Sustainable finance: Commission publishes guidelines to improve how firms report climate-related information and welcomes three new important reports on climate finance by leading experts

Dombrovskis 19

Participation of Valdis Dombrovskis, Vice-President of the EC, and Pierre Moscovici, Member of the EC, at the Brussels Economic Forum 2019. European Union, 2019 Source: EC – Audiovisual Service

This article is brought to you in association with the European Commission.


The European Commission has today published new guidelines on corporate climate-related information reporting, as part of its Sustainable Finance Action Plan. These guidelines will provide companies with practical recommendations on how to better report the impact that their activities are having on the climate as well as the impact of climate change on their business.

The Commission has also today welcomed the publication of three new important reports by the Technical Expert Group on sustainable finance, including key recommendations on the types of economic activities that can make a real contribution to climate change mitigation or adaptation (taxonomy).

Valdis Dombrovskis, Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union, said: “The climate emergency leaves us with no choice but transit to a climate-neutral economy model. Today’s new guidelines will help companies to disclose the impact of  the climate change on their business as well as the impact of their activities on climate and therefore enable investors make more informed investment decisions. I also welcome the three reports by the Technical Expert Group, which are an important contribution to European policy-making and global debate on green finance.”

Today’s guidelines are part of the Commission’s ongoing efforts to ensure that the financial sector – private capital – can play a critical role in transitioning to a climate-neutral economy and in funding investments at the scale required. They will provide guidance to around 6,000 EU-listed companies, banks and insurance companies that have to disclose non-financial information under the Non-Financial Reporting Directive. They are inspired by recent proposals by the Technical Expert Group on sustainable finance (TEG), and integrate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) established by the G20’s Financial Stability Board.

Also today, the Commission welcomes three important expert reports published by the TEG on sustainable finance:

  •          The first is a classification system – or taxonomy – for environmentally-sustainable economic activities. This aims to provide practical guidance for policy makers, industry and investors on how best to support and invest in economic activities that contribute to achieving a climate neutral economy. The group has extensively screened activities across a wide range of sectors, including energy, transport, agriculture, manufacturing, ICT and real-estate. It has identified low-carbon activities like zero-emissions transport but also transition activities like manufacturing of iron and steel in order to compile the most comprehensive classification system for sustainable activities to date. This expert report is published as the Commission’s proposal on taxonomy awaits agreement by the co-legislators.
  •          The second expert report on an EU Green Bond Standard recommends clear and comparable criteria for issuing green bonds. In particular, by linking it to taxonomy, it will determine which climate and environmentally-friendly activities should be eligible for funding via an EU green bond. The Commission expects this to boost the green bond market allowing investors to scale up sustainable and green investment
  •          Finally, a third expert report onEU climate benchmarks and benchmarks’ ESG disclosures sets out the methodology and minimum technical requirements for indices that will enable investors toorient the choice of investors who wish to adopt a climate-conscious investment strategy, and address the risk of greenwashing. The report also sets out disclosure requirements by benchmark providers in relation to environmental, social and governance (ESG) factors and their alignment with the Paris agreement. This expert report relates to the Commission’s proposal on low-carbon benchmarks, which has recently been agreed by the co-legislators.

Background

The TEG commenced its work in July 2018 and was composed of 35 members from civil society, academia, business and the finance sector. These reports are the outcomes of one year of extensive work on key aspects of the Commission’s Action Plan. These reports therefore supplement the legislative proposals on taxonomy and benchmarks presented by the Commission in May 2018. They aim to further incentivise and channel private sector investment into sustainable development, by making investors more aware of what they invest in and by giving investors important tools to invest sustainably.

On June 24, the Commission will host a stakeholder dialogue on climate-related reporting and the TEG reports. The event will be livestreamed on a dedicated event page. The TEG will conduct a call for feedback on the EU Taxonomy report and on the interim Climate benchmarks report.

