On Monday 3 September, Paul Tang (S&D, Netherlands) presented the committee on economic and monetary affairs of the European Parliament with his draft report on the proposed regulation clarifying how institutional investors must include environmental, social and governance (ESG) factors in their investment decision-making (see EUROPE 11977).
“What the European Parliament wants to aim for is changes in the mindset of investors; it cannot be just about money, it should be broader and with a longer time horizon”, he explained.
In so doing, he revisited the major modifications set out in his draft report (see EUROPE 12085), for instance on the concept of due diligence.
He reiterated that this was already set out in the European Parliament's own-initiative report on sustainable finance, which was adopted by a considerable majority (see EUROPE 12029).
“In fact, the legislation put forward by the Commission was more modest, more aimed at disclosure, whereas the initial aim was to precise the investors' duty”, he explained.
The MEP has also reconsidered his proposal to fully include banks in the scope of application of the regulation and to lay down stricter requirements concerning the remuneration policies of the financial market players.
As regards the adoption of delegated acts by the Commission to clarify the way in which occupational pension institutions assess the environmental, social and governance risks, Tang explained that the matter was being discussed at the European Parliament as well as at the Council.
He considers that the approach is not a productive one and that it would be more effective to include the relevant provisions directly in the directive on the activities of occupational pension institutions.
At this stage, the positions of the various political groups remain hard to pin down, particularly as none of the shadow rapporteurs attended this presentation and their first impressions were read out by others.
Certainly, however, the Greens/EFA are satisfied, as they welcomed the changes made by the rapporteur. As for the ECR group, it seems sceptical about including banks in the scope of application, due to concerns of a single approach that is favourable to a greater taking into account of social responsibility factors.
The political groups have until 12 September to table their amendments to this report, ahead of a committee vote scheduled for 5 November. (Original version in French by Marion Fontana)