Next event: Final act published in Official Journal 2019/12/09 more...
- Draft final act 2019/11/27
- Final act signed 2019/11/27
- End of procedure in Parliament 2019/11/25
- Act adopted by Council after Parliament's 1st reading 2019/11/08
- Council Meeting 2019/11/08
- Commission response to text adopted in plenary 2019/08/08
- Results of vote in Parliament 2019/04/18
- Debate in Parliament 2019/04/18
- Decision by Parliament, 1st reading 2019/04/18
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations 2019/04/01
- Coreper letter confirming interinstitutional agreement 2019/03/27
- Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71) 2018/11/14
- Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71) 2018/11/12
- Committee report tabled for plenary, 1st reading 2018/11/09
- Vote in committee, 1st reading 2018/11/05
- Committee decision to open interinstitutional negotiations with report adopted in committee 2018/11/05
- Economic and Social Committee: opinion, report 2018/10/17
- Committee opinion 2018/10/11
- Contribution 2018/10/03
- Amendments tabled in committee 2018/09/17
Progress: Procedure completed
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | ECON | TANG Paul ( S&D) | PIETIKÄINEN Sirpa ( PPE), KAMALL Syed ( ECR), WIERINCK Lieve ( ALDE), SCOTT CATO Molly ( Verts/ALE) |
Committee Opinion | FEMM | ||
Committee Opinion | EMPL | ||
Committee Opinion | ENVI | VĂLEAN Adina-Ioana ( PPE) | Jørn DOHRMANN ( ECR), Gerben-Jan GERBRANDY ( ALDE) |
Lead committee dossier:
Legal Basis:
TFEU 114
Legal Basis:
TFEU 114Subjects
Events
PURPOSE: to introduce transparency requirements on how financial companies integrate environmental, social and governance factors into their investment decisions.
LEGISLATIVE ACT: Regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability‐related disclosures in the financial services sector.
CONTENT: in the absence of harmonised rules on transparency, it is difficult for end-investors to effectively compare different financial products in different Member States in terms of their environmental, social and governance risks and the sustainable investment objectives they pursue. It is therefore necessary to establish a transparency framework to ensure that investors are well informed about the environmental and social impact of their investments.
Subject matter
This Regulation lays down harmonised rules for financial market participants and financial advisers on transparency as regards the integration of sustainability risks and the consideration of adverse sustainability impacts in their processes and the provision of sustainability information in relation to financial products. It requires financial market participants and financial advisers to act in the best interests of investors by exercising due diligence before making the investment.
Transparency obligations
The Regulation provides for the obligation for financial market participants and financial advisers who provide investment advice or insurance advice to make known:
- their policies on the integration of sustainability risks into their investment decision-making process or investment advice;
- the procedures in place to integrate environmental and social risks into their investment and advisory processes and the extent to which these risks could affect the profitability of the investment;
- the reasons why they do not take into account the adverse impacts of investment decisions on sustainability factors, including, where appropriate, information on whether and when they intend to take such adverse impacts into account ;
- where a financial product promotes environmental or social features, information on how those features are met;
- where a financial product has the objective of reducing carbon emissions, information including the low carbon exposure in view of achieving the long‐term global warming objectives of the Paris Agreement;
- the methodologies used to assess, measure and monitor the environmental or social characteristics or the impact of the sustainable investments selected for the financial product, including its data sources, screening criteria for the underlying assets and the relevant sustainability indicators used to measure the environmental or social characteristics or the overall sustainable impact of the financial product.
Financial market participants and financial advisers shall include in their remuneration policies information on how these policies are adapted to the integration of sustainability risks and publish this information on their websites.
Derogations
This Regulation shall neither apply to insurance intermediaries which provide insurance advice with regard to insurance-based investment products nor to investment firms which provide investment advice that are enterprises irrespective of their legal form, including natural persons and self‐employed persons, provided that they employ fewer than three persons.
By 10 September 2022, and annually thereafter, the European Supervisory Authorities shall report to the Commission on best practices and make recommendations towards voluntary reporting standards. The Commission shall evaluate the application of the Regulation by 30 December 2022 at the latest.
ENTRY INTO FORCE: 29.12.2019.
APPLICATION: from 10.3.2021.
