Renewed Sustainable Finance Strategy
The European Green Deal has announced a Renewed Sustainable Finance Strategy, which aims to provide the policy tools to ensure that the financial systems genuinely support the transition of businesses towards sustainability in a context of post-COVID recovery. The renewed strategy will contribute to the objectives of the European Green Deal Investment Plan, in particular to create an enabling framework for private investors and the public sector to facilitate sustainable investments. It will build on previous initiatives and reports, such as the Commission’s 2018 Action Plan on Financing Sustainable Growth and the reports of the Technical Expert Group on Sustainable Finance (TEG).
The importance of a Renewed Sustainable Finance Strategy is highlighted through the ongoing COVID-19 crisis, which underscores some of the subtle links and risks associated with human activity, climate change, and biodiversity loss, as well as the subsequently critical need to strengthen the sustainability and resilience of our societies and economies.
In order to inform the development of the renewed strategy, the Commission launched a consultation, available until 15 July. All citizens, public authorities and private organisations within the EU and beyond are invited to give their views and opinions.
ESAS consult on environmental, social and governance disclosure rules
The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) have last month issued a Consultation Paper seeking input on proposed environmental, social and governance (ESG) disclosure standards for financial market participants, advisers and products.
These standards have been developed under the EU Regulation on sustainability-related disclosures in the financial services sector (SFDR), aiming to:
See more here.
- strengthen protection for end-investors;
- improve the disclosures to investors from a broad range of financial market participants and financial advisers; and
- improve the disclosures to investors regarding financial products.