ASEAN Taxonomy Threads the Needle Between Pure Threshold-Based and Principles-Based Taxonomies

ASEAN Taxonomy version released outlining how it would connect and provide a common language for different ASEAN member country taxonomiesThe ASEAN Taxonomy provides substantially greater flexibility than other taxonomies like the one adopted for the European Union, but how national taxonomies use it remains to be seenASEAN Taxonomy outlines the critical role for finance, but it's unclear how the taxonomy would apply to companies operating across multiple countries to limit opportunities for regulatory arbitrage

The ASEAN Taxonomy Board has released the first proposed version of a regional taxonomy for its Southeast Asian member countries. The sustainable finance taxonomy straddles the line between a strict-threshold taxonomy and one that is principles-based, allowing the two t...