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The European Commission (EC) has appointed 28 members and 16 observers for the third mandate of the Platform on Sustainable Finance, which will run from February 2026 to the end of 2027. Imran Raja, Accountancy Europe EU Taxonomy Task Force Member and Senior Manager at KPMG has been selected to represent the accountancy profession. Ms Helena Viñes Fiestas has been re-appointed as Chair of the Platform.
The Platform will advise on the EU Taxonomy, revision of existing Taxonomy criteria and the development of criteria for new activities as well as simplification efforts in sustainable finance and monitoring and reporting on capital flows into sustainable investments.
The EC published two draft delegated acts related to Environmental, Social and Governance (ESG) ratings for public feedback by 13 February:
The EC issued a new set of Frequently Asked Questions (FAQs) relating to the EU Taxonomy Omnibus Delegated Act (DA) which amends Climate, Environment and Disclosures DAs.
These FAQs provide guidance on the implementation and legal interpretation of the Taxonomy Article 8 disclosure rules as amended by the EU Taxonomy Omnibus DA. They will help stakeholders to prepare their annual Taxonomy reporting under the simplified rules, due to be published in 2026 for the financial year 2025.
Formal adoption of the FAQs in all EU languages is expected in the first quarter of 2026, following the publication of the Omnibus DA in the EU Official Journal. The DA was published in the EU Official Journal on 8 January 2026.
The EC’s Environmental Omnibus package introduced targeted amendments to several EU environmental legislations to simplify implementation and reduce administrative burden.
The package:
The EU has formally agreed to push back the start date of its regulation on deforestation-free products. Following approval by the European Parliament (EP) and final adoption by the Council in mid-December 2025, the rules will now apply from 30 December 2026, with an extra six-month grace period for micro and small businesses.
The revised text also narrows the scope of the regulation by excluding certain printed goods, such as books and newspapers, citing their low deforestation risk.
In addition, the EC is required to review the administrative impact of the legislation and report on possible simplifications by 30 April 2026.
The European Securities and Markets Authority (ESMA) updated the regulatory timeline on sustainable finance-related legislation from 2026 on. Key dates for this year:
ESMA published a thematic note focusing on ESG strategies to ensure clear and non-misleading sustainability-related claims by market participants. ESMA outlines four principles to follow; sustainability claims should be: 1) accurate 2) accessible 3) substantiated, and 4) up to date. Also, market participants should:
Following these principles supports transparency, informed investment decisions, and trust in sustainable financial markets.
EFRAG released five complementary documents following the delivery of amended European Sustainability Reporting Standards (ESRS) to the EC:
EFRAG published a report assessing the level of awareness and acceptance of the Voluntary Sustainability Reporting Standard for Small and Medium-sized enterprises (VSME). Among the report’s takeaways:
Among the identified challenges:
EFRAG also outlined areas where support is needed:
EFRAG published a discussion paper on the connectivity of financial and sustainability reporting, setting out key concepts, forms and mechanisms for linking reported information. It underlines that:
As next steps, EFRAG suggests clarifying disclosure boundaries and developing guidance on assessing qualitative material information in the financial statements. EFRAG stresses that progress will require coordinated action by preparers, standard setters, auditors and enforcers. It welcomes comments by 30 June 2026.
EFRAG has responded to the Sustainability Accounting Standards Board’s (SASB) amendments consultation. It suggested:
The European Central Bank (ECB) has further embedded climate and nature-related risks across its operations, completing its 2024–2025 plan. Over the past two years, the ECB has enhanced how these risks shape monetary policy, banking supervision, and its own portfolios.
Looking forward, the ECB will focus on three priorities: supporting the green transition, addressing the physical impacts of climate change, and assessing nature-related risks, especially water. These efforts strengthen the resilience of the euro area economy and banking system, helping the ECB fulfil its mandate amid growing environmental and financial challenges.
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