European Commission Consultation on the Renewed Sustainable Finance Strategy - July 2020
The SFC would like to thank the European Commission for the opportunity to provide input to its envisaged Renewed Sustainable Finance Strategy.
In this letter, we complement the technical feedback provided in our responses to the consultation questionnaire by highlighting key principles that in our view should underpin the future strategy. Our recommendations are aimed at enhancing the Commission’s measures for the development of a robust and well-functioning sustainable finance market, allowing to meet the EU’s climate neutrality objective.
The financial sector is key to support the transition to a sustainable and low carbon economy by mobilizing private and institutional capital towards changes in the real economy. Institutional and private investors want to contribute to tackling global challenges, participate in the investment opportunities arising from anticipation of key transition trends as well as to protect themselves against transition risks. Having recognized these dynamics, the SFC members have pro-actively driven innovation in sustainability product development and risk management solutions since the early 1990s.
We firmly support and advocate for a strong and ambitious response to climate change as demonstrated by our commitment to transparency through TCFD aligned disclosures and working with peers to embed sustainability into our business through the Principles for Responsible Banking and Principles for Responsible Investment. We are committed to supporting governments as they set the pathways for transitions in their respective economies and societies. Going forward, we are committed to working collaboratively with peers and our investee companies through initiatives such as Climate Action 100+ to support transitions across the economy.