The European Commission launched a public consultation on Wednesday 8 April on its renewed strategy on sustainable finance (see EUROPE 12388/7), in the framework of the Green Deal, which is expected to be launched in the third quarter of 2020.
The consultation document states that the COVID-19 pandemic highlights the risks associated with human activity and biodiversity loss, stressing more than ever the urgency to act. “Experts suggest that degraded habitats coupled with a warming climate may encourage higher risks of disease transmission”, it says.
For the Executive Vice-President of the European Commission, Valdis Dombrovskis, creating a more sustainable and resilient economy will be “a key focus of the recovery phase” after the crisis and the renewed strategy on sustainable finance will be “essential to mobilising much-needed capital”.
In concrete terms, the new strategy has the following objectives: – to create a sound basis for sustainable investments; – to increase the opportunities for citizens, financial institutions and businesses to have a positive impact on society and the environment; and – to manage and fully integrate climate and environmental risks into the financial system.
Among the issues on which the Commission is surveying stakeholders are the creation of a ‘green label’ for professional investment funds, the creation of a European framework for due diligence in the supply chain and the link between executive pay and carbon reduction performance.
It should be noted that the Commission is also questioning stakeholders on the appropriateness of creating a ‘brown’ taxonomy for activities that cause significant damage to the environment (see EUROPE 12442/14).
The document also includes a section dedicated to sustainable digital finance. It also asks whether EU policy action is needed to maximise the potential of digital tools to better integrate sustainability in the financial sector.
Interested parties have until 15 July to submit their comments to https://bit.ly/2XlZXnI (Original version in French by Marion Fontana)