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<EU SUSTAINABLE FINANCE TAXONOMY – EPF GETS REAL ESTATE INCLUDED
September 25, 2019

EPF participated in one aspect of the work of a European Commission Technical Expert Group on Sustainable Finance: the real estate aspects of the design of a taxonomy (a list) of economic activities that are environmentally sustainable for investment purposes. It will be gradually integrated into EU legislation in order to support the flow of capital into sustainable sectors in need of financing. An example of the practical interest for real estate: building on the development of the taxonomy, the Commission will assess whether it should adapt EU capital requirements to better reflect the [lower] risk of sustainable assets held by banks and insurance companies.

The Swedish Property Federation noted that only "Construction" was included in the draft Taxonomy, not "Real estate activities" leading to EPF's request for inclusion of "Real estate activities" as defined in NACE section L (p. 80):

68 Real estate activities

68.1 Buying and selling of own real estate

68.10 Buying and selling of own real estate

68.2 Renting and operating of own or leased real estate

68.20 Renting and operating of own or leased real estate

68.3 Real estate activities on a fee or contract basis

68.31 Real estate agencies

68.32 Management of real estate on a fee or contract basis

As a result, the final report contains (pp. 381-385), a new section 26.5 "Acquisition of buildings", duly coded "NACE code L68 "Real estate activities"".