The EU budget is also a driver of climate mainstreaming. To implement the Paris Agreement and the commitment to the United Nations Sustainable Development Goals, the Commission proposes to raise the level of ambition for climate mainstreaming across all EU programmes, with a target of at least 25% of EU expenditure contributing to climate objectives between 2021-2017.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

China is now heavily endorsing its big investment flow in the Central Eastern European (CEE) countries

MEPs and EU ministers agree on closing information gaps to enhance security

Germany: A grand coalition may trouble employers and bankers

#UNGA NEWS ROUNDUP: Funding plea for UNRWA, Burkina Faso and CAR updates, Guterres praises climate change ‘pioneer’ Chirac

Gains by Abyei interim force can help advance resolution of border issues between Sudan and South Sudan, UN peacekeeping chief says

Grave concern over escalating humanitarian crisis, casualties, displacement across northwest Syria: UN

Mass measles vaccination campaign begins in Ebola-hit DR Congo province

OECD employment rate increases to 68.2% in the first quarter of 2018

We need to rethink the way we heat ourselves. Here’s why

G20 World Exclusive Interview: “The world, especially emerging economies and developing countries, require a more sustainable and quality development”, the Spokesperson of Japan underscores live from Antalya Turkey

EU@UNGA 74: Working towards a more peaceful, secure and prosperous world

Weak growth of G20 international merchandise trade in third quarter of 2018

Fairer and clearer rules on social benefits for EU mobile workers agreed

THE COMMITTEES: ‘All roads lead to the Fifth’

Murder of Brazilian indigenous leader a ‘worrying symptom’ of land invasion

EU Budget 2019: MEPs increase funding on youth, migration and research

Healing of ozone layer gives hope for climate action: UN report

Central Asia: the European Union matches political commitment with further concrete support

Chile ups foreign bribery enforcement but flawed case resolutions are insufficient to ensure transparency and accountability

In the United States, there aren’t enough hours in the week to make rent

Fresh airstrikes kill dozens in conflict-ravaged Syria

The increasing drug prices in Europe

Mario Draghi didn’t do it but Kim Jong-un did

MEPs back plans to promote water reuse for agricultural irrigation

Eurozone: Despite anemic growth and shaky banks marks record trade surplus

What makes a good healthcare professional?

Zuckerberg, a paella, and the mighty EU questionnaires that would stop Whatsapp acquisition by Facebook?

These rules could save humanity from the threat of rogue AI

The glimmers of hope in the latest dire climate report

Commission considers anti-dumping duty on Chinese solar glass imports

Boris ‘single-handed’ threatens mainland Europe; can he afford a no-deal Brexit?

Main results of European Council of 18/10/2018

COP24 negotiations: Why reaching agreement on climate action is so complex

EU Commission indifferent on Court of Auditors’ recommendations

UN chief commends African Union on adoption of institutional reforms

Activist Greta Thunberg gets preview of UNHQ ahead of climate summit

EU budget: Boosting cooperation between tax and customs authorities for a safer and more prosperous EU

Chatterbox Rome Declaration cannot save the EU; Germany has to pay more to do that

Circular Plastics Alliance: 100+ signatories commit to use 10 million tons of recycled plastic in new products by 2025

“Two Pack” approved: Is democracy chased away from Brussels?

These are the places with the most climate change deniers

Mexico: Helping refugees go into business, a ‘win-win situation’, says UNHCR’s Grandi

Climate change and health – can medical students be the solution?

How the world can gear up for the fight against cancer

UN, global health agencies sound alarm on drug-resistant infections; new recommendations to reduce ‘staggering number’ of future deaths

Can cybersecurity offer value for money?

Marking international day, UN experts call for urgent action to end racial discrimination, in wake of New Zealand anti-Muslim attack

COP24: A million lives could be saved by 2050 through climate action, UN health agency reveals

The future of sustainability: recycling carbon through the power of the sun

Marginalized groups hit hardest by inequality and stigma in cities

North Korea missile tests ‘deeply troubling’: senior UN official

GSMA announces first speakers for Mobile 360 Series-Middle East and North Africa

Praising Roma’s contributions in Europe, UN expert urges end to rising intolerance and hate speech

Africa is creating one of the world’s largest single markets. What does this mean for entrepreneurs?

Conflict, climate change among factors that increase ‘desperation that enables human trafficking to flourish’, says UN chief

‘Collective endeavour’ needed to strengthen peacekeeping further, says top UN official

Devastating storms like Hurricane Florence ‘unusual this far north’: UN weather agency

Germany may have a stable and more cooperative government

European Semester 2019 Spring Package: Commission issues recommendations for Member States to advance sustainable and inclusive economic growth

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s