Buyside Welcomes European Green Finance Legislation

Shanny Basar

The European Commission published its first legislative proposals on sustainable finance yesterday.

The Commission said in a statement: “Following up on the first ever EU Action Plan on Sustainable Finance, the proposals will allow the financial sector to throw its full weight behind the fight against climate change.”

Jyrki Katainen, Vice-President responsible for jobs, growth, investment and competitiveness at the Commission, said in a statement: “To achieve the EU’s 2030 climate targets, we need around €180bn a year of additional investments in energy efficiency and renewable energy. Mobilising private capital to fund sustainable investment is essential. The European Fund for Strategic Investments (EFSI) is already crowding in private investments to achieve these goals.”

Saker Nusseibeh, chief executive of Hermes Investment Management, said:

He added: “As fiduciaries we have responsibilities which go beyond those defined in any contract – these are to our clients & their ultimate beneficiaries & also to the financial community & broader society in which we operate. This lies at the heart of what we do.”

The Association for Financial Markets in Europe said:

Simon Lewis, chief executive of AFME, said the trade body supports the progressive development of a sustainability taxonomy; the promotion of green standards and labels and better voluntary disclosures. The association recommended further measures such encouraging development of a green securitisation market.

“AFME reiterates the importance of further work in the EU prior to any recalibration of prudential measures to ensure that capital frameworks can still achieve financial stability aims,” added Lewis. “A green supporting factor provides a clear incentive for institutions to transition to a green economy, but it should be recognised that capital requirements are there to mitigate risk, and green investments could also contain risks that may then not be fully represented in capital requirements.”

 Eurosif, the pan-European socially responsible investing membership organisation, said:

Flavia Micilotta, Eurosif executive director and HLEG member, said: “The work on a unified taxonomy for advancing sustainability, further specifications to investors’ duties disclosure, a proposal for new sustainability-related benchmarks are key areas which will allow investors to make great strides to align their investments with a sustainable financial future.”

The Institutional Investors Group on Climate Change, representing 154 European asset managers, said:






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