Building Blocks For A More Sustainable Financial System

On 31 January 2018, the High-Level Expert Group (HLEG) on Sustainable Finance, set up by the European Commission in December 2016, delivered its final report and recommendations.

First and foremost: finance

It's worth stressing that this report is not simply about a tiny share of the market that offers sustainable products and services—it's about the financial sector, as a whole, transitioning to a more resource-efficient and more circular economy.

This report is required reading for any financial player serious about its future!

The key recommendations of the report are:

Establish and maintain a common sustainability taxonomy at the EU level. Clarify investor duties to better embrace long-term horizon and sustainability preferences. Upgrade disclosure rules to make sustainability risks fully transparent, starting with climate change. Keep in mind the key elements of a retail strategy on sustainable finance, including investment advice, ecolabel standards, and SRI minimum standards. Develop and implement official European sustainability standards and labels, starting with green bonds. Establish a "Sustainable Infrastructure Europe" scheme. Use governance and leadership to enable sustainability goals. Include sustainability in the supervisory mandate of the ESAs and extend the horizon of risk monitoring. Luxembourg's commitment to implementing the recommendations

In Luxembourg, Finance Minister Pierre Gramegna described the report as "an important milestone [that] outlines the road towards a more sustainable financial system," adding that "Luxembourg is committed to working with all the important stakeholders on the implementation of the various...