Sustainable Finance

The asset management industry plays a key role in meeting the objectives of the European Green Deal to make the EU’s economy sustainable. Our members integrate ESG considerations across their risk management processes and investment decisions. They develop sustainable investment products and foster transparency to fight greenwashing. This increases choice, trust and, in turn, retail investors’ participation. Overall, such efforts mobilise capital towards a fair and just transition to a climate-neutral economy by 2050.

EFAMA actively contributes to the development and implementation of EU’s sustainable finance initiatives. Among them are a comprehensive transparency framework for financial market participants, standards and labels for green financial products, classification of green economic activities and policies enhancing corporate sustainability reporting.

Related policy positions

Policy Position

International agenda

Sustainable Finance

Sustainability-related Disclosures (SFDR)

12 August 2021

EFAMA responds to IOSCO's recommendations on sustainability-related practices policies, procedures and disclosures in asset management

EFAMA welcomes IOSCO's enhanced attention to transparency efforts supporting informed and qualified investment decisions in sustainability-related products. We support the adoption of such recommendations at the international level and believe IOSCO should leverage the experience with SFDR and Taxonomy in Europe to help establish consistent international standards, definitions and best practices.

In this response, we would like to highlight three pressing challenges deserving greater attention in the report from asset managers' perspective.

Policy Position

Sustainable Finance

06 July 2021

EFAMA: EU´s Renewed Sustainable Finance Strategy must deliver transparent ESG ratings, double materiality in reporting, and a complete Taxonomy

EFAMA reacted to the Renewed Sustainable Finance Strategy published by the European Commission today.

Policy position

Sustainable Finance

EU Taxonomy

Sustainability-related Disclosures (SFDR)

07 June 2021

EFAMA´s comments on draft delegated acts under article 8 of the Taxonomy regulation

EFAMA responds to the opportunity to provide feedback to the Article 8 Taxonomy Regulation (EU) 2020/852 (‘taxonomy’) draft delegated act, which the European Commission published for consultation on 7 May. We highlight that the provisions on investee companies in this delegated act will serve as the primary source of input for asset managers´ own disclosures on taxonomy compliance at both product and entity levels.

Position on the scope of CSRD and the interplay with SFDR

The asset management industry recognises the much-needed adoption of mandatory European sustainability reporting standards under the Corporate Sustainability Reporting Directive (CSRD) proposal. Insufficient availability of meaningful, comparable, reliable, and public Environmental, Social and Governance (ESG) data is a key impediment to realising the full potential of the EU's sustainable finance regulatory framework. Financial market participants' sustainable investments need to be driven by real, verifiable and reported ESG metrics of company's activities and financial risks.

Event

Capital Markets Union

Competitiveness

Sustainable Finance

22 September 2021

EFAMA Vice-president Peter Branner to speak at POLITICO Live event

Tune in on 12 October at 9.00 am CEST to POLITICO Live’s event “Raising the green game in finance: how can Europe deliver?” with the participation of EFAMA's Vice-president Peter Branner from APG Asset Management. He will be joined by

Policy Position

Sustainable Finance

Sustainability-related Disclosures (SFDR)

13 September 2021

IOSCO´s consultation on ESG ratings and data products providers

Given the increasingly important role ESG ratings and data products providers play in investment processes, EFAMA welcomes the increased attention of regulators to this issue. In light of the growing regulatory scrutiny on the ESG characteristics of potential investments, improving the usability and reliability of the ESG ratings and data products is a key priority for the European asset management industry.