62 Amendments of Simona BONAFÈ related to 2018/2007(INI)
Amendment 1 #
Motion for a resolution
Citation 1 a (new)
Citation 1 a (new)
- having regard to the Sustainable Development Goals set by the United Nations, in particular the commitment to take action to combat climate change and its impact and to ensure sustainable consumption and production,
Amendment 2 #
Motion for a resolution
Citation 3 a (new)
Citation 3 a (new)
- having regard to the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the Mid-Term Review of the Capital Markets Union Action Plan of the 8 June 2017,
Amendment 4 #
Motion for a resolution
Citation 4
Citation 4
— having regard to page 14 of the HLEG finterimal report, which states that Europe’s investors have a combined exposure to carbon-intensive sectors of roughly 45 % and that less than 1 % of global institutional investors are green infrastructure assets of January 2018 entitled ‘Financing a Sustainable European Economy’, which outlines the tension between short-term profit seeking behaviour and the need for long-term investment in order to meet the Environmental, Social and Governance (ESG) targets, and in particular to their recommendation of assessing the risks on the financial system and policy framework of short-termism and “the tragedy of the horizon” on page 45,
Amendment 7 #
Motion for a resolution
Citation 9 a (new)
Citation 9 a (new)
- having regard to the OECD "Recommendation of the Council on Common Approaches for officially supported export credits and environmental and social Due Diligence" (the "Common Approaches") that recognises "the responsibility of Adherents to implement the commitments undertaken by the Parties to the United Nations Framework Convention on Climate Change" and "the responsibility of Adherents to consider the positive and negative environmental and social impacts of projects, in particular in sensitive sectors or located in or near sensitive areas, and the environmental and social risks associated with existing operations, in their decisions to offer official support for export credits",
Amendment 8 #
Motion for a resolution
Citation 10 a (new)
Citation 10 a (new)
- having regard to the EBRD´s Green Economy Transition approach (GET), that intends to mitigate and/or build resilience to the effects of climate change and other forms of environmental degradation. With particular reference to EBRD documents linking transition impact and environment, including, where appropriate, changes in the project´s assessment methodology,
Amendment 10 #
Motion for a resolution
Citation 11 a (new)
Citation 11 a (new)
- having regard to the French Corporate Duty Of Vigilance Law of 27 March 2017, especially Article 1 and Article 2 thereof,
Amendment 11 #
Motion for a resolution
Citation 15 a (new)
Citation 15 a (new)
- having regards to Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardized securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012;
Amendment 15 #
Motion for a resolution
Citation 21 a (new)
Citation 21 a (new)
- having regard to the Opinion of the European Committee of the Regions "Climate finance: an essential tool for the implementation of the Paris Agreement" highlighting the role of local and regional governments in enhancing the investment pipeline for achieving the objectives of the Paris Agreement,
Amendment 16 #
Motion for a resolution
Citation 25
Citation 25
— having regard to the recommendation in the HLEG finterimal report of Julanuary 20178 that the Commission should conduct a sustainability test on all financial legislative proposals,
Amendment 17 #
Motion for a resolution
Citation 28 a (new)
Citation 28 a (new)
28 a - having regard to the UNISDR and CRED report "The Human Cost of Weather related Disasters" stating that 90% of recorded major disasters from 1995 to 2015 caused by natural hazards were linked to climate and weather and that globally, disasters cause between 250 and 300 billion USD in economic damages every year;
Amendment 18 #
Motion for a resolution
Citation 28 b (new)
Citation 28 b (new)
- having regard to the Sendai Framework for Disaster Risk reduction and "Priority 3: Investing in disaster risk reduction for resilience" including Article 30 stating the need "to promote, as appropriate, the integration of disaster risk reduction considerations and measures in financial and fiscal instruments",
Amendment 19 #
Motion for a resolution
Citation 30
Citation 30
— having regard to the work by the European Systemic Risk Board (ESRB) on the risks of stranded assets and the need for European ´carbon stress tests´,
Amendment 25 #
Motion for a resolution
Citation 32 a (new)
Citation 32 a (new)
- having regard to the report of the High-Level Task force on Investing in Social Infrastructure in Europe, which estimates the minimum gap in social infrastructure investment in the EU, at 100-150 billion Euro per year and a total gap of over 1,5 trillion Euro in 2018-2030,
Amendment 48 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
A a. whereas sustainable finance can be a mean to address societal challenges towards a long-term inclusive growth and to promote the citizens’ wellbeing;
Amendment 51 #
