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Article

7 Mar 2019

Author:
Susanna Rust, Investment & Pensions Europe

EU sets out plan for investor sustainability disclosure rules

The European Parliament and EU member states have reached a political agreement on the so-called disclosure regulation that forms part of the European Commission’s sustainable finance plan, it was announced today.

According to a statement from the EU Council, the EU member states body, the text that was agreed today requires institutional investors to disclose:

  • the procedures they have in place to integrate environmental and social risks into their investment and advisory processes;
  • the extent to which those risks might have an impact on the profitability of the investment; and
  • where they claim to be pursuing an environmentally friendly strategy, information on how this strategy is implemented and the sustainability or climate impact of their products and portfolios.

EU ambassadors must now endorse the political agreement, and after that the European Parliament and Council will be called on to adopt the proposed regulation at the first reading...

The disclosures regulation is the second of the Commission’s sustainable finance legislative proposals for which there is now political agreement. Last month agreement was reached on a low-carbon benchmarks regulation proposal...

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