A large group of civil society organisations have today set out their joint vision of what sustainable finance in Europe should look like, ahead of political transitions in the EU.
Nine NGOs and trade unions across Europe, including ShareAction, WWF, Global Witness, and E3G, have drafted a declaration listing their priorities for the year ahead, calling on policy-makers to create a regulatory framework that mainstreams human rights considerations, and encourages investors to measure the impacts of their activities on communities and the environment.
The groups, which also include the European Coalition for Corporate Justice, Frank Bold, the Nordic Financial Unions, UNI Europa Finance and Sustainable Energy, launch their statement in Brussels today at the European Responsible Investment Network (ERIN) conference. They hope to influence the next stage of the EU's Sustainable Finance agenda ahead of the upcoming change of mandate for the Commission following Parliament elections.
The statement praises the Commission for the ambition of its sustainable finance agenda until now, which has led to unprecedented developments in financial services policy. For example, the Commission proposed a law that would force investors to disclose all financially material environmental, social, and governance (ESG) risks.
Its work on the taxonomy (labelling system) for what constitutes a ‘green’ investment is also welcomed by campaigners and has led to positive developments on factoring in the unintended human rights impacts of those green activities.
However, regulation at EU level must now move on to actively seek ‘to shift capital from brown to green’ and enshrine the non-financial impacts of finance on people’s lives.
Eleni Choidas, EU policy manager at ShareAction, says: “With EU Parliamentary elections coming up in May and a new to-do list for the Commission, there has never been a more important time for coordinated civil society efforts across Europe. The EU has a real opportunity to redesign our economy not just to make our capital markets secure for the long term but to make sure our environment and citizens enjoy the same security now and in retirement.”
Rachel Owens, Head of EU Advocacy, Global Witness said: “For decades investors have turned a blind eye to wide spread land grabbing, human rights abuses and deforestation in the developing world without consequence. Decades of damage prove that voluntary measures for Europe’s financial sector are not enough – European governments must regulate now to make good on their claims that they want to stop climate change and protect human rights.”
Filip Gregor, Head of Responsible Companies Section at Frank Bold says "Our research shows that companies are failing to report meaningful information about their impacts on society and the environment. The availability of insightful comparable data from companies is indispensable for making well-informed investment decisions and it is crucial for public authorities and civil society to enforce corporate accountability and monitor corporate responsibility. The EU Non-Financial Reporting Directive needs to be reviewed and clarified in order to establish sufficient legal requirements for corporate sustainability reporting.
Notes to editors:
After 18 hours of negotiations, the European Parliament, Council of the EU and European Commission reached a political agreement this morning on the Corporate Sustainability Due Diligence Directive (CSDDD). The decision was preceded by a four-year long legislative process at European level and builds on national laws in France and Germany.
In the context of the last phase of the negotiations on the Corporate Sustainability Due Diligence Directive (CSDDD), Frank Bold initiated a multistakeholder statement together with the Responsible Business Alliance (RBA) and Shift.
Today, the European Parliament successfully fended off efforts to reject the European Sustainability Reporting Standards (ESRS), a key legislative piece to ensure the effective application of the Corporate Sustainability Reporting Directive (CSRD) and the transitioning efforts in the context of the Green Deal. A majority of 359 Members of the Parliament voted against a motion to reject the ESRS and its replacement with an emptied and diluted piece of legislation.
