, productivity, regeneration legislation building on the sustainable capacity, vitality and their potential to forest management definition adopted in fulfil, now and in the future, relevant the Pan-European Ministerial Conference ecological, economic and social functions, on the Protection of Forests in Europe at local, national, and global levels, and (MCPFE), the commitments stemming that does not cause damage to other from the Regulation on the integration of ecosystems. land use, land use change and forestry (LULUCF), as well as the EU Timber Regulation.

Or. en

Amendment 312 Othmar Karas, Lukas Mandl

Proposal for a regulation Article 2 – paragraph 1 – point n

Text proposed by the Commission Amendment

(n) 'sustainable forest management' (n) ’sustainable forest management’ means using forests and forest land in a means using forests and forest land in way, and at a rate, that maintains their accordance with applicable national biodiversity, productivity, regeneration legislation building on the SFM definition capacity, vitality and their potential to adopted in the Ministerial Conference of fulfil, now and in the future, relevant Protection of Forests in Europe ecological, economic and social functions, (MCPFE), the commitments stemming at local, national, and global levels, and from the LULUCF Regulation as well as that does not cause damage to other from the EU Timber Regulation. ecosystems.

Or. en

Justification

This amendment acknowledges, in line with the principle of proportionality and the aim of reducing unnecessary bureaucratic burden, the definition adopted in the Ministerial Conference of Protection of Forests in Europe (MCPFE), the commitments stemming from the Regulation on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry (LULUCF Regulation) as well as the Regulation laying down the obligations of operators who place timber and timber products on the market (EU Timber Regulation).

PE632.153v01-00 120/162 AM\1172566EN.docx EN Amendment 313 Sirpa Pietikäinen

Proposal for a regulation Article 2 – paragraph 1 – point n

Text proposed by the Commission Amendment

(n) 'sustainable forest management' (n) 'sustainable forest management' means using forests and forest land in a means using forests and forest land in a way, and at a rate, that maintains their way that restores and at a rate, that biodiversity, productivity, regeneration maintains their biodiversity, productivity, capacity, vitality and their potential to regeneration capacity, vitality and their fulfil, now and in the future, relevant potential to fulfill and that delivers at least ecological, economic and social functions, at equal scale, now and in the future, at local, national, and global levels, and relevant ecological, economic and social that does not cause damage to other functions, at local, national, and global ecosystems. levels, and that does not cause damage to other ecosystems, while taking into account national forest legislation, EU Timber Regulation, EU LULUCF Regulation as well as in the case of wood- based bioenergy the requirements of EU Renewable Energy Directive.

Or. en

Amendment 314 Paul Tang, Pervenche Berès

Proposal for a regulation Article 2 – paragraph 1 – point n

Text proposed by the Commission Amendment

(n) 'sustainable forest management' (n) 'sustainable forest management' means using forests and forest land in a means using degraded forests and way, and at a rate, that maintains their degraded forest land in a way that biodiversity, productivity, regeneration maintains and restores their biodiversity, capacity, vitality and their potential to productivity, regeneration capacity, vitality fulfil, now and in the future, relevant and their potential to fulfil, and deliver at ecological, economic and social functions, least at equal scale, now and in the future, at local, national, and global levels, and relevant ecological, economic and social that does not cause damage to other functions, at local, national, and global ecosystems. levels, and that does not cause damage to other ecosystems;

Or. en

AM\1172566EN.docx 121/162 PE632.153v01-00 EN

Amendment 315 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Chapter 2 – title

Text proposed by the Commission Amendment

Environmentally sustainable economic Environmentally and socially sustainable activities economic activities

Or. en

Amendment 316 Simona Bonafè, Luigi Morgano

Proposal for a regulation Chapter 2 – title

Text proposed by the Commission Amendment

Environmentally sustainable economic Environmentally and socially sustainable activities economic activities

Or. en

Amendment 317 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 3 – title

Text proposed by the Commission Amendment

3 Criteria for environmentally 3 Criteria for environmentally and sustainable economic activities socially sustainable economic activities

Or. en

Amendment 318 Françoise Grossetête, Alain Lamassoure, Anne Sander

Proposal for a regulation

PE632.153v01-00 122/162 AM\1172566EN.docx EN Article 3 – paragraph 1 – introductory part

Text proposed by the Commission Amendment

For the purposes of establishing the degree For the purposes of establishing the degree of environmental sustainability of an of environmental sustainability of an investment, an economic activity shall be investment, an economic activity, a environmentally sustainable where that technology or a service shall be activity complies with all of the following environmentally sustainable where it criteria: complies with all of the following criteria:

Or. fr

Amendment 319 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 3 – paragraph 1 – introductory part

Text proposed by the Commission Amendment

For the purposes of establishing the degree For the purposes of establishing the degree of environmental sustainability of an of environmental or social sustainability of investment, an economic activity shall be an investment, an economic activity shall environmentally sustainable where that be environmentally and socially activity complies with all of the following sustainable where that activity complies criteria: with all of the following criteria:

Or. en

Amendment 320 Elena Gentile

Proposal for a regulation Article 3 – paragraph 1 – point a

Text proposed by the Commission Amendment

(a) the economic activity contributes (a) the economic activity contributes or substantially to one or more of the will contribute substantially to one or more environmental objectives set out in Article of the environmental or social objectives 5 in accordance with Articles 6 to 11; set out in Article 5 in accordance with Articles 6 to 11a;

Or. en

AM\1172566EN.docx 123/162 PE632.153v01-00 EN Amendment 321 Elena Gentile

Proposal for a regulation Article 3 – paragraph 1 – point a

Text proposed by the Commission Amendment

(a) the economic activity contributes (a) the economic activity contributes substantially to one or more of the substantially to one or more of the environmental objectives set out in Article environmental and social objectives set out 5 in accordance with Articles 6 to 11; in Article 5 in accordance with Articles 6 to 11a;

Or. en

Amendment 322 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 3 – paragraph 1 – point a

Text proposed by the Commission Amendment

(a) the economic activity contributes (a) the economic activity contributes substantially to one or more of the substantially to one or more of the environmental objectives set out in Article environmental or social objectives set out 5 in accordance with Articles 6 to 11; in Article 5 in accordance with Articles 6 to 11(a);