The European Parliament adopted by 508 votes to 24, with 19 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341.
The European Parliament’s position adopted at first reading under the ordinary legislative procedure amended the Commission proposal as follows:
Transparency obligations for the publication of sustainability information
The amended Regulation lays down the obligation on the financial market participants and financial advisers which provide investment advice or insurance advice with regard to IBIPs respectively, regardless the design of the financial products and the target market, to publish written policies on the integration of sustainability risks and ensure the transparency of the integration of sustainability risks.
The Regulation shall maintain the requirements for financial market participants and financial advisors to act in the best interests of investors by exercising due diligence before making the investment. It would also require financial market participants to integrate into their procedures and continuously assess not only all relevant financial risks, but also all sustainability risks that could have a significant negative impact on the financial performance of an investment and an advisory, respectively.
Therefore, under the proposed Regulation, financial market participants and financial advisors shall specify in their policies how they integrate these risks and publish these policies. Where they do not take into account the adverse impacts of investment decisions on sustainability factors, they shall publish on their website clear information on why they do not, including, where appropriate, information on whether and when they intend to take these negative impacts into account.
The proposed Regulation also requires financial market participants to:
- include in their remuneration policies information on how their remuneration policies are consistent with the integration of sustainability risks and publish this information on their website;
- include in the published pre-contractual information how sustainability risks are integrated into their investment decisions and the result of the assessment of the likely impact of sustainability risks on the performance of financial products;
- publish information on how environmental or social characteristics are respected when a financial product promotes, among other characteristics, environmental or social characteristics, or a combination of these characteristics;
- publish, where a financial product aims to reduce carbon emissions, information including the low-carbon exposure target for achieving the long-term global warming targets set by the Paris Climate Agreement;
- publish information on the methodologies used to assess, measure and monitor the environmental or social characteristics or impact of the sustainable investments selected for the financial product, including data sources;
- describe, in particular in the periodic reports, the overall sustainability impact of the financial product, using relevant sustainability indicators.
Competent authorities
Each Member State shall ensure that the competent authorities designated in accordance with sectoral legislation, also monitor compliance with requirements placed by this Regulation on financial market participants and financial advisers. The competent authorities shall have all the supervisory and investigatory powers that are necessary for the exercise of their functions under this Regulation.
Exemptions
This Regulation shall not apply to insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice that are enterprises irrespective of their legal form, including natural persons or self-employed persons, provided that they employ fewer than three persons.
The Committee on Economic and Monetary Affairs adopted the report by Paul TANG (S&D, NL) on the proposal for a regulation of the European Parliament and of the Council on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341.
The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the Commission's proposal as follows.
Objectives: the proposed Regulation would establish harmonised rules on transparency to be applied by financial market participants, insurance intermediaries providing advice on insurance-based investment products, investment firms providing investment advice and end-investors concerning:
the integration of sustainability risks and performance into investment decision-making or advisory processes; and the transparency of financial products or services , whether or not they have a targeted sustainability impact.
The objectives of the Regulation would be to (i) strengthen end-investor protection and investor information, (ii) improve disclosure and broaden their investment choices, and (iii) help financial market participants, investment advisors and publicly traded companies to integrate environmental, social and governance risks (ESG factors) into their investment decisions.
Definitions: It is proposed to introduce a clear and harmonised definition of the concepts of "sustainable investments" and "sustainability risks" avoiding any overlap where not in line with the principles of better regulation and proportionality. Sustainable investments would be defined as products associated with strategies to generate environmental, social and governance benefits , including one or a combination of the following investment categories:
investments in an economic activity that significantly contributes to an environmental objective, including key resource efficiency indicators, such as use of energy, use of renewable energy, use of raw materials, production of waste, emissions, CO2 emissions, use of water, use of land and impact on biodiversity; investments in an economic activity that contributes significantly to a social objective, investments that promote or support good governance practices in companies, and in particular companies with sound and transparent management structures and due diligence procedures, employee relations, transparent remuneration policies of relevant staff and tax compliance.
Transparency regarding sustainability risk policies: the amended text requires financial market participants, insurance intermediaries providing insurance advice on insurance-based investment products and investment firms providing investment advice to adopt due diligence policies for sustainability risk assessment and to communicate them annually to the competent authorities.
