10 Amendments of Othmar KARAS related to 2018/2007(INI)
Amendment 60 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Stresses the potential of a faster green transition as an opportunity for orienting capital markets towards long- term, innovative and efficient investments; notes that environmental, social and governance (ESG) benefits and risks aremay not be adequately reflected in prices and that this could provides a market advantageincentives to unsustainable and short-termist geared finance geared finance for certain market participants; notes that maturity transformation performed by banks is a crucial part of financial intermediation that contributes to efficient resource allocation and credit creation; stresses that a political and regulatory framework to govern sustainable finance is overdue;
Amendment 87 #
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 respecte importance of a financial sector that supports a sustainable and inclusive economic system, in line with the EU’s objectives; emphasises with respect to the financial sector resource allocation function, 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;
Amendment 98 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Emphasises the massive systemic risks that stranded carbon assets could represent to financial stability; stresses the need for the identification and mandatory reporting of these, assessment and prudent management of exposures which relate to such assets as essential to the orderly transition to climate-positive investments; calls for the introduction of ‘carbon stress tests’ for banks and other financial intermediaries to determine the risks related to such stranded assets;on the EBA to investigate the introduction of environmental-related risks as a new risk category with a view to assess inter alia the possible material sources and effects of environmental specific risks on banks and other financial intermediaries taking existing sustainability reporting by institutions into account.
Amendment 154 #
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 thea transversal integration of sustainable finance criteria in allother legislation related to the financial sector in cases where this is deemed to be appropriate subsequent to case-by-case assessments;
Amendment 173 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Calls on the EBA to investigate on the basis of available data and in coordination with the High Level Working Group on Sustainable Finance of the Commission whether a dedicated prudential treatment of green assets, in the form of different capital charges in comparison to non-green assets, would be justified from a prudential perspective. In particular, EBA shall investigate about (a) the risk profile of green assets in comparison to non-green assets, (b) the definition of a green asset class and (c) the potential effects of a dedicated prudential treatment of green assets on bank lending and the financial stability in the Union.
Amendment 186 #
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 in the framework of the revision of the Accounting Directive and the NFRDstresses in this respect that the reporting framework should be proportionate with regards to the risks incurred by the institution, its size and degree of complexity;
Amendment 199 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. InsistNotes 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 preferences;ies are already embedded in the Union's financial regulatory framework but should be clarified, in the course of defining, establishing and testing a robust and credible green taxonomy, encompassing key investment activities, including investment strategy, risk management, asset allocation, governance and stewardship.
Amendment 223 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Notes the lack of a robust, reliable and uniform definition foran insufficient degree of convergence in the reporting in the framework of the NFRD and the need to define the most strategic ESG metrics for each sectofor an enhanced harmonization with the aim to foster mor sub-sectore consistency; calls on the Commission to create EU-wide multi- stakeholder groups to establish aassess and establish an appropriate list of metrics covering the most significant sustainability risks for each industry as part of a pilot project on this matter;
Amendment 259 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Calls on the Commission to establish a legally binding labelling system for personal bank accounts, investment funds, insurance, and financial products indicating their level of conformity with the Paris Agreement and ESG goals;
Amendment 269 #
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’ guiUnderlines that the ESAs should take account of risks related to environmental, social and governance factors when carrying out their tasks, thereby rendelrines to include ESG issues and on the threg financial market activities more consistent with sustainable objectives. Calls on the 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 recommenda and to provide guidance on how sustainability considerations can be effectively embodied in relevant EU financial legislation, and promote coherent implementation of these provisions upon adoptions;