Or. en

Amendment 323 Lieve Wierinck, Thierry Cornillet, Ramon Tremosa i Balcells, Caroline Nagtegaal

Proposal for a regulation Article 3 – paragraph 1 – point a

Text proposed by the Commission Amendment

(a) the economic activity contributes (a) the economic activity contributes or substantially to one or more of the will contribute substantially to one or more environmental objectives set out in Article of the environmental objectives set out in 5 in accordance with Articles 6 to 11; Article 5 in accordance with Articles 6 to 11;

Or. en PE632.153v01-00 124/162 AM\1172566EN.docx EN

Amendment 324 Anne Sander, Alain Lamassoure

Proposal for a regulation Article 3 – paragraph 1 – point a

Text proposed by the Commission Amendment

(a) the economic activity contributes (a) the economic activity contributes or substantially to one or more of the will contribute substantially to one or more environmental objectives set out in Article of the environmental objectives set out in 5 in accordance with Articles 6 to 11; Article 5 in accordance with Articles 6 to 11;

Or. en

Amendment 325 Elena Gentile

Proposal for a regulation Article 3 – paragraph 1 – point b

Text proposed by the Commission Amendment

(b) the economic activity does not (b) the economic activity does not or significantly harm any of the will not significantly harm any of the environmental objectives set out in Article environmental objectives set out in Article 5 in accordance with Article 12; 5 in accordance with Article 12, nor the socially sustainable objective set out in Article 11a;

Or. en

Amendment 326 Anne Sander, Alain Lamassoure

Proposal for a regulation Article 3 – paragraph 1 – point b

Text proposed by the Commission Amendment

(b) the economic activity does not (b) the economic activity does not or significantly harm any of the will not significantly harm any of the environmental objectives set out in Article environmental objectives set out in Article 5 in accordance with Article 12; 5 in accordance with Article 12;

AM\1172566EN.docx 125/162 PE632.153v01-00 EN Or. en

Amendment 327 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 3 – paragraph 1 – point b

Text proposed by the Commission Amendment

(b) the economic activity does not (b) the economic activity does not significantly harm any of the significantly harm any of the environmental objectives set out in Article environmental and social objectives set out 5 in accordance with Article 12; in Article 5 in accordance with Article 12;

Or. en

Amendment 328 Elena Gentile

Proposal for a regulation Article 3 – paragraph 1 – point d

Text proposed by the Commission Amendment

(d) the economic activity complies (d) the economic activity complies with technical screening criteria, where the with technical screening criteria, including Commission has specified those in sustainable performance indicators at accordance with Articles 6(2), 7(2), 8(2), company or plant levels belonging to the 9(2), 10(2) and 11(2). economic activity, where the Commission has specified those in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2). Those technical screening criteria shall take into account planned investments pursuing one or more of the environmental objectives set out in Article 5.

Or. en

Amendment 329 Françoise Grossetête, Alain Lamassoure, Anne Sander

Proposal for a regulation Article 3 – paragraph 1 – point d

PE632.153v01-00 126/162 AM\1172566EN.docx EN

Text proposed by the Commission Amendment

(d) the economic activity complies (d) it complies with technical screening with technical screening criteria, where the criteria, where the Commission has Commission has specified those in specified those in accordance with Articles accordance with Articles 6(2), 7(2), 8(2), 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2). 9(2), 10(2) and 11(2). Those criteria shall take into account planned investments that contribute substantially to one or more of the environmental objectives listed in Article 5.

Or. fr

Justification

Technical screening criteria must be able to take account not only of economic activities but also of investments already planned which contribute to environmental sustainability.

Amendment 330 Anne Sander, Alain Lamassoure

Proposal for a regulation Article 3 – paragraph 1 – point d

Text proposed by the Commission Amendment

(d) the economic activity complies (d) the economic activity complies with technical screening criteria, where the with technical screening criteria, including Commission has specified those in sustainable performance indicators at accordance with Articles 6(2), 7(2), 8(2), company or plan levels belonging to the 9(2), 10(2) and 11(2). economic activity, where the Commission has specified those in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2).

Or. en

Amendment 331 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 3 – paragraph 1 – point d

Text proposed by the Commission Amendment

(d) the economic activity complies (d) the economic activity complies AM\1172566EN.docx 127/162 PE632.153v01-00 EN with technical screening criteria, where the with technical screening criteria, where the Commission has specified those in Commission has specified those, basing accordance with Articles 6(2), 7(2), 8(2), them on harmonised indicators, in 9(2), 10(2) and 11(2). accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2), 11(2) and 11a(2).

Or. en

Amendment 332 Molly Scott Cato

Proposal for a regulation Article 3 – paragraph 1 – point d a (new)

Text proposed by the Commission Amendment

(d a) Irrespective of the technical screening criteria referred to in point (d), the following economic activities shall not be considered environmentally sustainable: (i) the exploration, extraction, production, distribution, storage and processing of fossil fuels; (ii) the generation and distribution of nuclear power, including the construction of new nuclear power stations, the decommissioning of nuclear power stations as well as the exploration and extraction of fissile materials for the generation of nuclear power; (iii) the production of weapons of war of any kind and all other firearms; (iv) the cultivation, processing and sale of tobacco; (v) agricultural activities that are intensive and highly dependent on the use of chemicals, including intensive animal farming; (vi) the construction, operation and maintenance of aviation infrastructure;

Or. en

PE632.153v01-00 128/162 AM\1172566EN.docx EN Amendment 333 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 3 – paragraph 1 – point d a (new)

Text proposed by the Commission Amendment

(d a) the economic activity is carried out in compliance with procedures and internal rules adopted by the undertaking in order to mitigate any negative impact on sustainability.

Or. en

Amendment 334 Pavel Poc

Proposal for a regulation Article 3 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a The criteria shall take into account the specificities of the different sectors, geographical dispositions, environmental, social and economic externalities within a cost-benefit analysis. Relevant economic activities within major economic sectors, including among others agriculture, construction, energy, transportation and production, should qualify as environmentally sustainable and should be treated equally if they contribute towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may vary across sectors and regions, which should be reflected in the criteria.