A brief summary of these policies would be made public, while respecting confidentiality and protecting know-how and trade secrets. The disclosure requirement would be proportionate to the size and systemic importance of the entity.
Credit institutions and insurance companies should also have policies in place to integrate sustainability risks into their investment and credit risk management processes.
Financial market participants and insurance intermediaries should ensure that the detection and management of sustainability risks is sufficiently integrated into their due diligence processes and investment decision-making, so that investors are required to avoid or mitigate ESG factors, explain them and publish them in written form on their websites.
The Commission would adopt delegated acts to lay down a comprehensive and mandatory framework setting out minimum standards for written policies and due diligence processes, as well as guidance on disclosure requirements and on how to the proportionality principle is to be applied.
Transparency in periodical reports: financial market participants offering financial products or services should provide a description in audited and integrated reports, conducted at least annually and containing both financial and non-financial information, the overall impact and performance of the financial product or service in terms of sustainability, using harmonised and comparable sustainability risk indicators .
Publicly traded companies should include in their annual financial statements and consolidated financial statements a description of how they have integrated sustainability performance and risks into their management processes and investment strategy.
The amended text invites the European Banking Authority (EBA) to investigate the feasibility and appropriateness of introducing technical criteria for the Supervisory Review and Evaluation Process (SREP) of risks related to exposures to activities associated mainly with environmental, social and governance (ESG) objectives.
PURPOSE: to strengthen the protection for end-investors and improve the disclosure of information on sustainable investments to them.
PROPOSED ACT: Council Directive.
ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.
BACKGROUND: in the absence of harmonised Union rules on sustainability-related disclosures to end-investors, it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist.
In ensuring compliance with the Paris Climate Agreement, Member States are likely to adopt divergent national measures which could create obstacles to the smooth functioning of the internal market and be detrimental to financial market participants and financial advisors.
This proposal is part of a wider Commission initiative on sustainable development. It aims to bring institutional investors (management companies of undertakings for collective investment in transferable securities (UCITS), alternative investment fund managers (FIA), insurance companies, institutions for occupational retirement provision (IORP), European venture capital fund managers (EuVECA), European social entrepreneurship fund managers (EuSEF) and investment firms) to integrate environmental, social and governance (ESG) criteria into their internal processes and to inform their clients.
The proposal is presented in parallel with a proposal to help investors compare the carbon footprint of investments.
This should ensure that financial market participants — undertakings for collective investment in transferable securities (UCITS) management companies, alternative investment fund managers (AIFMs), insurance undertakings, institutions for occupational retirement provision (IORPs), European venture capital fund (EuVECA) managers, European social entrepreneurship funds (EuSEF) managers and investment firms - that receive a mandate from their clients or beneficiaries to take investment decisions on their behalf would integrate environmental, social and governance (ESG) considerations into their internal processes and inform their clients in this respect .
The proposal is presented in parallel with a proposal to help investors compare the carbon footprint of investments.
IMPACT ASSESSMENT: a clear and coherent approach on integration of ESG risks would have the following economic impacts: end-investors will have more information on how financial market participants and financial advisors integrate ESG risks in their investment decision-making or advisory processes. ESG risks would be more systematically taken into account in financial modelling, leading to an optimal risk-return trade-off at least in the long-term, thereby fostering market efficiency. This will encourage financial market participants and financial advisors to be innovative in investment strategies or in their recommendations.
CONTENT: the proposed Regulation establishes harmonised rules on transparency to be applied by financial market participants , by insurance intermediaries providing advice on insurance-based investment products and by financial advisers in relation to:
the integration of sustainability risks in their investment decision-making processes or, where relevant, advisory processes; transparency as regards financial products which target sustainable investments, including reduction in carbon emissions.
The term ‘sustainable investments’ covers: (i) investments in an economic activity that contributes to an environmental objective; (ii) investments in an economic activity that contributes to a social objective, and in particular an investment that contributes to tackling inequality, an investment fostering social cohesion, social integration and labour relations, or an investment in human capital or economically or socially disadvantaged communities; (iii) investments in companies following good governance practices, and in particular companies with sound management structures, employee relations, remuneration of relevant staff and tax compliance.
