Sustainability is the key word in the programme of the Finnish Presidency
On 26 June, Finland published its Council presidency programme for the next six months ‘Sustainable Europe – Sustainable Future’.
Sustainability is placed at the core of all EU action. Also, the intention is to raise the EU profile as a global leader in climate action. Read more
Commission launches guidelines on climate-related disclosures
On 18 June, the European Commission launched guidelines to help companies improve their climate-related reporting. These supplement guidelines integrate the TCFD recommendations and provide information on how to report the impact of business activities on the environment and vice-versa – the impact of climate change on the business. Also, the guidelines take into account the upcoming taxonomy. Read more
EU leaders fail to agree on the date for climate neutrality
On 20 June, EU leaders did not agree on the date for achieving a climate neutrality in EU. MSs dependent on coal (Poland, Hungary, Czech Republic and Estonia) were not convinced they would receive sufficient assistance in this transition, the main concern being the costs of the transition to climate neutral economy and the potential impact of their competitiveness. Read more
ESMA seeks evidence on potential short-term pressure on corporations by the financial sector
On 24 June, the European Securities and Markets Authority published a consultation seeking to gather evidence on potential short-term pressure on corporations coming from the financial sector as part of the Action Plan on Sustainable Finance. The aim is to identify areas in which existing rules might contribute to mitigating undue short-term pressure but also the areas where the rules add to it. ESMA seeks input on six areas: investment strategy and horizon; ESG disclosures and their contribution to the long-term strategies; the role of fair value in better investment decision-making; institutional investors’ engagement; renumeration of fund managers and corporate executives; use of credit default swaps. Read more
EIOPA seeks feedback on its opinion on integrating sustainability in Solvency II
On 3 June, the European Insurance and Occupational Pensions Authority launched a consultation on a draft opinion on sustainability within Solvency II. This is part of EIOPA’s strategic priorities in Sustainable Finance and also a follow up to the Commission’s call for opinion (which was part of the Action Plan). The opinion addresses the valuation of assets and liabilities, assesses current investment and underwriting practices and seeks to contribute to the integration of sustainability risks in market risks and natural catastrophe underwriting risks for the solvency capital requirements for standard formula and internal model users.
European Court of Auditors conducts a rapid case review on sustainability reporting
On 12 June, the European Court of Auditors launched a rapid case review which looks into the SDGs reporting practices by the individual EU institutions and agencies. The review reveals that the European Investment Bank and the European Union Intellectual Property Office publish sustainability reports. Sustainability reporting is currently not integrated into the Commission’s performance framework. Read more