After the European Banking Authority (EBA) last December (see EUROPE 12385/8), it is now the turn of the European Securities and Markets Authority (ESMA) to unveil, on Thursday 6 February, its strategy for sustainable finance. This document details how ESMA intends to integrate environmental, social and governance (ESG) factors into its work.
Its priorities include transparency requirements, risk analysis of green bonds, and convergence of national supervisory practices on ESG factors, with a particular focus on mitigating the risk of greenwashing.
ESMA also intends to use the data at its disposal to analyse the financial risks associated with climate change, including through “potentially climate-related stress testing in different market segments”.
It is also expected to take part in the EU Sustainable Finance Platform chaired by the European Commission, which will develop and maintain the EU Taxonomy on Sustainable Finance (see EUROPE 12393/20).
The Authority is also ready to accept new supervisory mandates, should it be requested to do so, for example with regard to European standards on green bonds.
To help it implement its strategy, ESMA established a coordination network on sustainability in 2019. Composed of experts from national competent authorities and ESMA staff, the network will be supported by a consultative working group of stakeholders to be set up in the coming months, it announced.
See the strategy: https://bit.ly/2tFrqUU (Original version in French by Marion Fontana)