In Addition to Attractive Financial Returns, Investors Seek Environmental and Social Benefits
On 10 March 2021, the Sustainable Finance Disclosure Regulation of the European Commission entered into force. This was the start for a relay race with several stages that will last several years and directly affect financing entities and indirectly affect project developers (see Figure 1 for the envisaged timeline). Developers will be forced by finance institutions to deliver assets that comply with the norm. If regulatory requirements are not met, the project will be less valuable or of no value at all. This article refers to the envisaged regulatory timeline and targeted objectives, which financiers must disclose, fulfil and monitor on an annual basis.By Rosa M. Tarragó, Strategy and Infrastructure Equity Specialist, Germany
