On 13 December 2023, the Platform on Sustainable Finance issued a draft report which includes proposals for EU taxonomy-aligning benchmarks. The draft report suggests two proposals for EU taxonomy aligning benchmarks without and with exclusions (EU TAB and EU TABex) with the intention of initiating a discussion on the pivotal role the taxonomy could assume in shaping climate and environmental benchmarks. The EU taxonomy aligning benchmarks are inspired by the success of the EU Paris aligned benchmarks (EU PABs) which grew to €116bn in assets under management in less than three years.
EU taxonomy-aligning benchmarks are defined as benchmarks where the underlying assets are selected, weighted or excluded in such a manner that (i) the resulting benchmark portfolio is on a scaling environmentally sustainable capital expenditure trajectory, (ii) while the non-environmentally sustainable capital expenditure proportion is on a decarbonisation trajectory and is also constructed in accordance with the minimum standards laid down in the delegated acts of EU PABs. EU TABs with exclusions also include specific activity exclusion thresholds for fossil fuel related activities.
The deadline for comments on the draft report is 13 March 2024.