Regulations are obviously taking up more and more space in our industry. Since sustainability risks and impact assessment for sustainable development are things that we work with continuously, we welcome regulations that make it easier to structure this important work even more clearly. For example, the European Union has adopted regulatory frameworks as part of its efforts to achieve the climate change targets of the 2015 Paris Agreement and the UN Sustainable Development Goals:
The EU Taxonomy Regulation is a tool for classifying what economic activities are environmentally sustainable. The purpose of this classification is to help investors to identify and compare environmentally sustainable investments. Part of the taxonomy went into effect in January 2022 and we thus report the proportion of our assets in 2021 that were covered or not covered by the Taxonomy.
In March 2021 the Sustainable Finance Disclosure Regulation (SFDR) went into effect. The purpose of this EU regulation is to create a standard for how sustainability risks in financial products should be presented. Implementation of the regulation is still under way, and we are continuously evaluating − among other things − the main negative consequences for sustainability factors that our investment decisions may entail.