Or. en

Justification

Technologically neutral approach should be adopted taking also into account the specificities across sectors and regions in order to focus as much as possible on the primary decarbonisation goal. AM\1172566EN.docx 129/162 PE632.153v01-00 EN

Amendment 335 Kateřina Konečná

Proposal for a regulation Article 3 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. Significant differences in Member States regarding their economies, sectors and geographical dispositions shall be reflected in the criteria. Economic activity which contributes to any of the environmental objectives laid out in this Regulation shall be treated as sustainable.

Or. en

Justification

It is important to allow for differences in regions and sectors. All activities, which bring European Union closer to our goal of decreasing the emissions, should be labelled as sustainable.

Amendment 336 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Article 3 a (new)

Text proposed by the Commission Amendment

Article 3 a Criteria for socially sustainable economic activities For the purposes of establishing the degree of social sustainability of an investment, an economic activity shall be socially sustainable where that activity complies with all of the following criteria: (a) the economic activity contributes substantially to the social objectives set out in Article 5 in accordance with Articles 11a; (b) the economic activity does not significantly harm any of the PE632.153v01-00 130/162 AM\1172566EN.docx EN environmental objectives set out in Article 5 in accordance with Article 12, nor the social objectives set out in Article 11a; (c) the economic activity is carried out in compliance with the minimum safeguards laid down in Article 13 and does not lead to denial of basic needs including food, shelter and medical care, does not use conflict minerals, nor is carried out in cooperation with parties that infringe political and civil rights or supply strategic products and services to parties that directly contribute to the violation of political and civil rights; (d) does not relate to speculative financial activities, such as high frequency trading, short selling or speculative trading on commodities; (e) the economic activity meets the requirements of sound and transparent management structures and due diligence procedures, employee relations, transparent remuneration policies of relevant staff and tax compliance, whose ratio does not exceed the value of 5:1; (f) the economic activity complies with technical screening criteria, where the Commission has specified those in accordance with Articles 11a.

Or. en

Amendment 337 Molly Scott Cato

Proposal for a regulation Article 3 a (new)

Text proposed by the Commission Amendment

Article 3 a Criteria for economic activities with a negative environmental impact For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity shall AM\1172566EN.docx 131/162 PE632.153v01-00 EN be considered to be an economic activity with a negative environmental impact if it significantly harms any of the environmental objectives set out in Article 5, in accordance with Article 12. Irrespective of the technical screening criteria referred to in Article 12 paragraph 1 a (new), the following economic activities shall be considered economic activities with a significant negative environmental impact: (i) the exploration, extraction, production, distribution, storage and processing of fossil fuels; (ii) the generation and distribution of nuclear power, including the construction of new nuclear power stations as well as the exploration and extraction of fissile materials for the generation of nuclear power; (iii) the production of weapons of war of any kind and all other firearms; (iv) the cultivation, processing and sale of tobacco; (v) agricultural activities that are intensive and highly dependent on the use of chemicals, including intensive animal farming; (vi) the construction, operation and maintenance of aviation infrastructure;

Or. en

Amendment 338 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 3 a (new)

Text proposed by the Commission Amendment

Article 3 a Criteria for environmentally harmful economic activities

PE632.153v01-00 132/162 AM\1172566EN.docx EN For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity shall be environmentally harmful where that activity complies with the following criteria: (a) the economic activity significantly harms any of the environmental objectives set out in Article 5 in accordance with Article 12; (b) the economic activity fulfils the technical screening criteria for harmful activities, where the Commission has specified those in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2). (c) the economic activity does not significantly support the sustainable transition by contributing to the environmental objecives set out in Article 5 in accordance with Article 12.

Or. en

Amendment 339 Bas Eickhout

Proposal for a regulation Article 3 b (new)

Text proposed by the Commission Amendment

Article 3 b Criteria for economic activities with a significant negative environmental impact For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity shall be considered an economic activities with a significant negative environmental impact if it significantly harms any of the environmental objectives set out in Article 5 in accordance with Article 12.

Or. en

AM\1172566EN.docx 133/162 PE632.153v01-00 EN

Amendment 340 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – title

Text proposed by the Commission Amendment

Use of the criteria for environmentally Use of the criteria for environmentally sustainable economic activities sustainable and environmentally harmful economic activities

Or. en

Amendment 341 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Article 4 – title

Text proposed by the Commission Amendment

4 Use of the criteria for 4 Use of the criteria for environmentally sustainable economic environmentally and socially sustainable activities economic activities

Or. en

Amendment 342 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 4 – title

Text proposed by the Commission Amendment

4 Use of the criteria for 4 Use of the criteria for environmentally sustainable economic environmentally and socially sustainable activities economic activities

Or. en

Amendment 343

PE632.153v01-00 134/162 AM\1172566EN.docx EN Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – paragraph 1

Text proposed by the Commission Amendment

1. Member States shall apply the 1. Member States shall apply the criteria for determining environmentally criteria for determining environmentally sustainable economic activities set out in sustainable economic activities set out in Article 3 for the purposes of any measures Article 3 and the criteria for setting out requirements on market actors environmentally harmful economic in respect of financial products or activities set out in Article 3a for the corporate bonds that are marketed as purposes of any measures setting out ‘environmentally sustainable’. requirements on market actors in respect of financial products or corporate bonds.

Or. en

Amendment 344 Elisabetta Gardini, Fulvio Martusciello, Alberto Cirio, Aldo Patriciello

Proposal for a regulation Article 4 – paragraph 1

Text proposed by the Commission Amendment

1. Member States shall apply the 1. Member States shall apply the criteria for determining environmentally criteria for determining sustainable sustainable economic activities set out in activities set out in Article 3 for the Article 3 for the purposes of any measures purposes of any measures setting out setting out requirements on market actors requirements on market actors in respect of in respect of financial products or financial products or corporate bonds that corporate bonds that are marketed as are marketed as ‘sustainable’. ‘environmentally sustainable’.

Or. en

Amendment 345 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 4 – paragraph 1

Text proposed by the Commission Amendment

1. Member States shall apply the 1. Member States shall apply the

AM\1172566EN.docx 135/162 PE632.153v01-00 EN criteria for determining environmentally criteria for determining environmentally sustainable economic activities set out in and socially sustainable economic Article 3 for the purposes of any measures activities set out in Article 3 for the setting out requirements on market actors purposes of any measures setting out in respect of financial products or requirements on market actors in respect of corporate bonds that are marketed as financial products or corporate bonds. ‘environmentally sustainable’.