Specifically, the proposal:
requires financial market participants to publish written policies on the integration of sustainability risks in investment decision making process; obliges financial market participants to publish them on their websites and maintain the policies up-to-date. This obligation also extends to financial advisors. obliges financial market participants and financial advisors market financial products or services claim that such products or services pursue sustainable investment objectives, obliging them to disclose information on the contribution of the investment decisions to the sustainable investment objectives (ex-post disclosure in regular reporting); provides that financial market participants and financial advisors must ensure that marketing communications do not contradict the information disclosed pursuant to this Regulation.
This proposal amends Directive (EU) 2016/2341 . It empowerments the Commission to adopt delegated acts specifying the ‘prudent person’ rule with respect to the consideration of ESG risks and the inclusion of ESG factors in internal investment decisions and risk management processes.
Documents
- Final act published in Official Journal: Regulation 2019/2088
- Final act published in Official Journal: OJ L 317 09.12.2019, p. 0001
- Draft final act: 00087/2019/LEX
- Commission response to text adopted in plenary: SP(2019)440
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament, 1st reading: T8-0435/2019
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: PE637.263
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: GEDA/A/(2019)002927
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2019)002927
- Committee report tabled for plenary, 1st reading: A8-0363/2018
- Economic and Social Committee: opinion, report: CES2766/2018
- Committee opinion: PE628.607
- Contribution: COM(2018)0354
- Amendments tabled in committee: PE627.830
- Committee draft report: PE626.716
- Legislative proposal: COM(2018)0354
- Legislative proposal: EUR-Lex
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2018)0264
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2018)0265
- Legislative proposal: COM(2018)0354 EUR-Lex
- Document attached to the procedure: EUR-Lex SWD(2018)0264
- Document attached to the procedure: EUR-Lex SWD(2018)0265
- Committee draft report: PE626.716
- Amendments tabled in committee: PE627.830
- Committee opinion: PE628.607
- Economic and Social Committee: opinion, report: CES2766/2018
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2019)002927
- Commission response to text adopted in plenary: SP(2019)440
- Draft final act: 00087/2019/LEX
- Contribution: COM(2018)0354
Activities
- Pavel TELIČKA
Plenary Speeches (4)
- 2016/11/22 Disclosures relating to sustainable investments and sustainability risks (debate)
- 2016/11/22 Disclosures relating to sustainable investments and sustainability risks (debate)
- 2016/11/22 Disclosures relating to sustainable investments and sustainability risks (debate)
- 2016/11/22 Disclosures relating to sustainable investments and sustainability risks (debate)
- Pervenche BERÈS
Plenary Speeches (1)
- Nicola CAPUTO
Plenary Speeches (1)
- Bill ETHERIDGE
Plenary Speeches (1)
- Alex MAYER
Plenary Speeches (1)
- Lieve WIERINCK
Plenary Speeches (1)
- Babette WINTER
Plenary Speeches (1)
Amendments | Dossier |
72 |
2018/0179(COD)
2018/09/05
ENVI
72 amendments...
Amendment 1 #
Proposal for a regulation Title 1 Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on disclosures relating to the sustainab
Amendment 10 #
Proposal for a regulation Recital 3 (3) In the absence of harmonised Union rules on sustainability-related disclosures to end-investors, it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist. Such divergent measures and approaches would continue to cause significant distortions of competition resulting from significant differences in disclosure standards. In addition, a parallel development of market-based practices, based on commercially-driven priorities that produce divergent results currently causes further market fragmentation and might even further exacerbate the functioning of the internal market in the future. Divergent disclosure standards and market-based practices make it very difficult to compare between different financial products and services and create an uneven playing field between these products and services and between distribution channels, and erect additional barriers to the internal market. Such divergences can also be confusing for end- investors and can distort their investment decisions. In ensuring compliance with the Paris Climate Agreement, Member States are likely to adopt divergent national measures which could create obstacles to the smooth functioning of the internal market and be detrimental to financial market participants and financial advisors. In addition, the lack of harmonised rules relating to transparency makes it difficult for end-investors to effectively compare different financial products and services in different Member States as to their
Amendment 11 #
Proposal for a regulation Recital 4 (4) To ensure a coherent application of this Regulation and that the disclosure obligations laid down in this Regulation are clearly and consistently applied by financial market participants, it is necessary to lay down a harmonised definition of ‘sustainable investments’, and 'sustainability risks', based on a harmonised set of indicators. Whilst focusing on material risks, that definition should be forward-looking as to take due consideration of emerging risks.
