Shearman & Sterling LLP | FinReg | European Commission Launches Consultation on Sustainable Finance Strategy
Financial Regulatory Developments Focus
This links to the home page
Blog
FILTERS
  • European Commission Launches Consultation on Sustainable Finance Strategy
    04/08/2020
    The European Commission has launched a consultation on its renewed sustainable finance strategy. The consultation was proposed at the beginning of 2020 as part of the Commission’s next steps for sustainable finance. It poses a series of questions to all EU citizens, public authorities and private organizations, as well as experts with particular knowledge of finance and sustainability, on the aspects of the EU’s renewed strategy. Responses to the consultation should be submitted by July 15, 2020.
     
    The renewed sustainable finance strategy will focus on the following three key areas:
     
    1. Creating an enabling framework to strengthen the foundations for sustainable investment;
    2. Maximizing the positive impact of the frameworks and tools being utilized to further the development of green finance; and
    3. Managing and integrating climate and environmental risks into financial institutions’ operations and the financial system as a whole.
     
    The EU seeks feedback from all stakeholders to inform the development of the strategy, including in particular on:
     
    • How the financial sector and the economy can be more sustainable;
    • How the foundations for sustainable finance can be strengthened (including through enhanced disclosure of non-financial information by corporates and financial institutions, amending accounting rules to avoid dis-incentivising sustainable and long-term investments, and improvements to capital markets infrastructure and investor engagement);
    • How more opportunities can be created for citizens, financial institutions and corporates to enhance sustainability (which may include measures such as encouraging “green securitization” and harnessing the potential of digitalization for green finance); and
    • How climate and environmental risks (including risks to financial stability) can be reduced (with particular input sought from financial market participants on the regulatory regimes applicable to insurers, banks, asset managers and pension providers).
     
    View the European Commission's Consultation on its Renewed Sustainable Finance Strategy.
     
    View details of the European Commission's next steps for sustainable finance.

    Return to main website.