From the outset, EFAMA has supported the Commission’s ambition to encourage and facilitate sustainable investments and be a global leader in sustainable finance policymaking. EFAMA welcomes the work done by the Commission on the different elements of its sustainable finance package: taxonomy, disclosures and positive-carbon/low-carbon impact benchmarks.
A common language and disclosure building on such common language have the potential to help with the transition to a more sustainable economy. A principles-based approach which retains flexibility and fosters market innovation and client-driven developments can give clarity to the market and ensure end investors have sufficient and relevant information to help them choose products.
European asset managers have been integrating ESG in their investment processes in different forms for some time. This is part of their pursuit of helping individuals and institutional asset owners achieve long-term financial returns and is a key element of their operational excellence and competitive advantage. Screened investments, best-in-class sustainable investment, impact investing, stewardship, thematic investing and ESG integration are examples of a wide range of approaches – cumulative or exclusive – used by asset managers today to achieve the diverse sustainability goals of individuals and institutional asset owners.
Going forward, EFAMA will be recommending flexibility in all parts of the package, to ensure EFAMA futureproofs the rulebook and do not unnecessarily locks it selves to its present day strategies and thinking, but leave room for strategies yet to be brought to market. EFAMA also recommends clarifying and streamlining definitions and objectives across the various pieces of legislation to avoid any confusion for market participants and other stakeholders.
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© EFAMA - European Fund and Asset Management Association
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