2023: a key year for Sustainable Finance in the EU
The EU Taxonomy is a tool that can be used for the transition to low carbon growth
Published on Nov 16, 2023
EU Platform on Sustainable Finance
European Commission advisory body on the…
Words of welcome from the Chair of the Platform, Helena Viñes Fiestas
As 2023 draws to a close, we face great uncertainty and new geopolitical challenges - but we also have reasons to remain hopeful. For the first time in history, a global conversation about the standardisation of sustainability-related disclosures is taking place, and financial institutions and large businesses are disclosing climate-related information.
We know that climate change is accelerating, as we heed warnings about humankind’s breach of irreversible tipping points. They are a stark reminder of the critical nature of our work as we leverage the EU Sustainable Finance framework to accelerate the transition to a more sustainable and inclusive economic growth model.
The EU Platform on Sustainable Finance has been very busy during the first year of its mandate. We have published:
a response to the call for Feedback on the draft ESRS Delegated Act,
a response to the joint ESAs consultation on the review of SFDR Delegated Regulation regarding PAI and financial product disclosures,
a Platform briefing on Sustainable Finance Disclosure Regulation (SFDR) and summary of the Platform’s response to the joint ESAs consultation on SFDR Delegated Regulation,
and finally, a response to the call for feedback on the draft Taxonomy Delegated Acts.
The current EU Platform on Sustainable Finance mandate runs between February 2023 and December 2024
Platform members are working hard on drafting further reports and position papers, all with the aim of improving the usability of the EU Taxonomy and the Sustainable Finance framework, and to ensure the market is equipped to maximise the benefits of the new tools and the disclosure regime.
2024 will be an even busier year; you can expect additional outputs and active discussions about the implementation in practice of CSRD, ESRS, SFDR and EU Taxonomy.
One of the aims of the Platform is to promote active market engagement with the EU Sustainable Finance Agenda, which is why we are launching this newsletter. Our goal is to improve the information flow, publicise and demonstrate the Platform’s work and to keep market participants updated about Platform outputs and activities. We will also have a dedicated email address where we will collate speaking requests for Platform members.
News
To support the Platform’s work, the stakeholder request mechanism was launched on 17 October 2023. It allows stakeholders to submit suggestions for new activities, based on scientific and/or technical evidence, which could be included in the EU taxonomy, or on possible amendments to the technical screening criteria of existing activities.
For those wishing to invite a Platform member or expert to speak at an event, please email your request to FISMA-PLATFORM-SF@ec.europa.eu, including all the key information: the focus of the intervention or expertise you seek, the date and time of the event, the audience of it and all other relevant information. The Platform will respond to all speaking requests with indication of speaker availability.
In December, the Platform’s Data Science Hub will publish a draft report on voluntary Taxonomy-related benchmarks – subscribe to this newsletter to receive updates!
The Platform will also publish an upgraded SFDR briefing in December to respond to the European Commission consultation.
In February 2024, the Sub-Group 1 working on Usability will publish a compendium of market practices, showing how different sector entities are using the EU Taxonomy and the wider the EU Sustainable Finance framework.
The Platform is working to create a simple and voluntary framework for SMEs, which – in line with the commitments in the SME Relief Package - should improve SME access to sustainable and transition finance, and – along with the work of EFRAG – improve data flow to corporate entities that have mandatory reporting responsibilities.
The current EU Sustainable Finance Platform has a diverse membership, with active stakeholder engagement and a close cooperation with EFRAG
Article
The EU Taxonomy: Financing the Transition through Sustainable Investing
This article by the Platform Chair Helena Vines Fiestas shows how companies can use the EU Taxonomy to create a credible and meaningful transition to a greener business model.
Article introduction: The EU Taxonomy is the cornerstone of the European Sustainable Finance Strategy. It is a robust, science-based transparency tool for determining environmentally sustainable economic activities. It plays a crucial role in enabling informed investment decisions and driving additional investments towards a climate-neutral and sustainable economy. But the Taxonomy is, first and foremost, a tool for companies to access the capital they need to finance their transition to net zero and green their activities.
You can access the full PDF article in English via this link.
A visualisation from the article
Resources
For now, please subscribe to the newsletter on LinkedIn – we will offer an option to subscribe also via the official Platform website. You can find the full list of Platform members and the latest Platform publications on the official website.
