Home PrintSearch
Resize Text
European Financial Services Round Table

Thursday, July 19, 2018
EFR paper on European Commission Action Plan on Financing Sustainable Growth

The European Financial Services Round Table (EFR) has published a paper reacting to the European Commission's Action Plan on Financing Sustainable Growth.

The financial sector has a key role to play in delivering a strong and viable economy, which is long-term and sustainable. For that, a robust and stable comprehensive framework that ensures financial stability, a common ground and credibility is needed. This will also need to provide an enabling and incentivising environment to support an early and predictable transition to a low-carbon economy, investment in green technologies and ensure that growth can be financed in a sustainable way.

In the context of our overall support for the Action Plan, the EFR addresses issues aiming at clarifying investor duties, defining a common language in the form of an EU taxonomy, possibly recalibrating capital charges for green assets, implementing the Non-Financial Reporting Directive (NFRD), adapting the EU Multiannual Financial Framework and how to best involve EU citizens in this work.

In the EFR paper, the EFR looks forward to supporting the various legislative and non-legislative initiatives set out in the Commission's Action Plan. In particular, we would now encourage the EU and its Member States to look to drive similar action across the globe, as well as in the next steps for delivering the EU's climate change and SDG pledges. The EFR asks attention for various other key points, which should be addressed such as providing some common guiding principles directly to EU Member States, assessing the ESA's Joint Committee Report on Risks and Vulnerabilities on the EU financial system, taking into account the activities of the group of central banks and supervisors, collaborating with players such as G20, UN, OECD, FSB, and international supervisors and standard setters, providing a stable, adequate, transparent, and reliable policy framework for investments, promoting the establishment of corporate sustainability benchmarks and also improving levels of financial literacy.