B a. whereas the European Union can set a standard for a sustainable financial system by introducing a credible and comprehensive framework, the details of which should be established progressively by specific legislative initiatives;
Amendment 52 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
B a. whereas a predictable and stable regulatory system for climate change related investments is of outmost importance to foster private sector involvement in climate finance;
Amendment 54 #
Motion for a resolution
Recital B b (new)
Recital B b (new)
B b. whereas a mind-set shift of all stakeholders is needed, which requires cross-cutting legislation from the Commission
Amendment 59 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Stresses the potential of a faster greensustainable transition as an opportunity for orienting capital markets and banks towards long- term, innovative and efficient investments; notes the current trend of divestment from coal, but stresses the urgent need for divestment from other fossil fuel industries; underlines the importance of European banks and capital markets gaining the advantages of innovation in this area; notes that environmental, social and governance (ESG) benefits and risks are not reflected in prices and that this provides a market advantage to unsustainable and short- termist geared finance; stresses that a political, supervisory and regulatory framework to govern sustainable finance is overdue; notes that such a framework would help to mobilise capital at scale for sustainable development and enhance market efficiency to channel capital flows towards assets that contribute to sustainable development;
Amendment 74 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Underlines that a meaningful offer of sustainable financial products may also have positive effects over the enhancement of the European social infrastructure understood as the set of initiatives and projects aiming at creating public value by boosting investment and innovation in the sectors which are strategic and crucial to the wellbeing and the resilience of people and communities, such as education, healthcare and housing;
Amendment 79 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Stresses that the financial sector as a whole and its core function of allocating capital to benefit society should be governed by the values of equity and sustainability; emphasises in that respect the instrumental role of economic, fiscal and monetary policy in fostering sustainable finance by facilitating capital allocation to decarbonised and resource- efficient economic activities which are able to reduce the current need for future resources and thereby capable of meeting EU sustainability goals; insists that a substantial price for greenhouse gas emissions is a key component of a functioning and efficient environmental and social market economy, and that the current price set in the European Trading System is far too low to fulfil this role and should be raised accordingly; underlines that the introduction of a carbon tax in the European Union would be necessary to accompany this shift in investment;
Amendment 81 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Stresses that the financial sector as a whole and its core function of allocating capital to benefit society should be governed by the values of equity and sustainability and should systematically include ESG issues in investment analysis and investment decisions; emphasises in that respect the instrumental role of economic, fiscal and monetary policy in fostering sustainable finance by facilitating capital allocation to decarbonised and, resource- efficient and sustainable economic activities which are able to reduce the current need for future resources and thereby capable of meeting EU sustainability goals; insists that a substantial price for greenhouse gas emissionintegrating external costs is a key component of a functioning and efficient environmental and social market economy, for instance through a substantial price for greenhouse gas emissions;
Amendment 92 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2 a. Welcomes the work by the HLEG which offers valuable building blocks to work towards a new standard for a sustainable financial sector; insists however the need to actively involve the banking sector, which due to its dominance in the European financial landscape still holds the key to making finance more sustainable;
Amendment 96 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Emphasises the massive systemic risks that stranded carbon assets represent to financial stability; stresses the need for the identification and mandatory reporting and progressive dismissal of these assets as essential to the orderly transition to climate-positive investments; calls for the introduction of European ‘carbon stress tests’ as proposed by the European Systemic Risk Board (ESRB) in 2016 for banks and other financial intermediaries to determine the risks related to such stranded assets; welcomes the ESRB proposals for climate resilient prudential policies, such as specific capital surcharges based on the carbon intensity of individual exposures or large exposure limits applied to the overall investment in assets deemed highly vulnerable to an abrupt transition to the low-carbon economy.
