EC Consults on Renewed Sustainable Finance Strategy
EC is consulting on the Renewed Sustainable Finance Strategy, which is an integral part of the European Green Deal and of the overall efforts to ensure a sustainable and resilient economic recovery, following the COVID-19 outbreak. The consultation is intended to collect views and opinions to feed into the work to help mobilize private investment in sustainable projects. EC aims to adopt the Renewed Sustainable Finance Strategy in the second half of 2020. The consultation will be open until July 15, 2020.
This renewed strategy will build on previous initiatives and reports, such as the 2018 EC Action Plan on Financing Sustainable Growth and the reports of the Technical Expert Group on Sustainable Finance. The renewed sustainable finance strategy will provide a roadmap, with new actions to increase private investment in sustainable projects and activities to support the actions set out in the European Green Deal. The initiative will also provide additional enabling frameworks for the European Green Deal Investment Plan. Within the broader context of the European Green Deal Investment Plan, the Renewed Strategy will focus on three areas:
- Strengthening the foundations for sustainable investment by creating an enabling framework, with appropriate tools and structures. Many financial and non-financial companies still focus excessively on short-term financial performance, instead of the long-term development and sustainability-related challenges and opportunities.
- Increased opportunities to have a positive impact on sustainability for citizens, financial institutions, and corporates. The aim is to maximize the impact of the frameworks and tools to “finance green.”
- Climate and environmental risks will need to be fully managed and integrated into financial institutions and the financial system as a whole, while ensuring social risks are duly taken into account, where relevant. Reducing the exposure to climate and environmental risks will further contribute to greening the finance.
Related Links
Comment Due Date: July 15, 2020
Keywords: Europe, EU, Banking, Insurance, Securities, Sustainable Finance, Climate Change Risk, ESG, European Green Deal, Social Risk, EC
Previous Article
EBA Examines Impact of Capital and Liquidity Reforms on Banks in EURelated Articles
EC Regulation Sets Out Standards for Reporting and Disclosure of MREL
EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).
EBA Report Notes Loan Origination Should Remain in Supervisory Focus
EBA published a report that examines the convergence of prudential supervisory practices in 2020 and offers conclusions of the EBA college monitoring activity.
APRA Decides to Standardize Submission Date for Quarterly Reporting
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
ECB Working Group Publishes Recommendations on EURIBOR Fallbacks
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
Bundesbank Publishes Supporting Documentation for Reporting by Banks
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
EBA Publishes Phase 1 of Reporting Framework 3.1
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
IOSCO Sees Support for Mandatory Sustainability Reporting
The Sustainable Finance Taskforce of IOSCO held two roundtables, with global stakeholders, on the IOSCO priorities to enhance the reliability, comparability, and consistency of sustainability-related disclosures and to collect views on the practical implementation of a global system architecture for these disclosures.
APRA to Finalize Capital Adequacy Standard Revisions by January 2022
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA Issues Guidelines on Outsourcing to Cloud Service Providers
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA Publishes Data on Deposit Guarantee Schemes
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.
