Proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341

Author (Corporate)
Series Details COM (2018) 354
Publication Date 24/05/2018
Content Type

Summary:

Legislative initiative published by the European Commission in May 2018, aiming to set up disclosure obligations on how financial companies integrate environmental, social and governance (ESG) factors in their investment decisions.

Further information:

The Commission's proposal requires disclosure of the procedures financial actors have in place to integrate ESG risks into their investment and advisory processes, as well as the extent to which ESG risks are expected to have an impact on the returns of the product or service provided, irrespective of whether or not sustainable investment objectives are pursued. In addition, if asset managers or institutional investors claim that they pursue a strategy with sustainability investment objectives, they would have to provide information on how they adhere to those sustainability objectives in their investment decisions.

The proposed Regulation is part of package of measures on sustainable development, following up on an Action Plan released in March 2018 which aims to boost the role of finance in achieving a well-performing economy that also delivers on environmental and social goals. It was adopted by the European Commission on 24 May 2018. The European Parliament adopted its negotiating position on 14 November, followed by the Council of the European Union in December 2018. An informal agreement between the co-legislators on a draft text was reached on 7 March 2019. The Parliament formally endorsed it on 18 April, followed by the Council on 8 November.

Source Link https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:354:FIN
Related Link(s)
Commentary and Analysis
EFAMA: EFAMA’s comments on the European Commission’s Proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341 https://www.efama.org/Publications/18-4040_EFAMA%20position%20paper%20on%20disclosures%20proposal_FINAL.pdf
EPRS: Briefing, March 2019: Sustainable finance and disclosures: Bringing clarity to investors https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2019)635572
SOMO, 27/09/2019: Investor's disclose of sustainability risks https://www.somo.nl/new-eu-law-obliges-investors-to-disclose-sustainability-risks/
Farrer & Co.: Insights, 16/10/2019: Sustainable Finance: an overview of the European Commission's proposals https://www.farrer.co.uk/news-and-insights/sustainable-finance-an-overview-of-the-european-commissions-proposals/

News
Reuters, 24/05/2018: Financial firms face new EU disclosure requirements on green investment https://uk.reuters.com/article/idUKKCN1IP1FM
IPE, 07/03/2019: EU sets out plan for investor sustainability disclosure rules https://www.ipe.com/news/esg/eu-sets-out-plan-for-investor-sustainability-disclosure-rules/www.ipe.com/news/esg/eu-sets-out-plan-for-investor-sustainability-disclosure-rules/10029957.fullarticle

Official
EUR-Lex: SWD(2018)264: Impact assessment https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:264:FIN
EUR-Lex: SWD(2018)265: Executive summary of the impact assessment https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:265:FIN
European Parliament: Legislatve Observatory: Disclosures relating to sustainable investments and sustainability risks https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2018/0179(OLP)
EP: Legislative Train: Disclosure relating to sustainable investments and sustainability risks https://www.europarl.europa.eu/legislative-train/theme-economic-and-monetary-affairs-econ/file-sustainable-finance-disclosures-relating-to-investments-and-risks
European Commission: Press Release, 24/05/2018: Sustainable finance: Making the financial sector a powerful actor in fighting climate change http://europa.eu/rapid/press-release_IP-18-3729_en.htm
European Commission: Fact Sheet, 24/05/2018: Frequently asked questions: Commission proposals on financing sustainable growth http://europa.eu/rapid/press-release_MEMO-18-3730_en.htm
Council of the European Union: Press Release, 07/03/2019: Sustainable finance: Presidency and Parliament reach political agreement on transparency rules https://www.consilium.europa.eu/en/press/press-releases/2019/03/07/sustainable-finance-presidency-and-parliament-reach-political-agreement-on-transparency-rules/
Council of the European Union: Press Release, 08/11/2019: Capital Markets Union: Council adopts legislative reforms https://www.consilium.europa.eu/en/press/press-releases/2019/11/08/capital-markets-union-council-adopts-legislative-reforms/

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Record URL https://www.europeansources.info/record/?p=512186