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Economic and Social Policies, PUBLICATIONS

Sustainable finance and disclosures: Bringing clarity to investors [EU Legislation in Progress]

Written Stefano Spinaci (1st edition),

Grass growing in the shape of planet Earth, inside a transparent piggy bank, symbolising the need to invest in the protection of the environment and to reconnect with nature.

© pogonici / Fotolia

On 24 May 2018, the Commission published three proposals for regulations reflecting the EU’s efforts to connect finance with its own sustainable development agenda. The proposals include measures to: create an EU sustainable finance taxonomy; make disclosures relating to sustainable investments and sustainability risks clearer; and establish low-carbon benchmarks. In particular, the proposal for a regulation on disclosures aims to integrate environmental, social and governance considerations into the decision-making process of investors and asset managers. It also aims to increase the transparency duties of financial intermediaries towards end-investors, with regard to sustainability risks and sustainable investment targets. This should reduce investors’ search costs for sustainable investments and enable easier comparison between sustainable financial products in the EU. In the Parliament, the ECON committee adopted its report on the proposed regulation in November 2018. On 7 March 2019, the Romanian EU Council Presidency and the Parliament reached a preliminary agreement on the proposal in trilogue discussions, and that agreement now needs to be confirmed by Parliament, with the plenary vote expected in April.

Versions

Proposal for a regulation of the European Parliament and of the Council on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341
Committee responsible: Economic and Monetary Affairs (ECON) COM(2018) 354 of 24.5.2018
Rapporteur: Paul Tang (S&D, the Netherlands) 2018/0179(COD)
Shadow rapporteurs: Sirpa Pietikäinen (EPP, Finland)
Syed Kamall (ECR, United Kingdom)
Lieve Wierinck (ALDE, Belgium)
Matt Carthy (GUE/NGL, Ireland)
Molly Scott Cato (Greens/EFA, United Kingdom)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Confirmation of trilogue agreement in ECON
First-reading vote in plenary
timeline-submitted-to-plenary

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