The European Commission laid out a roadmap to deliver on the commitment of Financing Sustainable Growth.The roadmap wants to ensure that the regulatory framework helps the financial sector adjust to the risks of climate change and environmental challenges, and fosters private capital flows towards sustainable investments. With this Action Plan, the Commission is determined to lead global work in this area and help sustainability-conscious investors choose suitable projects and companies.
The Action Plan has three objectives:
Reorient capital flows towards sustainable investments to achieve sustainable and inclusive growth;
Manage financial risks stemming from climate change, natural disasters, environmental degradation and social issues; and
Foster transparency and a long-term outlook for financial and economic activity.
Full press release by the European Commission on “Why is there a need for an EU-wide strategy on sustainable finance?”