Amendment 12 #
Proposal for a regulation Recital 4 (4) To ensure a coherent application of this Regulation and that the disclosure obligations laid down in this Regulation are clearly and consistently applied by financial market participants, it is necessary, as far as possible, to lay down a harmonised definition of ‘sustainable investments’.
Amendment 13 #
Proposal for a regulation Recital 5 (5) Remuneration policies of financial market participants
Amendment 14 #
Proposal for a regulation Recital 5 (5)
Amendment 15 #
Proposal for a regulation Recital 6 (6) Since sustainability benchmarks serve as standard points of reference against which sustainable investments are measured, end-investors should be informed by means of pre-contractual disclosures about the appropriateness of the designated index, namely the alignment of that index with the sustainable investment target. Financial market participants should also disclose the reasons for different weighting and constituents of the designated index compared to a broad market index. To further foster
Amendment 16 #
Proposal for a regulation Recital 7 (7) Where a financial product or service targets a reduction in carbon emissions, pre-contractual disclosures
Amendment 17 #
Proposal for a regulation Recital 7 a (new) (7a) Where a financial product or service is made up of bonds, contracts for differences, derivatives or other instruments based on the value of underlying assets, the disclosures should specify clearly the link between achieving the sustainability goals and the value of the assets;
Amendment 18 #
Proposal for a regulation Recital 8 (8) To enhance transparency and comparability, inform
Amendment 19 #
Proposal for a regulation Recital 8 (8) To enhance transparency and inform end-investors, access to information on how sustainability risks are integrated by financial market participants in the investment decision making processes
Amendment 2 #
Proposal for a regulation Recital 1 (1) The transition to a low-carbon, more sustainable, resource-efficient and circular economy, as opposed to an economy based on environment-damaging all-encompassing major trade deals which inevitably promote mass movement of goods that are better produced locally, is key to ensuring long-
Amendment 20 #
Proposal for a regulation Recital 8 (8) To enhance transparency and inform end-investors, access to information on how sustainability risks are integrated by financial market participants in the investment decision making processes and by financial advisors in advisory processes should be regulated by requiring those entities to maintain that information on their websites, in newsletters and other means of communication with the public or as content on online automated assistance services.
Amendment 21 #
Proposal for a regulation Recital 9 (9) The current disclosure requirements set out by Union legislation do not provide that all the information necessary to properly inform end-investors about the sustainability-related impact of their investments must be disclosed. Therefore, it is appropriate to set out more specific disclosure requirements with regard to sustainable investments. For instance, the overall sustainability-related impact of financial products should be reported regularly by means of a harmonised set of indicators, while relevant for the chosen sustainable investment target. Where an appropriate index has been designated as reference benchmark that information should also be provided for the designated index and to a broad market index to allow for comparison. Information on the constituents of the designated index and of the broad market index along with their weightings should also be disclosed, to provide further information on how the sustainable investments targets are achieved. Where EuSEF managers make available information on the positive social impact targeted by a given fund, the overall social outcome achieved and the related methods used in accordance with Regulation (EU) No 346/2013, they may, where appropriate, use this information for the purposes of the disclosures under this Regulation.
