Sustainability and Financial Markets

On 28 March 2019 the Dutch Central Bank (DNB) and the Radboud  University Nijmegen organized a congres on “Sustainability and Financial Markets”.

Among the speakers was a representative of the European Commission. He elaborated on the commission’s action plan on sustainable finance. This action plan was adopted in March 2018 and sets out a comprehensive strategy to further connect finance with sustainability. Its key actions include:

  • establishing a clear and detailed EU classification system – or taxonomy – for sustainable activities. This will create a common language for all actors in the financial system
  • establishing EU labels for green financial products. This will help investors to easily identify products that comply with green or low-carbon criteria
  • introducing measures to clarify asset managers’ and institutional investors’ duties regarding sustainability
  • strengthening the transparency of companies on their environmental, social and governance (ESG) policies. The Commission will evaluate the current reporting requirements for issuers to make sure they provide the right information to investors
  • introducing a ‘green supporting factor’ in the EU prudential rules for banks and insurance companies. This means incorporating climate risks into banks’ risk management policies and supporting financial institutions that contribute to fund sustainable projects