Events
On Tuesday, 14 November, MEP Paul Tang and QEDhosted an event with the title “The decade of sustainable finance - half-time evaluation”. The event recordings are available on the website: https://www.qed.eu/registration-sustainable-finance/
The event’s aim was to stimulate the discussion about sustainable finance in Europe, and this half-time evaluation brought together politicians, regulators, NGOs, and industry. It saw interventions by the Platform Chair Helena Viñes Fiestas, Verena Ross - Chair, European Securities and Markets Authority, Alexandra Jour-Schröder, Deputy Director General, DG FISMA, European Commission, Nathan Fabian, Chief Sustainable Systems Officer, Principles for Responsible Investment, Maggie O'Neal, Global Head of ESG Research, Barclays, Frank Elderson, Member of the Executive Board, European Central Bank, Valdis Dombrovskis, Executive Vice-President for an Economy that works for People, European Commission, Petra Hielkema (she / her), Chair, European Insurance and Occupational Pensions Authority (EIOPA)Sandrine Dixson-Declève, Co-President, The Club of Rome, Antje Schneeweiss, General secretary of the working group of church investors of the protestant church of Germany, Benoît van den Hove, CEO, EuronextBrussels & member of Management Board, Euronext Group.
COP28 events on Sustainable Finance
European Reporting Sustainability Standards – 4 December, 10:00 – 11:00, Brussels
This event seeks to discuss and present the latest developments in corporate sustainability reporting and its role in supporting the overarching goals of COP28. 2023 has seen significant developments in the realm of corporate sustainability reporting, with the adoption of the European Sustainability Reporting Standards by the European Commission in July and the standards by the International Sustainability Standards Board in June, showcasing tangible commitments to action and new mandatory rules.
Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1837444
Monitoring green financial flows – 4 December, 10:00 – 11:00, Online Only
At the event, subgroup rapporteurs will reveal their method for tracking sustainable investment flows and analyzing progress. The Commission will showcase support for EU Member States in bolstering frameworks for sustainable investments, addressing greenwashing with the Technical Support Instrument. Discussions will focus on using science to create user-friendly indicators for countries and companies.
Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1837450
The need for further transparency and integrity on ESG rating activities – 4 December, 11:30-12:30, Brussels
The EU's push for sustainable finance highlights market challenges and concerns about ESG ratings. To enhance integrity, the Commission proposes additional measures inspired by November 2021 IOSCO recommendations. This session aims to present the Commission’s proposal and to detail further the objectives and how it fits in the broader sustainable finance agenda and work ongoing at international level.
Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1837445
Assessing climate-related financial risks – 4 December, 11:30-12:30, Online Only The EC will detail climate risk work and Fit-For-55 stress tests. Afterwords a panel with EU supervisory bodies and academics will discuss challenges in measuring climate risks and potential solutions.
Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1837451
International Platform on Sustainable Finance (IPSF) Annual Event - 4 December, 13:30-14:30, Online Only
The event unites IPSF member jurisdictions and observers to present IPSF's 2023 efforts, emphasizing global collaboration in sustainable finance. It highlights the group's role in the G20 Sustainable Finance Working Group and discusses transition finance and recent social bond talks. Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1837452
The EU Taxonomy: its uptake and practical uses for the market - 4 December, 15:00-16:00, Brussels
The event showcases EU Taxonomy progress and its adoption by corporates, investors, and financial institutions. It will allow market players to share challenges and opportunities in using it and meeting reporting obligations. Additionally, the EU Platform on Sustainable Finance presents its work on the framework's usability and Taxonomy developments. Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1837447
Mobilising climate-nature finance in the international financing architecture - 4 December, 15:00-16:00, Online Only
At COP28, CISL aims to unite stakeholders for nature-climate financing, stressing collaboration between financial firms and policymakers. This effort seeks to drive sustainable investments, urging policy frameworks' alignment globally to incentivize private finance participation. Link to the event website:https://www.cop28eusideevents.eu/e/programme?session=1837453
Financing the transition to a sustainable economy: current market practices, opportunities and challenges - 4 December, 16:30-17:30, Brussels
The event offers a platform for financial and non-financial entities to share experiences in supporting sustainability transitions. It showcases the EU sustainable finance framework's tools for channelling investments in line with the EU's Recommendation on transition finance. Discussions focus on challenges and opportunities in raising transition finance and facilitating decarbonization of the real economy. Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1837448
InvestEU programme contributing to EU Net-Zero Industry investments - 4 December, 16:30-17:30, Online Only
The side-event will be an opportunity to raise awareness about the InvestEU programme’s financial products that can support the Net-Zero Act objectives. Key message would be on how the InvestEU stimulates investment and crowds in additional public and private capital in this area.