Amendment 108 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. CInsists that reforming the financial system so that it actively accelerates the ecological transition will require actions and commitments from economic actors from both the public and the private sector; calls on the Member States, in coordination with the Commission and the EIB, to evaluate their national and collective public investment needs and to commit to fill the potential gaps to ensure that the EU is on track to meet its climate change goals within the next five years; insists that this will also necessitate specific financial tools, to that end, thus calls on the Member States to develop green sovereign bonds;
Amendment 110 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Calls on the Member States, in coordination with the Commission and the EIB, to evaluate their national and collective public investment needs to ensure that the EU is on track to meet its climate change goals within the next five years. Suggests to coordinate this process at European level and establish a system to track actual financial flows towards sustainable investments, enhancing experiences such as the EU Observatory on Sustainable Finance;
Amendment 112 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Calls on the Member States, in coordination with the Commission and the EIB, to evaluate their national and collective public investment needs to ensure that the EU is on track to meet its climate change goals within the next five years; underlines the role that national promotional banks and institutions can play in facing this challenge;
Amendment 114 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Calls on the Member States, in coordination with the Commission and the EIB, to evaluate their national and collective public investment needs to ensure that the EU is on track to meet its climate change and sustainability goals within the next five years;
Amendment 119 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credi, credible and globally recognizable green taxonomy, including a ‘Green Finance Mark’, through a legislative initiative. Moreover, a common European taxonomy should be flanked by guidelines for investors and a specific "Green finance" labelling system based on appropriate performance indicators, providing a simple and concise assessment of the quality of the assets; in a second phase, definitions and technical implementation measures or guidelines may expand into the area of reporting, review and certification process;
Amendment 121 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credible greensustainability taxonomy, including a ‘Green Finance Mark’, through a legislative initiative ready as from 2019 the latest, and going in parallel with at least the following additional legislative proposals: an overarching, mandatory due diligence framework including a duty of care, a public European Credit Rating Agency, an ESG taxonomy and a proposal to integrate ESG risks and factors into the prudential framework of financial institutions;
Amendment 133 #
Motion for a resolution
Paragraph 6 – introductory part
Paragraph 6 – introductory part
6. Recommends that this taxonomy include clear definitions, possibly building on existing initiatives (such as, for example, the EIB´s Climate Awareness Bonds or other recognized and relevant market initiatives), and could include three levels:
Amendment 139 #
Motion for a resolution
Paragraph 6 – point 1
Paragraph 6 – point 1
1. a minimum standard aligned with the Paris Agreement, Sendai Framework and the do-no-harm principle in accordance with ESG risk analysis;
Amendment 144 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6 b. Insists that the ESG risks and factors can be a helpful starting point to differentiate among asset classes, which is needed to manage risks and incentivise sustainable investments.
Amendment 145 #
Motion for a resolution
Paragraph 6 c (new)
Paragraph 6 c (new)
6 c. Underlines the importance of bringing the voice of beneficiaries into the financial system, which can be done inter alia by civil action and civil lawsuits;
Amendment 146 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Welcomes the recent inclusion of sustainability issues in the PRIIPs and STS Regulations, as well as in Shareholders Rights Directive and the NFRD; applauds the inclusion in the IORPs Directive of recognition of stranded assets; asks for the transversal integration of sustainable finance criteria in all legislation related to the financial sector; calls for common guidelines in order to harmonise the definition of ESG factors and their introduction in the existing and future legislation; calls in this regard the Commission to use the power defined in Regulation(EU) No 1286/2014 to deliver, as a matter of urgency and in any case before developing the sustainability taxonomy, a delegated act to specify the details of the procedures used to establish whether a packaged retail and insurance based investment product targets specific environmental or social objectives;
Amendment 147 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Welcomes the recent inclusion of sustainability issues in the PRIIPs and STS Regulations, as well as in Shareholders Rights Directive and the NFRD; applauds the inclusion in the IORPs Directive of recognition of stranded assets; asks for the transversal integration of sustainable finance criteria in all legislation related to the financial sector. Calls in particular for a direct reference to ESG criteria in the "product oversight governance" (POG) of PRIIPs, IBIPs, investment products in the field of MIFID II and insurance products in IDD Directive, in order to consider those criteria in the entire process of creation, placement and monitoring of investment and insurance products;
Amendment 150 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Welcomes the recent inclusion of sustainability issues in the PRIIPs and STS Regulations, as well as in Shareholders Rights Directive and the NFRD; applauds the inclusion in the IORPs Directive of recognition of stranded assets as well as the extension of the prudent person principle and a reference to the UN principles for responsible investment; asks for the transversal integration of sustainable finance criteria in all legislation related to the financial sector via an omnibus proposal;
