Sustainable finance

Article

Sustainable finance

13 March 2018

Regulatory news alert

Commission’s action plan for sustainable finance

On 8 March 2018, the European Commission published its action plan for a greener and cleaner economy. It sets out a roadmap for further work combining legislative and non-legislative actions for the financial sector to support the transition to the low-carbon economy.

The proposed action plan from the European Commission includes a series of upcoming key actions covering the financial system such as:

  • The establishment of an EU sustainability taxonomy, harmonizing the language for sustainable finance across the European Union. 
  • The creation of standards and labels for green financial products
  • The clarification of institutional investors and asset managers’ duties to make sure that they appropriately consider environmental, social, and governance issues in their investment decision process.
  • The incorporation of sustainability in prudential requirements
  • Strengthening sustainability disclosure and improving accounting rule-making.

The action plan also includes a timetable for all actions that will be introduced by Q2 2019, such as:

  • In Q2 2018, the Commission will amend Markets in Financial Instruments Directive (MIFID II) and the Insurance Distribution Directive (IDD) delegated acts to enhance sustainability in suitability assessment.
  • In Q2 2019, the Commission will publish its fitness check of EU legislations on public corporate reporting and amend its non-binding guidelines on non-financial reporting. The Commission will also adopt a delegated act on the content of the prospectus for green bond issuances and publish a comprehensive study on sustainability ratings and research.
  • The Commission will create EU Ecolabels for financial products and explore possible measures to incorporate climate and environmental risks into prudential requirements in line with the EU taxonomy.
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Contacts

Simon Ramos
Partner – Advisory & Consulting IM Leader
Tel : +352 45145 2702
siramos@deloitte.lu

Xavier Zaegel
Partner – Advisory & Consulting
Tel : +352 45145 2748
xzaegel@deloitte.lu

Nicolas Hennebert
Partner – Audit
Tel : +352 45145 4911
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Tom Pfeiffer
Partner – Sustainability Leader
Tel : +352 45145 4246
topfeiffer@deloitte.lu

Benoit Sauvage
Senior Manager – Strategy, Regulatory & Corporate Finance
Tel : +352 45145 4220
bsauvage@deloitte.lu

 
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