Updates

ELTIF 2.0 Adopted

On 15 February 2023, the European Parliament has voted in favour of an update to the EU’s Regulation for Long-Term Investment Funds (ELTIFs), also known as ELTIF 2.0.

Public consultation on the update of the OECD Guidelines for Multinational Enterprises

In general, the Guidelines, last updated in 2011, are a set of non-binding recommendations to businesses for ensuring responsible business conduct in all areas where business interacts with society.

New rules on severance pay to members of the management of AIFMs

On 8 February 2023, the Danish Government presented a proposal for amendments in the Danish financial regulation, including the Danish Alternative Investment Fund Managers Act.

ESMA consultation on the use of ESG or sustainability-related terms in fund names

On 20 February 2023, ESMA closed their consultation on Guidelines on funds' names using ESG or sustainability-related terms launched back in November 2022.

Amendments to the SFDR RTS have entered into force

On 20 February 2023, the Commission Delegated Regulation (EU) 2023/363 of 31 October 2022 amending and correcting the RTS in the Commission Delegated Regulation (EU) 2022/1288 entered into force.

Opinions issued on the draft European Sustainability Reporting Standards

The European Financial Reporting Advisory Group (EFRAG) submitted a draft set of European Sustainability Reporting Standards (ESRS Set 1) to the EU Commission in November 2022.

New development in Green Deal Industrial Plan

On 9 February 2023, a summit was held in the European Council in which, among other things, a green industrial plan and other measures to secure EU’s competitiveness going forward were discussed.

EU unveils plan for future Net-Zero Industry Act and European Sovereignty Fund

Recently, the EU Commission presented a plan for a Net-Zero Industry Act and a European Sovereignty Fund as part of a bigger Green Deal Industrial Plan. The initiatives shall be seen in connection with the European Green Deal and the goal of making EU climate neutral by 2050.

Requirements for Gender Composition in Managements have Tightened

On 1 January 2023 new rules have imposed stricter requirements for targets and policies on the gender composition of managements. These rules cover both large Danish companies (covered by accounting class C), including state-owned and some listed companies (covered by accounting class D), as well as certain companies within the financial area

Final Report on Minimum Safeguards

The European Commission expert group; Platform on Sustainable Finance, has published a final report on the minimum safeguards laid out in Article 3 and 18 of the Taxonomy Regulation. It replaces the draft report published in July 2022.

Final Adoption of the CSRD

The CSRD has now been finally adopted after the Council of the European Union on 28 November 2022 approved the European Parliament’s position. On 16 December 2022, the directive was published in the Official Journal. The date of entry into force is 20 days from the publication date.

EU Legislation Takes Action Against Greenwashing

Lately, EU has sharpened its focus on preventing greenwashing as well as strengthening the sustainability reporting requirements. One step, among others, is the recent passing of the CSRD. Another is a proposal published in March 2022 by the European Commission with amendments for the Directive 2005/29/EC on Unfair Commercial Practices (UCPD) as well as the Directive 2011/83/EU on Consumer Rights.

Amendments to the Danish Corporation Tax Act and the Danish Tax Assessment Act have entered into force

Following the amendments, enacted on 9 June 2022, the corporate tax rate applicable to financial companies has increased from 22 percent to 25.2 percent as per 1 January 2023 and will increase to 26 percent in 2024.

Thematic Review on Sustainability-Related Information in Remuneration Policies

On 23 November 2022, the Danish Financial Supervisory Authority (“DFSA”) published a thematic review on sustainability-related information in remuneration policies. The DFSA reviewed information given by six selected pension funds and life insurance companies.

Amendments to the SFDR RTS Adopted by the European Commission

On 31 October 2022, the European Commission adopted amendments to the Commission Delegated Regulation (EU) 2022/1288 determining regulatory technical standards (RTS) for the SFDR. The amendments aim to ensure that disclosures in future will ensure full transparency about investments in the sectors covered by the Complementary Delegated Act. 

A General Approach on the CSDD Directive Proposal Adopted by the Council

On 1 December 2022, the Council adopted its general approach on the proposal for a Directive on Corporate Sustainability Due Diligence (CSDDD) which was adopted by the European Commission on 23 February 2022. This completes the negotiations in the Council.

CSRD has been Passed by the European Parliament

The European Parliament has passed the Corporate Sustainability Reporting Directive (“CSRD”). CSRD replaces the Non-Financial Reporting Directive (“NFRD”), and introduces higher requirements of more detailed reporting, and a mandatory EU sustainability reporting standard.

Vækstfonden: Stable Investment Activity on the Danish Venture Market

Prohibition of Products Made with Forced Labour on the EU market

The European Commission has proposed a prohibition on making products made with forced labour available on the EU market as well as exporting such products from EU. The proposal shall be seen in connection with the proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) adopted by the European Commission in February.

Invest Europe ESG Reporting Guidelines: Setting the Industry Standard for ESG Reporting

Invest Europe has published a set of ESG reporting guidelines with the aim of providing user-friendly and advanced guidelines on sustainability reporting within the European private capital sector.