Amendment 160 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
Amendment 161 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Welcomes the European Commission Statement at the "One Planet Summit" in Paris (December 2017) on the possible introduction of a "Green Supporting Factor" in prudential rules in order to boost lending and investments in low carbon assets;
Amendment 168 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainabilityle investments´ economic solidity in terms of risks, within the framework of capital adequacy rules; stresses that capital adequacy rules must be based on and fully reflect demonstrated riskdemonstrated risks and need to consider positive externalities; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose;
Amendment 174 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Highlights that all widely used financial benchmarks do not consider ESG factors in their methodology; calls for ESMA to develop one or more European sustainability benchmarks, using the European sustainability taxonomy, to measure the performance of European issuers on the basis of ESG risks and factors;
Amendment 175 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Calls to analyze and encourage private initiatives, such as the EeMAP project on "Green Mortgages", in order to assess and demonstrate at what conditions green assets may entail a reduction of risk for investments while at the same time enhancing environmental sustainability;
Amendment 183 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Emphasises that disclosure is a critical enabling condition for sustainable finance; applauds the work of the Taskforce on Climate-related Financial Disclosure (TCFD) and calls on the Commission and the Council to explicitly endorse its recommendations; urges the Commission to include mandatory disclosure, including on disaster and climate risk, in the framework of the revision of the Accounting Directive and the NFRD. In particular stresses that an enlargement of the field of application of the Non Financial Reporting Directive (NFRD - 2014/95) should be considered, with a view to extending the disclosure duty to companies with more than 250 employees;
Amendment 195 #
Motion for a resolution
Paragraph 9 c (new)
Paragraph 9 c (new)
9 c. Highlights that corporate governance should promote long-term sustainable value creation for instance through loyalty shares for long-term shareholders and including ESG in remuneration packages for directors and the board; notes that the clarification of directors’ duties in this respect would support sustainable investors in their engagement with boards.
Amendment 201 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Insists that fiduciary duty should be extended to encompass a mandatory ‘two- way’ integration process whereby asset managers are obliged to consider ESG factors and clients are asked about their timeframe and sustainability preferencell actors across the investment chain including asset managers and independent investment consultants or other investment intermediaries are obliged to integrate financially material ESG risks in their decisions , as well as consider the non-financially material ESG preferences of clients and beneficiaries, or the ultimate end-investors;
Amendment 203 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Insists that fiduciary duty should be extended to encompass a mandatory ‘two- way’ integration process whereby asset managers are obliged to consider ESG factors and the sustainability impact of their portfolios and clients are asked about their timeframe and sustainability preferences;
Amendment 204 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Underlines that a direct reference to the knowledge and capability to implement ESG criteria should be considered among the professional requirements for Board Members and Top Management (in particular for Chief Financial Officer and Chief Risk Manager) of financial and insurance intermediaries;
Amendment 206 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Calls on the European Supervisory Authorities (ESAs) to develop guidelines for model contracts between asset owners and asset managers, independent investment consultants and other investment intermediaries which would clearly incorporate the transmission of the beneficiary interest as well as clear expectations as regards the identification and integration of ESG risks on behalf of the asset manager independent investment consultant or other investment intermediary;
Amendment 208 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Calls on the European Supervisory Authorities (ESAs) to develop guidelines for model contracts between asset owners and asset managers, which would clearly incorporate the transmission of the beneficiary interest as well as clear expectations as regards the identification and integration of ESG risks on behalf of the asset manager with a view to avoid, reduce, mitigate and compensate those risks;
Amendment 210 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11 a. Urges the European Commission to introduce an overarching, mandatory framework on due diligence, which in line with the 2017 OECD Guidelines for Responsible Business Conduct for Institutional Investors requires investors to identify, prevent, mitigate and account for ESG factors and risks; underlines that the continuous and ongoing conduct of due diligence (which means both pre- investment and throughout the investment) is needed and can be seen as a duty of care of investors; recalls that the French Duty of Vigilance law may serve a possible template for a pan-European duty of Vigilance Law for companies and investors;
Amendment 214 #
Motion for a resolution
Paragraph 11 b (new)
Paragraph 11 b (new)