Or. en

Amendment 346 Elena Gentile

Proposal for a regulation Article 4 – paragraph 1

Text proposed by the Commission Amendment

1. Member States shall apply the 1. Member States shall apply the criteria for determining environmentally criteria for determining sustainable economic activities set out in environmentally and socially sustainable Article 3 for the purposes of any measures economic activities set out in Article 3 for setting out requirements on market actors the purposes of any measures setting out in respect of financial products or sustainability requirements on market corporate bonds that are marketed as actors in respect of financial products or ‘environmentally sustainable’. corporate bonds.

Or. en

Amendment 347 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Article 4 – paragraph 1

Text proposed by the Commission Amendment

1. Member States shall apply the 1. Member States shall apply the criteria for determining environmentally criteria for determining environmentally sustainable economic activities set out in or socially sustainable economic activities Article 3 for the purposes of any measures set out in Article 3 for the purposes of any setting out requirements on market actors measures setting out requirements on in respect of financial products or market actors in respect of financial corporate bonds that are marketed as products or corporate bonds that are ‘environmentally sustainable’. marketed as ‘environmentally sustainable’ or ‘socially sustainable’.

PE632.153v01-00 136/162 AM\1172566EN.docx EN Or. en

Amendment 348 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1 a. The Union and the Member States shall also apply the criteria for determining environmentally sustainable economic activities set out in Article 3 and the criteria for environmentally harmful economic activities set out in Article 3a for the purposes of requirements for Union and Member State public financial assistance to investments inter alia in the form of guaranties, equity, lending, subsidies, grants, export credits or public contracts. The Union and the Member States shall not support with public financial assistance environmentally harmful economic activities.

Or. en

Amendment 349 Markus Ferber

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants deleted offering financial products as environmentally sustainable investments, or as investments having similar characteristics, shall disclose information on how and to what extent the criteria for environmentally sustainable economic activities set out in Article 3 are used to determine the environmental sustainability of the investment. Where financial market participants consider

AM\1172566EN.docx 137/162 PE632.153v01-00 EN that an economic activity which does not comply with the technical screening criteria set out in accordance with this Regulation or for which those technical screening criteria have not been established yet, should be considered environmentally sustainable, they may inform the Commission.

Or. en

Justification

Disclosure requirements are already dealt with in the Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341 and must not be replicated here.

Amendment 350 Elisabetta Gardini, Fulvio Martusciello, Alberto Cirio, Aldo Patriciello

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products as sustainable environmentally sustainable investments, investments, may choose to disclose or as investments having similar information on how and to what extent the characteristics, shall disclose information criteria for sustainable activities set out in on how and to what extent the criteria for Article 3 are used to determine the environmentally sustainable economic sustainability of the investment. activities set out in Article 3 are used to determine the environmental sustainability of the investment. Where financial market participants consider that an economic activity which does not comply with the technical screening criteria set out in accordance with this Regulation or for which those technical screening criteria have not been established yet, should be considered environmentally sustainable, they may inform the Commission.

Or. en

Amendment 351 PE632.153v01-00 138/162 AM\1172566EN.docx EN Sirpa Pietikäinen

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products shall disclose environmentally sustainable investments, information on whether the products they or as investments having similar offer qualify as environmentally characteristics, shall disclose information sustainable investments pursuant to the on how and to what extent the criteria for criteria of Article 3, or as investments environmentally sustainable economic having a negative environmental impact activities set out in Article 3 are used to pursuant to the criteria set out in Article determine the environmental 3a. Where financial market participants sustainability of the investment. Where consider that an economic activity, for financial market participants consider that which those technical screening criteria an economic activity which does not have not been established yet, should be comply with the technical screening considered environmentally sustainable, criteria set out in accordance with this they shall inform the Commission. Regulation or for which those technical Financial market participants shall not screening criteria have not been established offer financial products as yet, should be considered environmentally environmentally sustainable investments, sustainable, they may inform the or as investments having similar Commission. characteristics, if those products do not qualify as environmentally sustainable. The information disclosed shall be verified by an independent auditor to ensure accuracy, as laid out in Article 4a.

Or. en

Amendment 352 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products shall disclose environmentally sustainable investments, information in order to define the degree or as investments having similar of environmental and social sustainability characteristics, shall disclose information of those products pursuant to the criteria on how and to what extent the criteria for of Article 3. Where financial market environmentally sustainable economic participants consider that an economic activities set out in Article 3 are used to activity which does not comply with the AM\1172566EN.docx 139/162 PE632.153v01-00 EN determine the environmental sustainability technical screening criteria set out in of the investment. Where financial market accordance with this Regulation or for participants consider that an economic which those technical screening criteria activity which does not comply with the have not been established yet, should be technical screening criteria set out in considered environmentally and socially accordance with this Regulation or for sustainable, they shall inform the which those technical screening criteria Commission. Financial market have not been established yet, should be participants shall not offer financial considered environmentally sustainable, products as environmentally or socially they may inform the Commission. sustainable investments, or as investments having similar characteristics, if those products do not qualify as environmentally or socially sustainable.

Or. en

Amendment 353 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products shall disclose environmentally sustainable investments, information on how the criteria for or as investments having similar environmentally sustainable economic characteristics, shall disclose information activities set out in Article 3 and the on how and to what extent the criteria for criteria for environmentally harmful environmentally sustainable economic economic activities set out in Article 3a activities set out in Article 3 are used to apply to a financial product. Where determine the environmental financial market participants consider that sustainability of the investment. Where an economic activity which does not financial market participants consider that comply with the technical screening an economic activity which does not criteria set out in accordance with this comply with the technical screening Regulation or for which those technical criteria set out in accordance with this screening criteria have not been established Regulation or for which those technical yet, should be considered environmentally screening criteria have not been established sustainable, they may inform the yet, should be considered environmentally Commission. sustainable, they may inform the Commission.

