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EU Announces Sustainable Finance Action Plan

Posted on: March 15th, 2018

EU Announces Sustainable Finance Action Plan

EU HLEGOn 8 March 2018 the EU published its response to the Sustainable Finance HLEG (High Level Expert Group) report issued in January.

 Go to the new EU Sustainable Finance information here.

The report is accompanied by an action plan and an event which will be live streamed on 22 March.

I am yet to digest the report, however this excerpt from their published information appears to be the most pertinent:

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Commission action plan on sustainable finance

The recommendations of the HLEG form the basis of the action plan on sustainable finance adopted by the Commission in March 2018.

The action plan sets out a comprehensive strategy to further connect finance with sustainability. Its key actions include

  • establishing a clear and detailed EU classification system – or taxonomy – for sustainable activities. This will create a common language for all actors in the financial system
  • establishing EU labels for green financial products. This will help investors to easily identify products that comply with green or low-carbon criteria
  • introducing measures to clarify asset managers’ and institutional investors’ duties regarding sustainability
  • strengthening the transparency of companies on their environmental, social and governance (ESG) policies. The Commission will evaluate the current reporting requirements for issuers to make sure they provide the right information to investors
  • introducing a ‘green supporting factor’ in the EU prudential rules for banks and insurance companies. This means incorporating climate risks into banks’ risk management policies and supporting financial institutions that contribute to fund sustainable projects

The Commission is organising a live streamed high level conference on 22 March 2018 .

 

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