11 b. Stresses the need for clear requirements on how investors are expected to perform due diligence of investee companies; Calls on the Commission to ensure that these due diligence requirements are supported by public and mandatory disclosure through, at a minimum, the annual reports of investors, as well where applicable the introduction of effective and robust accountability mechanisms by the ESAs;
Amendment 219 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 a. Notes the need to extend legal duties to all actors along the investment chain who are bound contractually or through a trust-based relationship, including asset managers, investment consultants and proxy advisers since all influence the channelling of the end- investor’s capital and should demonstrate a high standard of care towards their immediate client (the asset owner) and, by extension, the end-investor;
Amendment 220 #
Motion for a resolution
Paragraph 12 b (new)
Paragraph 12 b (new)
12 b. Recommends that investors ensure that they have a broad understanding of their clients’ non-financial preferences; stresses that asset managers should ensure that information about non- financial risks should be communicated clearly to all beneficiaries of financial products;
Amendment 230 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Notes the urgent need for a uniform standard for green bonds; insists that such green bonds should include periodic reporting on the environmental impacts of the underlying assets; underlines that green bonds should also respect negative criteria and must not include any form of fossil fuel asset, nuclear power or investment in aviation infrastructure; underlines the importance of the public sector as risk taker, innovator and market creator; calls on a legislative initiative to incentivise, promote and market a European public issuance of green bonds by existing and future European institutions such as the EIB and the European Monetary Fund;
Amendment 240 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Notes the urgent need for a uniform standard for green bonds, that should build on an EU official, granular green taxonomy to determine what is green; insists that such green bonds should include periodic reporting on the environmental impacts of the underlying assets; underlines that green bonds should also respect negative criteria and must not include any form of fossil fuel asset, nuclear power or investment in aviation infrastructure;
Amendment 243 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Stresses the importance of the Social component of Sustainable finance; notes the potential of the development of new financial instruments especially dedicated to social infrastructures, such as social bonds, as endorsed by the Social Bond Principles (SBP) 2017;
Amendment 252 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15 a. Emphasises the importance of sustainability research provided by sustainability indexes and ESG rating agencies in providing all financial actors with the necessary information for their reporting and fiduciary duty, implementing the shift towards a more sustainable finance;
Amendment 273 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Intends to further clarify the mandate of the ESAs so that it includes ESG risks; calls on ESMA to update its ‘suitability’ guidelines to include ESG issues and on the three ESAs to introduce a monitoring system to assess material ESG risks beginning in 2018 and with a forward-looking climate scenario analysis; favours the extension of the ESAs’ mandate to include checking portfolio alignment with the Paris Agreement and to ensure consistency with the TCFD recommendations; the ESAs should have the necessary financial resources to carry out these missions;
Amendment 287 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. NStresses the example setting role EU institutions should play when it comes to making finance sustainable; notes that the EIB has a mixed record on climate action; insists that the EIB should only agree to future lending that is compatible with a 1.5 °C climate limit;
Amendment 291 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18 a. Takes note of the recommendation made by the HLEG group for an EU observatory for Sustainable Finance which should be created to track, report and disclose information on EU sustainable investments and should be set up by the European Environment Agency in cooperation with the ESAs; recommends, in the light of strengthening the example setting function of the European Union, that this observatory also gets a role in tracking, supporting and disclosing information on sustainable investments of EU funds and EU institutions including EFSI, the EIB, the ECB; asks the observatory to report its activities to the European Parliament;
Amendment 303 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. CIs concerned about the findings by the London School Of Economics “that 62.1% of ECB corporate bond purchases take place in the sectors [...] which are responsible for 58.5% of eurozone greenhouse gas emissions”1a; calls on the ECB to redesign its purchase programmes in order to rebalance and align its portfolio with an investment policy that is consistent with the Paris Agreement and ESG goals; underlines that such redesign may act as a pilot for establishing a future sustainability taxonomy; calls on the ECB to mainstream climate considerations into its day-to-day operations; _________________ 1aSini Matikainen, Emanuele Campiglio and Dimitri Zenghelis, ‘The climate impact of quantitative easing’, Grantham Institute on climate change and the environment, May 2017
Amendment 306 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Calls on the ECB to redesign its purchase programmes in order to rebalance and align its portfolio with an investment policy that is consistent with the Paris Agreement and ESG goals; underlines that such redesign may act as a pilot for establishing a future sustainability taxonomy; asks that the ECB endeavours to take into account ESG factors in conducting its monetary policy and defining interest rates;
Amendment 312 #
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
19 a. Calls on the Commission to publish a regular progress report on the issues covered in this report;