Or. en

Amendment 354 PE632.153v01-00 140/162 AM\1172566EN.docx EN Elena Gentile

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products as environmentally sustainable investments, environmentally sustainable investments, or as investments having similar or as investments having similar characteristics, shall disclose information characteristics, shall disclose information on how and to what extent the criteria for on how and to what extent the criteria for environmentally sustainable economic environmentally sustainable economic activities set out in Article 3 are used to activities set out in Article 3 are used to determine the environmental sustainability determine the environmental sustainability of the investment. Where financial market of the investment. Where financial market participants consider that an economic participants consider that an economic activity which does not comply with the activity for which technical screening technical screening criteria set out in criteria have not been established yet, accordance with this Regulation or for should be considered environmentally which those technical screening criteria sustainable, they shall inform the have not been established yet, should be Commission. Financial market considered environmentally sustainable, participants shall not offer financial they may inform the Commission. products as environmentally sustainable investments having similar characteristics, if those products do not qualify as environmentally sustainable.

Or. en

Amendment 355 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products as environmentally sustainable investments, environmentally sustainable investments, or as investments having similar or as investments having similar characteristics, shall disclose information characteristics, shall disclose information on how and to what extent the criteria for on how and to what extent the criteria for environmentally sustainable economic environmentally sustainable economic activities set out in Article 3 are used to activities set out in Article 3 are used to determine the environmental sustainability determine the environmental sustainability of the investment. Where financial market of the investment. Where financial market AM\1172566EN.docx 141/162 PE632.153v01-00 EN participants consider that an economic participants or other actors consider that activity which does not comply with the an economic activity is incorrectly technical screening criteria set out in considered fulfilling or not fulfilling the accordance with this Regulation or for technical screening criteria set out in which those technical screening criteria accordance with this Regulation or for have not been established yet, should be which those technical screening criteria considered environmentally sustainable, have not been established yet. they may inform the Commission.

Or. en

Amendment 356 Othmar Karas, Lukas Mandl

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products as environmentally sustainable investments, environmentally sustainable investments, or as investments having similar or as investments having similar characteristics, shall disclose information characteristics, shall disclose information on how and to what extent the criteria for on how and to what extent the criteria for environmentally sustainable economic environmentally sustainable economic activities set out in Article 3 are used to activities set out in Article 3 are used to determine the environmental sustainability determine the environmental sustainability of the investment. Where financial market of the investment. Where financial market participants consider that an economic participants consider that an economic activity which does not comply with the activity which does not comply with the technical screening criteria set out in technical screening criteria set out in accordance with this Regulation or for accordance with this Regulation or for which those technical screening criteria which those technical screening criteria have not been established yet, should be have not been established yet, should be considered environmentally sustainable, considered environmentally sustainable, they may inform the Commission. they may inform the Commission. The Commission shall, if appropriate, notify the Platform on Sustainable Finance of such requests by the financial market participants.

Or. en

Amendment 357 Françoise Grossetête, Alain Lamassoure, Anne Sander

PE632.153v01-00 142/162 AM\1172566EN.docx EN Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products as environmentally sustainable investments, environmentally sustainable investments, or as investments having similar or as investments having similar characteristics, shall disclose information characteristics, shall disclose information on how and to what extent the criteria for on how and to what extent the criteria for environmentally sustainable economic environmentally sustainable economic activities set out in Article 3 are used to activities set out in Article 3 are used to determine the environmental sustainability determine the environmental sustainability of the investment. Where financial market of the investment. Where financial market participants consider that an economic participants consider that an economic activity which does not comply with the activity which does not comply with the technical screening criteria set out in technical screening criteria set out in accordance with this Regulation or for accordance with this Regulation or for which those technical screening criteria which those technical screening criteria have not been established yet, should be have not been established yet, should be considered environmentally sustainable, considered environmentally sustainable, they may inform the Commission. they may inform the Commission. The Commission must then immediately forward this information to the Platform on Sustainable Finance.

Or. fr

Amendment 358 Marco Valli, Piernicola Pedicini, Laura Agea

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products as environmentally sustainable investments, environmentally or socially sustainable or as investments having similar investments, or as investments having characteristics, shall disclose information similar characteristics, shall disclose on how and to what extent the criteria for information on how and to what extent the environmentally sustainable economic criteria for environmentally sustainable activities set out in Article 3 are used to economic activities set out in Article 3 and determine the environmental sustainability the criteria for socially sustainable of the investment. Where financial market economic activities set out in Article 3a participants consider that an economic are used to determine the sustainability of activity which does not comply with the the investment. Where financial market AM\1172566EN.docx 143/162 PE632.153v01-00 EN technical screening criteria set out in participants consider that an economic accordance with this Regulation or for activity which does not comply with the which those technical screening criteria technical screening criteria set out in have not been established yet, should be accordance with this Regulation or for considered environmentally sustainable, which those technical screening criteria they may inform the Commission. have not been established yet, should be considered environmentally sustainable or socially sustainable, they may inform the Commission.

Or. en

Amendment 359 Kay Swinburne

Proposal for a regulation Article 4 – paragraph 2

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products or corporate environmentally sustainable investments, bonds as environmentally sustainable or as investments having similar investments, or as investments having characteristics, shall disclose information similar characteristics, shall disclose on how and to what extent the criteria for information on how and to what extent the environmentally sustainable economic criteria for environmentally sustainable activities set out in Article 3 are used to economic activities set out in Article 3 are determine the environmental sustainability used to determine the environmental of the investment. Where financial market sustainability of the investment. Where participants consider that an economic financial market participants consider that activity which does not comply with the an economic activity which does not technical screening criteria set out in comply with the technical screening accordance with this Regulation or for criteria set out in accordance with this which those technical screening criteria Regulation or for which those technical have not been established yet, should be screening criteria have not been established considered environmentally sustainable, yet, should be considered environmentally they may inform the Commission. sustainable, they may inform the Commission.

Or. en

Amendment 360 Anne Sander, Alain Lamassoure

Proposal for a regulation Article 4 – paragraph 2 PE632.153v01-00 144/162 AM\1172566EN.docx EN

Text proposed by the Commission Amendment

2. Financial market participants 2. Financial market participants offering financial products as offering financial products marketed as environmentally sustainable investments, environmentally sustainable investments, or as investments having similar or as investments having similar characteristics, shall disclose information characteristics, shall disclose information on how and to what extent the criteria for on how and to what extent the criteria for environmentally sustainable economic environmentally sustainable economic activities set out in Article 3 are used to activities set out in Article 3 are used to determine the environmental sustainability determine the environmental sustainability of the investment. Where financial market of the investment. Where financial market participants consider that an economic participants consider that an economic activity which does not comply with the activity which does not comply with the technical screening criteria set out in technical screening criteria set out in accordance with this Regulation or for accordance with this Regulation or for which those technical screening criteria which those technical screening criteria have not been established yet, should be have not been established yet, should be considered environmentally sustainable, considered environmentally sustainable, they may inform the Commission. they may inform the Commission.