Amendment 22 #
Proposal for a regulation Recital 10 (10) Directive 2013/34/EU of the European Parliament and of the Council40 impose transparency obligations as regards social, environmental and corporate governance aspects in non-financial reporting. The required form and presentation established by those Directives is not, however, suitable for direct use by financial market participants and financial advisors when dealing with end-investors. The financial market participants
Amendment 23 #
Proposal for a regulation Recital 10 (10) Directive 2013/34/EU of the European Parliament and of the Council40
Amendment 24 #
Proposal for a regulation Recital 11 (11) To ensure the reliability of information published on financial market participants' and financial advisors' websites, that information should be
Amendment 25 #
Proposal for a regulation Recital 11 (11) To ensure the reliability of information published on financial market participants'
Amendment 26 #
Proposal for a regulation Recital 12 (12) In order to specify how IORPs make investment decisions and assess risks in order to take into account environmental, social and governance risks, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in Directive (EU) 2016/2341. Governance and risk-management rules already apply to the investment decisions and the risks assessments in order to ensure continuity and regularity in the performance of IORPs activities. The investment decisions and the assessment of relevant risks, including environmental, social and governance risks, should be made in such a manner as to ensure compliance with the interests of members and beneficiaries. The activities and underlying processes of IORPs should ensure that the aim of the delegated acts is
Amendment 27 #
Proposal for a regulation Recital 13 (13) The European Banking Authority (‘EBA’), European Insurance and Occupational Pensions Authority (‘EIOPA’) and the European Securities and Markets Authority (‘ESMA’) (collectively known as the ‘ESAs’) established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council,41 Regulation (EU) No 1094/2010 of the European Parliament and of the Council42 and Regulation (EU) No 1095/2010 of the European Parliament and of the Council43 respectively should, through the Joint Committee, develop regulatory technical standards further specifying the details of the presentation and content of the
Amendment 28 #
Proposal for a regulation Recital 16 a (new) (16a) The disclosure rules set out in this Regulation complement the introduction of a full overarching, mandatory due diligence framework for all market participants, both investor and investee companies, including a duty of care component, to be fully phased-in within a transitional period and taking into account the proportionality principles, in line with the OECD Guidelines on due diligence, and building on the European Parliament resolution of 29 May 2018 on sustainable finance which calls for a mandatory due diligence framework.
Amendment 29 #
Proposal for a regulation Recital 18 (18) Since the objectives of this Regulation, namely to strengthen
Amendment 3 #
Proposal for a regulation Recital 1 (1) The transition to a low-carbon, more sustainable, resource-efficient and circular economy is key to ensuring long- term competitiveness of the economy of the Union and its Member States. The Paris Climate Agreement (COP21) as ratified by the Union on 5 October 201631 and entered into force on 4 November 2016, seeks to strengthen the response to climate change, among other means, by making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. __________________ 31 Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 1).
Amendment 30 #
Proposal for a regulation Recital 18 a (new) (18a) To fulfil the obligations of due diligence concerning the sustainability impact and risks, financial market participants need reliable, comparable and harmonised disclosure of information by investee companies. Therefore, the disclosure requirements laid out in this Regulation should apply to publicly listed companies after a transitional period of 18 months following the entry into force of this Regulation. The Commission should accordingly examine if it would be appropriate to propose corresponding amendments to Directive 2013/34/EU.
Amendment 31 #
Proposal for a regulation Article 1 – paragraph 1 This Regulation lays down harmonised rules on the transparency to be applied by financial market participants, insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice
Amendment 32 #
Proposal for a regulation Article 1 – paragraph 1 This Regulation lays down harmonised rules on the transparency to be applied by financial market participants, insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice on the integration of sustainability risks in investment decision-making process or advisory process and the transparency of financial products, including financial products that have as their targets sustainable investments, including the reduction in carbon emissions.
Amendment 33 #
Proposal for a regulation Article 2 – paragraph 1 – point b a (new) (ba) 'publicly listed company' means an undertaking under the scope of the Directive 2013/34/EU;
Amendment 34 #
Proposal for a regulation Article 2 – paragraph 1 – point h – point ii a (new) (iia) a pan-European pension product as proposed in the Regulation 201X/XXX1a; __________________ 1a Regulationof the European Parliament and of the Council on a pan-European Personal Pension Product (PEPP), 2017/0143 (COD).
