Featured Resource: EU Action Plan on Sustainable Finance – Factsheet


The EU has just released its action plan on financing sustainable growth. Based on the recent report of the High Level Expert Group (HLEG), it brings sustainability considerations into the regulation and functioning of European financial markets. By promoting finance for sustainable growth, it should over time be a major contributor to the implementation of the Paris Agreement and wider development agendas financed in and out of the EU.

The action plan has three major objectives: reorienting capital flows towards a more sustainable economy, mainstreaming sustainability in risk management, and fostering transparency and long-termism.  The key actions are:

  1. Establishing an EU sustainability taxonomy
  2. Creating standards and labels for green financial products
  3. Fostering investment in sustainable infrastructure projects
  4. Incorporating sustainability in providing financial advice
  5. Developing sustainability benchmarks
  6. Integrating sustainability in ratings and market research
  7. Clarifying institutional investors’ and asset managers’ duties
  8. Incorporating sustainability in prudential requirements
  9. Strengthening sustainability disclosure and improving accounting rule-making
  10. Fostering more sustainable corporate governance and attenuating short-termism in capital markets

There is a useful factsheet or download the full text.

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