Featured Product

    EC Publishes Action Plan on Sustainable Finance

    March 08, 2018

    EC published the action plan on sustainable finance, which is part of the Capital Markets Union's efforts to connect finance with specific needs of the European economy. The roadmap that is based on the recommendations of the High-Level Expert Group (HLEG) on sustainable finance. Along with this action plan, EC published the frequently asked questions and a factsheet on the action plan. EC is also organizing a high-level conference on March 22, 2018 to discuss this action plan.

    The EC-adopted action plan on sustainable finance has three main objectives: reorient capital flows toward sustainable investment, to achieve sustainable and inclusive growth; manage financial risks stemming from climate change; environmental degradation, and social issues; and foster transparency and "long-termism" in financial and economic activity. EC has proposed an EU strategy on sustainable finance that outlines a roadmap, including the following actions, covering all relevant actors in the financial system:

    • Establishing a common language for sustainable finance—that is, a unified EU classification system, or taxonomy, to define what is sustainable and identify areas where sustainable investment can make the biggest impact.
    • Creating EU labels for green financial products on the basis of the EU classification system; this will allow investors to easily identify investments that comply with green or low-carbon criteria.
    • Clarifying the duty of asset managers and institutional investors to take sustainability into account in the investment process and enhance disclosure requirements.
    • Requiring insurance and investment firms to advise clients on the basis of their preferences on sustainability.
    • Incorporating sustainability in prudential requirements for banks and insurers. Also, exploring the feasibility of re-calibrating capital requirements for banks (the so-called green supporting factor) for sustainable investments, when it is justified from a risk perspective, while ensuring that financial stability is safeguarded.
    • Enhancing transparency in corporate reporting via a proposal to revise the guidelines on non-financial information to further align the guidelines with the recommendations of the FSB Task Force on Climate-Related Financial Disclosures, or TCFD.

     

    Related Links 

    Keywords: Europe, EU, Banking, Securities, Insurance, Sustainable Finance, Action Plan, EC

    Related Articles
    News

    FSB Report Finds Steady Increase in Climate-Related Disclosures

    FSB published the annual report that examines to-date progress toward implementation of climate-related disclosure recommendations of the industry-led Task Force on Climate-related Financial Disclosures (TCFD).

    October 29, 2020 WebPage Regulatory News
    News

    APRA Consults on Reporting Standard for Credit Risk Management

    APRA is consulting on the reporting standard for credit risk management (ARS 220.0).

    October 28, 2020 WebPage Regulatory News
    News

    PRA Consults on Proposals to Support Transposition of BRRD2

    PRA launched a consultation (CP18/20) setting out proposals for the "Contractual Recognition of Bail-in" and "Stay in Resolution" Rules.

    October 28, 2020 WebPage Regulatory News
    News

    FASB Consults on XBRL US DQC Rules Taxonomy and Technical Guides

    FASB is consulting on the XBRL US Data Quality Committee (DQC) Rules Taxonomy (DQCRT) along with two technical guides.

    October 27, 2020 WebPage Regulatory News
    News

    EC Proposes to Amend Liquidity Coverage Rules for Covered Bond Issuers

    EC published draft of a delegated regulation amending liquidity coverage rules for covered bond issuers.

    October 27, 2020 WebPage Regulatory News
    News

    ESMA Confirms Endorsement of UK Credit Ratings Post Brexit Transition

    ESMA published an update to its March 2019 statement on the endorsement of credit ratings from UK.

    October 27, 2020 WebPage Regulatory News
    News

    PRA Updates Q&A on Branch Return Form

    PRA published Version 2 of the questions and answers (Q&A) on the Branch Return form.

    October 26, 2020 WebPage Regulatory News
    News

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    ISDA Launches IBOR Fallbacks Supplement and Protocol

    ISDA launched the IBOR Fallbacks Supplement and the IBOR Fallbacks Protocol, with both becoming effective on January 25, 2021.

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6022