Or. en

Amendment 361 Lieve Wierinck, Thierry Cornillet, Ramon Tremosa i Balcells, Caroline Nagtegaal

Proposal for a regulation Article 4 – paragraph 2 b (new)

Text proposed by the Commission Amendment

2 b. No disclosure requirements that are required under the [Commission proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341] shall be required in this Regulation;

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Amendment 362 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – paragraph 2 – subparagraph 1 (new) AM\1172566EN.docx 145/162 PE632.153v01-00 EN

Text proposed by the Commission Amendment

No disclosure requirements under the [PO please insert reference to Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341] shall be required in this Regulation;

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Amendment 363 Sirpa Pietikäinen

Proposal for a regulation Article 4 – paragraph 2 a (new) Article 4 – paragraph 2 ba (new)

Text proposed by the Commission Amendment

2 a. The financial market participant shall use the service of a third party authorised under Article 4a to check whether financial products comply with the criteria of Article 3 for environmentally sustainable economic activities. However, the use of such a service shall not, under any circumstances, affect the liability of the financial market participant in respect of their legal obligations under this Regulation. Where the financial market participant uses the service of a third party authorised pursuant to Article 4a to assess whether a financial product complies with the criteria set out in that Article, the disclosure according to Article 4(2) shall include a statement that compliance with the criteria for environmentally sustainable economic activities was confirmed by that authorised third party. The notification shall include the name of the authorised third party and its place of establishment.

Or. en

PE632.153v01-00 146/162 AM\1172566EN.docx EN Amendment 364 Bas Eickhout

Proposal for a regulation Article 4 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2 a. Financial market participants shall use the service of a third party authorised under Article 4a to check compliance with the requirements of paragraph 2.Credit institutions shall use the service of a third party authorised under Article 4a to check compliance with the requirements of paragraph 2a. Notwithstanding the first subparagraph, the use of such a service shall not, under any circumstances, affect the liability of the financial market participant in respect of their legal obligations under this Regulation. The disclosure requirement pursuant to Article 4(2) and 4(2a) shall include a statement that compliance with the requirements of these paragraphs was confirmed by that authorised third party. The notification shall include the name of the authorised third party and its place of establishment.

Or. en

Amendment 365 Barbara Kappel

Proposal for a regulation Article 4 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2 a. The financial market participant offering financial products as environmentally sustainable, or as investments having similar characteristics, is not responsible for the incorrect assessment of the environmental sustainability of an investment, if the assessment has been made in accordance with the criteria disclosed. The financial AM\1172566EN.docx 147/162 PE632.153v01-00 EN market participant has no obligation to verify the information published by the companies about their economic activities, but are permitted to use this information for the assessment of the environmental sustainability of the investment.

Or. en

Amendment 366 Herbert Dorfmann

Proposal for a regulation Article 4 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2 a. Companies shall be responsible for the certification of their specific economic activities on the basis of the delegated act referred to in paragraph 2.

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Amendment 367 Costas Mavrides

Proposal for a regulation Article 4 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2 a. Companies shall be responsible for the certification of their specific economic activities on the basis of the delegated act referred to in paragraph 2.

Or. en

Amendment 368 Lieve Wierinck, Thierry Cornillet, Ramon Tremosa i Balcells, Caroline Nagtegaal

Proposal for a regulation Article 4 – paragraph 2 a (new)

PE632.153v01-00 148/162 AM\1172566EN.docx EN Text proposed by the Commission Amendment

2 a. The Commission shall immediately notify the Platform on Sustainable Finance of the request addressed by financial market participants.

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Amendment 369 Markus Ferber

Proposal for a regulation Article 4 – paragraph 3

Text proposed by the Commission Amendment

3. The Commission shall adopt deleted delegated acts in accordance with Article 16 to supplement paragraph 2 to specify the information required to comply with that paragraph, taking into account the technical screening criteria set out in accordance with this Regulation. That information shall enable investors to identify: (a) the percentage of holdings pertaining to companies carrying out environmentally sustainable economic activities; (b) the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities.

Or. en

Amendment 370 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – paragraph 3 – introductory part

Text proposed by the Commission Amendment

3. The Commission shall adopt 3. The Commission shall adopt

AM\1172566EN.docx 149/162 PE632.153v01-00 EN delegated acts in accordance with Article delegated acts in accordance with Article 16 to supplement paragraph 2 to specify 16 to supplement paragraph 2 to specify the information required to comply with the information required to comply with that paragraph, taking into account the that paragraph, taking into account the technical screening criteria set out in availability of relevant information and accordance with this Regulation. That technical screening criteria set out in information shall enable investors to accordance with this Regulation. That identify: information shall enable investors to identify:

Or. en

Amendment 371 Elisabetta Gardini, Fulvio Martusciello, Alberto Cirio, Aldo Patriciello

Proposal for a regulation Article 4 – paragraph 3 – introductory part

Text proposed by the Commission Amendment

3. The Commission shall adopt 3. The Commission shall adopt delegated acts in accordance with Article delegated acts in accordance with Article 16 to supplement paragraph 2 to specify 16 to supplement paragraph 2 to specify the information required to comply with the information required to comply with that paragraph, taking into account the that paragraph, taking into account the technical screening criteria set out in technical screening criteria set out in accordance with this Regulation. That accordance with this Regulation. That information shall enable investors to information may enable investors to identify: identify:

Or. en

Amendment 372 Elisabetta Gardini, Fulvio Martusciello, Alberto Cirio, Aldo Patriciello

Proposal for a regulation Article 4 – paragraph 3 – point a

Text proposed by the Commission Amendment

(a) the percentage of holdings (a) the percentage of holdings pertaining to companies carrying out pertaining to companies carrying out environmentally sustainable economic sustainable activities; activities;