Link to the event website:https://www.cop28eusideevents.eu/e/programme?session=1837454
Link to the full list of side events: https://www.cop28eusideevents.eu/e/programme?date=dec-01
The Sustainable Finance Forum – 6 December
The Sustainable Finance Forum, hosted by Climate Action, PRI, and UNEP FI alongside COP28, is a significant event for the finance sector. With 400 participants, it aims to drive collaboration, set standards, and promote sustainable practices across portfolios. Discussions will cover decarbonization, biodiversity, adaptation, Just Transition, and managing sustainability risks. The ultimate objective is to align finance with the real economy for a net-zero, nature-positive global transition. Notably, Blue Zone accreditation isn't necessary for this free event.
Link to the event website: https://events.climateaction.org/sustainable-finance-forum/
Spanish Pavilion: Call to Action: on carbon markets with DG CLIMA (December 4th at 11.30), Climate risks and the transition of the financial sector (December 4th 2.30 to 4 pm), Net Zero Policy (December 3rd 10 to 11 am), Climate Adaptation (December 2nd, 11.30 to 12.30 pm)
Transition Finance: From Implementation to Impact – 3 December, 11:00 – 12:30, Dubai
Building a green economy demands financial tools and guidelines to allocate resources for sustainability. Senior experts discuss sustainable bonds, carbon markets, scaling credible transition plans, and addressing socio-economic impacts.
Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1844567
Transformative pathways aligning finance with the Paris Agreement goals – 3 December, 16:300 –18:00, Dubai
To achieve eradication, countries need integrated policies. This event aims to share experiences on aligning finance with low emissions and climate resilience, fulfilling Paris Agreement goals.
Link to the event website: https://www.cop28eusideevents.eu/e/programme?session=1837438
World Bank Group pavilion, 1-11 December
Fiscal Policies to Address Climate Change, 1 December, 16:00-16:45
Join this session to learn about green fiscal instruments that can help governments strengthen climate resilience and incentivize transformation toward lower greenhouse-gas emissions. The session will draw on lessons from successful fiscal reforms supporting adaptation and mitigation and discuss the outlines of what future reforms could look like.
Scaling Climate Finance Through Innovative Capital Markets Solutions, 2 December, 14:00-14:45
Sustainability-linked bonds, outcome bonds, catastrophe bonds, and MDB hybrid capital support the financing of climate, environmental and social outcomes. These innovative bonds can link private investor returns to specific project outcomes and transfer risks to capital markets, while MDB hybrid capital allows investors to support significantly increased MDB lending.
Link to the full list of events:https://www.worldbank.org/en/programs/the-world-bank-at-cop28/pavilion-program
EIB & BENELUX programme, 1-12 December
Importance of Regulations to Accelerate Climate Finance, 2 December, 9:30-11:00
Financing to Close the Circularity Gap, 4 December, 10:30-13:00
This side event bridges the Circularity Exchange Network's work and urges national governments to lead global circular finance efforts. It focuses on overcoming silos and fostering collaboration between Environment, Finance, and Economic Affairs departments.
Link to the full list of events: https://events.eib.org/event/4bcf2507-b6e0-4595-bde7-8a8282acff73/websitePage:9d6d23f5-8634-48e3-8c4b-76df9051f068?previewToken=682bc639663ec51b08439243e796b2e9
Bloomberg Philanthropies and Bloomberg LP at COP28 - Link to the full list of events: https://bbgevent.app/cop28-bloomberg/#/
Bloomberg Business Forum at COP28, 3 December, 8:30-14:00
Panel: Driving the Global Sustainable Finance Policy Agenda, 3 December, 11:40 - 12:15
Policymakers and regulators globally are advancing efforts to develop a comprehensive policy framework for sustainable finance to help drive private capital towards more sustainable outcomes. This panel will examine how to deliver cross-border interoperability between initiatives such as taxonomies, transition planning, and disclosures, and what more is needed from the public and private sector to deliver effective outcomes.
Speakers:
Emmanuel Faber (Chair, International Sustainability Standards Board, ISSB)
Nadia Humphreys, Head of Regulatory and Climate Solutions, Bloomberg
Jean-Paul Servais, Chair, IOSCO
Link to the full list of events: https://bbgevent.app/cop28-bloomberg/#/business_forum_cop28
Fund labelling: Connecting market practice with regulatory expectations, 3 December, 17:00-18:00
With global sustainable finance policy looking to formally classify investment products, Bloomberg brings together policy leaders and the Investment community to debate the value of a globally harmonised approach to fund classification.
Link to the event website: https://bbgevent.app/cop28-bloomberg/#/fund_labelling
