Brussels, 5th September 2018
EFAMA publishes position papers on sustainable finance package expressing support for European Commission package.
From the outset, EFAMA has supported the Commission’s ambition to encourage and facilitate sustainable investments and be a global leader in sustainable finance policymaking. We welcome the work done by the Commission on the different elements of its sustainable finance package: taxonomy, disclosures and positive-carbon/low-carbon impact benchmarks.
A common language and disclosure building on such common language have the potential to help with the transition to a more sustainable economy. A principles-based approach which retains flexibility and fosters market innovation and client-driven developments can give clarity to the market and ensure end investors have sufficient and relevant information to help them choose products.
European asset managers have been integrating ESG in their investment processes in different forms for some time. This is part of their pursuit of helping individuals and institutional asset owners achieve long-term financial returns and is a key element of their operational excellence and competitive advantage. Screened investments, best-in-class sustainable investment, impact investing, stewardship, thematic investing and ESG integration are examples of a wide range of approaches – cumulative or exclusive – used by asset managers today to achieve the diverse sustainability goals of individuals and institutional asset owners.
Going forward, we will be recommending flexibility in all parts of the package, to ensure we futureproof the rulebook and do not unnecessarily lock ourselves to our present day strategies and thinking, but leave room for strategies yet to be brought to market. We also recommend clarifying and streamlining definitions and objectives across the various pieces of legislation to avoid any confusion for market participants and other stakeholders.
We look forward to working with co-legislators, the Commission’s Technical Expert Group on sustainable finance and all other stakeholders, to ensure these proposals are a success for Europe, its citizens and our planet.
Read EFAMA's position papers (taxonomy, disclosures, positive-carbon/low-carbon impact benchmarks).