Or. en

PE632.153v01-00 150/162 AM\1172566EN.docx EN

Amendment 373 Elena Gentile

Proposal for a regulation Article 4 – paragraph 3 – point a

Text proposed by the Commission Amendment

(a) the percentage of holdings (a) the percentage of holdings pertaining to companies carrying out pertaining to companies carrying out environmentally sustainable economic environmentally and socially sustainable activities; economic activities;

Or. en

Amendment 374 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 4 – paragraph 3 – point a

Text proposed by the Commission Amendment

(a) the percentage of holdings (a) the percentage of holdings pertaining to companies carrying out pertaining to companies carrying out environmentally sustainable economic environmentally and socially sustainable activities; economic activities;

Or. en

Amendment 375 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – paragraph 3 – point a a (new)

Text proposed by the Commission Amendment

(a a) the percentage of holdings pertaining to companies carrying out environmentally harmful economic activities;

Or. en

AM\1172566EN.docx 151/162 PE632.153v01-00 EN

Amendment 376 Barbara Kappel

Proposal for a regulation Article 4 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) the share of the investment deleted funding environmentally sustainable economic activities as a percentage of all economic activities.

Or. en

Amendment 377 Costas Mavrides

Proposal for a regulation Article 4 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) the share of the investment deleted funding environmentally sustainable economic activities as a percentage of all economic activities.

Or. en

Amendment 378 Elisabetta Gardini, Fulvio Martusciello, Alberto Cirio, Aldo Patriciello

Proposal for a regulation Article 4 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) the share of the investment funding (b) the share of the investment funding environmentally sustainable economic sustainable activities as a percentage of all activities as a percentage of all economic economic activities. activities.

Or. en

PE632.153v01-00 152/162 AM\1172566EN.docx EN

Amendment 379 Simona Bonafè, Luigi Morgano

Proposal for a regulation Article 4 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) the share of the investment funding (b) the share of the investment funding environmentally sustainable economic environmentally and socially sustainable activities as a percentage of all economic economic activities as a percentage of all activities. economic activities.

Or. en

Amendment 380 Elena Gentile

Proposal for a regulation Article 4 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) the share of the investment funding (b) the share of the investment funding environmentally sustainable economic environmentally sustainable and socially activities as a percentage of all economic economic activities as a percentage of all activities. economic activities.

Or. en

Amendment 381 Costas Mavrides

Proposal for a regulation Article 4 – paragraph 3 – point b a (new)

Text proposed by the Commission Amendment

(b a) Member States, in close cooperation with the relevant ESA, shall monitor the information referred to in paragraphs 2 and 2a. After disclosing that information, financial market participants shall report it to the relevant national competent authority which shall

AM\1172566EN.docx 153/162 PE632.153v01-00 EN communicate it to the relevant ESA without delay. Whenever the relevant national competent authority or the relevant ESA disagree with the information reported as referred to in paragraphs 2 and 2a, financial market participants shall review and correct the information disclosed.

Or. en

Amendment 382 Gerben-Jan Gerbrandy, Carolina Punset, Sophia in 't Veld

Proposal for a regulation Article 4 – paragraph 3 – point b a (new)

Text proposed by the Commission Amendment

(b a) the share of the investment funding environmentally harmful economic activities as a percentage of all economic activities.

Or. en

Amendment 383 Markus Ferber

Proposal for a regulation Article 4 – paragraph 4

Text proposed by the Commission Amendment

4. The Commission shall adopt the deleted delegated act in accordance with paragraph 3 by 31 December 2019 with a view to ensure its entry into application on 1 July 2020. The Commission may amend that delegated act, in particular in the light of amendments to the delegated acts adopted in accordance with Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2).

Or. en

PE632.153v01-00 154/162 AM\1172566EN.docx EN

Amendment 384 Bas Eickhout

Proposal for a regulation Article 4 a (new)

Text proposed by the Commission Amendment

Article 4 a Third party verifying environmentally sustainable investments A third party referred to in Article 4(2b) shall be authorised by ESMA to assess the compliance of financial products with the criteria provided for in Article 3 and 3a if the following conditions are met: (a) the third party is a legal person established in the established in the Union. (b) the third party only charges non- discriminatory and cost-based fees to financial market participants of which the third party assesses the financial products, without differentiating fees depending on, or correlated to, the results of its assessment. The prices and fees associated with these assessment services shall be publicly disclosed, for each service provided separately, including discounts and rebates and the conditions to benefit from those reductions. The third party shall allow potential clients and clients to access specific services separately; (c) the performance of the third party’s other activities does not compromise the independence or integrity of its assessment; (d) the third party demonstrates sufficient financial health funded by equity in order to continue providing services as a going concern without risk that the independence or integrity of its assessment may be compromised; (e) the third party, or any related entity as referred to in paragraph 9(b) of AM\1172566EN.docx 155/162 PE632.153v01-00 EN International Accounting Standard 24 (‘related party disclosures’) in the Annex to Commission Regulation (EC) No 1126/2008, shall not provide any form of advisory, audit or equivalent service to the financial market participant involvedthe development, marketing, distribution, or sale of the relevant financial product; (f) the third party adheres to a recognised corporate governance code of conduct or to sound corporate governance principles; (g) the members of the management body, as defined in point 36 of Article 4(1) of MiFiDII, of the third party have professional qualifications, education, knowledge and experience that are adequate for the task of the third party, are they are of good repute and integrity; (h) the management body of the third party includes at least one third, but no fewer than two, independent members; (i) the third party takes all necessary steps to ensure that the verification of compliance with the criteria of Article 3 and 3a is not affected by any existing or potential conflicts of interest or business relationship involving the third party; its parent, ultimate parent, or any other related entity; its shareholders or members; managers; employees or any other natural person whose services are placed at the disposal or under the control of the third party. To that end, the third party shall establish, maintain, enforce and document an effective internal control system governing the implementation of policies and procedures to identify and prevent potential conflicts of interest. Potential or existing conflicts of interest which have been identified shall be eliminated or mitigated and disclosed without delay. The third party shall establish, maintain, enforce and document adequate procedures and processes to ensure the independence of the assessment of criteria referred to in Articles 3 and 3a. The third party shall periodically monitor and review those policies and procedures PE632.153v01-00 156/162 AM\1172566EN.docx EN inorder to evaluate their effectiveness and assess whether it is necessary to update them; and (j) the third party can demonstrate that it has adequate methodologies, operational safeguards and internal processes that enable it to assess compliance with the criteria referred to in Articles 3 and 3a. 2. An authorised third party shall comply at all times with the conditions for authorisation set out in paragraph 1. A third party authorised in accordance with paragraph 1 shall notify ESMA without delay of any material changes to the information provided under that paragraph, or any other changes that could reasonably be considered to affect the assessment of the ESMA. 3. ESMA shall charge fees to the third party referred to in paragraph 1, in order to cover necessary expenditure relating to the assessment of applications for authorisation and to the subsequent monitoring of compliance with the conditions for authorisation set out in paragraph 1. 4. The authorisation of a third party according to this Article shall be effective for the entire territory of the Union. 5. ESMA shall withdraw the authorisation where: a. The third party expressly renounces the authorisation; b. The third party obtained the authorisation by making false statements or by any other irregular means, or; c. ESMA considers the third party no longer meets the conditions set out in paragraph 1. 6. ESMA shall develop draft regulatory technical standards specifying the information to be provided in the application for the authorisation of a third party in accordance with paragraph 1. ESMA shall submit those draft regulatory

AM\1172566EN.docx 157/162 PE632.153v01-00 EN technical standards to the Commission by [within 12 months of the date of entry into force of the Regulation]. 7. The Commission shall adopt a regulation on fees. That Regulation shall determine in particular the type of fees and the matters for which fees are due, the amount of fees and the way in which they are to be paid. The amount of a fee charged to a third party shall cover all administrative costs and be proportionate to the turnover of the third party. 8. The Commission is empowered to supplement this Regulation by adopting the regulatory technical standards referred to in this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Or. en

Amendment 385 Sirpa Pietikäinen

Proposal for a regulation Article 4 a (new)

Text proposed by the Commission Amendment

Article 4 a Third party verifying environmentally sustainable investments 1. A third party referred to in sub- paragraph 2(ba) of Article 4 shall be authorised by ESMA to assess the compliance of financial products with the criteria provided for in Article 3. ESMA shall grant the authorisation if the following conditions are met: (a) the third party is a legal person established in the established in the Union. (b) the third party only charges non- discriminatory and cost-based fees to financial market participants of which the third party assesses the financial PE632.153v01-00 158/162 AM\1172566EN.docx EN products, without differentiating fees depending on, or correlated to, the results of its assessment. The prices and fees associated with these assessment services shall be publicly disclosed, for each service provided separately, including discounts and rebates and the conditions to benefit from those reductions. The third party shall allow potential clients and clients to access specific services separately; (c) the performance of the third party’s other activities does not compromise the independence or integrity of its assessment; (d) the third party demonstrates sufficient financial health funded by equity in order to continue providing services as a going concern without risk that the independence or integrity of its assessment may be compromised; (e) the third party, or any related entity as referred to in paragraph 9(b) of International Accounting Standard 24 (‘related party disclosures’) in the Annex to Commission Regulation (EC) No 1126/2008[1], shall not provide any form of advisory, audit or equivalent service to the financial market participant involved the development, marketing, distribution, or sale of the relevant financial product; (f) the third party adheres to a recognised corporate governance code of conduct or to sound corporate governance principles; (g) the members of the management body, as defined in point 36 of Article 4(1) of MiFiDII [2], of the third party have professional qualifications, education, knowledge and experience that are adequate for the task of the third party, are they are of good repute and integrity; (h) the management body of the third party includes at least one third, but no fewer than two, independent members; (i) the third party takes all necessary steps to ensure that the verification of compliance with the criteria of Article 3 AM\1172566EN.docx 159/162 PE632.153v01-00 EN for environmentally sustainable economic activities is not affected by any existing or potential conflicts of interest or business relationship involving the third party; its parent, ultimate parent, or any other related entity; its shareholders or members; managers; employees or any other natural person whose services are placed at the disposal or under the control of the third party. To that end, the third party shall establish, maintain, enforce and document an effective internal control system governing the implementation of policies and procedures to identify and prevent potential conflicts of interest. Potential or existing conflicts of interest which have been identified shall be eliminated or mitigated and disclosed without delay. The third party shall establish, maintain, enforce and document adequate procedures and processes to ensure the independence of the assessment of criteria for environmentally sustainable economic activities compliance. The third party shall periodically monitor and review those policies and procedures in order to evaluate their effectiveness and assess whether it is necessary to update them; and (j) the third party can demonstrate that it has adequate methodologies, operational safeguards and internal processes that enable it to assess compliance with the criteria for environmentally sustainable economic activities. 2. An authorised third party shall comply at all times with the conditions for authorisation set out in paragraph 1. A third party authorised in accordance with paragraph 1 shall notify ESMA without delay of any material changes to the information provided under that paragraph, or any other changes that could reasonably be considered to affect the assessment of the ESMA. 3. ESMA shall charge fees to the third party referred to in paragraph 1, in order to cover necessary expenditure relating to

PE632.153v01-00 160/162 AM\1172566EN.docx EN the assessment of applications for authorisation and to the subsequent monitoring of compliance with the conditions for authorisation set out in paragraph 1. 4. The authorisation of a third party according to this Article shall be effective for the entire territory of the Union. 5. ESMA shall withdraw the authorisation where: (a). The third party expressly renounces the authorisation; (b). The third party obtained the authorisation by making false statements or by any other irregular means, or; (c). ESMA considers the third party no longer meets the conditions set out in paragraph 1. 6. ESMA shall develop draft regulatory technical standards specifying the information to be provided in the application for the authorisation of a third party in accordance with paragraph 1.ESMA shall submit those draft regulatory technical standards to the Commission by [within 12 months of the date of entry into force of the Regulation]. 7. The Commission shall adopt a regulation on fees. That Regulation shall determine in particular the type of fees and the matters for which fees are due, the amount of fees and the way in which they are to be paid. The amount of a fee charged to a third party shall cover all administrative costs and be proportionate to the turnover of the third party. 8. The Commission is empowered to supplement this Regulation by adopting the regulatory technical standards referred to in this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. [1] Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European AM\1172566EN.docx 161/162 PE632.153v01-00 EN Parliament and of the Council (OJ L 320, 29.11.2008, p. 1).[2] Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L173, 12.6.2014, p. 349– 496).

Or. en

PE632.153v01-00 162/162 AM\1172566EN.docx EN