Amendment 35 #
Proposal for a regulation Article 2 – paragraph 1 – point o – introductory part (o) ‘sustainable investments’ mean
Amendment 36 #
Proposal for a regulation Article 2 – paragraph 1 – point o – introductory part (o) ‘sustainable investments’ mean
Amendment 37 #
Proposal for a regulation Article 2 – paragraph 1 – point o – point i (i) investments in an economic activity that contributes to an environmental objective, including an environmentally sustainable investment as defined in Article 2 of [PO: Please insert reference to Regulation on the establishment of a framework to facilitate sustainable investment]
Amendment 38 #
Proposal for a regulation Article 2 – paragraph 1 – point o – point iii (iii) investments in companies following good governance practices, and in particular companies with sound management and due diligence structures, employee relations, remuneration of relevant staff and tax compliance;
Amendment 39 #
Proposal for a regulation Article 2 – paragraph 1 – point s a (new) (sa) 'sustainability risks' means financial or non-financial risks, material or likely to be materialised in the long term, linked to environmental, social and governance factors, where relevant for a particular investment approach;
Amendment 4 #
Proposal for a regulation Recital 2 (2) A common objective of Directive 2009/65/EC of the European Parliament and of the Council32, Directive 2009/138/EC of the European Parliament and of the Council33, Directive 2011/61/EU of the European Parliament and of the Council34, Directive 2014/65/EU of the European Parliament and of the Council35, Directive (EU) 2016/97 of the European Parliament and of the Council36, Directive (EU) 2016/2341 of the European Parliament and of the Council37, Regulation (EU) No 345/2013 of the European Parliament and of the Council38 and Regulation (EU) No 346/2013 of the European Parliament and of the Council39 is to facilitate the taking-up and pursuit of the activities of undertakings for collective investment in transferable securities (UCITS), alternative investment fund managers (AIFMs), insurance undertakings, investment firms, insurance intermediaries, institutions for occupational retirement provision (IORPs), managers of qualifying venture capital funds (EuVECA managers), and managers of qualifying social entrepreneurship funds (EuSEF managers). Those Directives and Regulations ensure more uniform protection of end-investors and make it easier for them to benefit from a wide range of financial products and services, and at the same time provide for rules that enable investors to make informed investment decisions. While those objectives have been largely achieved, disclosures to end-investors on the integration of sustainability risks and sustainable investment targets in
Amendment 40 #
Proposal for a regulation Article 3 – title Transparency of the sustainability risk policies and the sustainability impact
Amendment 41 #
Proposal for a regulation Article 3 – paragraph 1 1. Financial market participants shall
Amendment 42 #
Proposal for a regulation Article 3 – paragraph 1 1. Financial market participants shall publish written policies on the integration of sustainability risks in the investment
Amendment 43 #
Proposal for a regulation Article 3 – paragraph 2 2. Insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice shall
Amendment 44 #
Proposal for a regulation Article 3 – paragraph 2 2. Insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice shall publish written policies on the integration of sustainability
Amendment 45 #
Proposal for a regulation Article 3 – paragraph 2 a (new) 2a. Financial markets participants and insurance intermediaries shall have in place due diligence processes that ensure that the identification and management of sustainability risks are sufficiently integrated in investment decision-making, requiring investors to identify, prevent, mitigate and account for ESG factors, taking into account the 2017 OECD Guidelines1a, and publish them in written form on their websites. __________________ 1aOECD (2017) Responsible business conduct for institutional investors: Key considerations for due diligence.
Amendment 46 #
Proposal for a regulation Article 3 – paragraph 2 a (new) 2a. The written policies referred to in paragraphs 1 and 2 shall include, among others: (a) an integration of risks related to the impacts of climate change, including both acute and chronic risks for investments; (b) an integration of risks and opportunities related to the transition to a low-carbon economy, including regulatory limits on greenhouse gas emissions, carbon pricing, litigation risks, reputational risks, technology and market risks.
Amendment 47 #
Proposal for a regulation Article 3 – paragraph 2 b (new) 2b. The written policies referred to in paragraphs 1 and 2 shall include among others information on the process of identifying sustainability risks, the methodology and metrics used to assess sustainability risks, the board's oversight on identifying and managing sustainability risks and an overview of the sustainability risks the organisation has identified.
Amendment 48 #
Proposal for a regulation Article 3 – paragraph 2 c (new) 2c. The Commission shall adopt, by 30 June 2019, delegated acts specifying in further detail the requirements for the written policies and the due diligence processes to evaluate their implementation.
Amendment 49 #
Proposal for a regulation Article 4 – title Amendment 5 #
Proposal for a regulation Recital 2 (2) A common objective of Directive 2009/65/EC of the European Parliament and of the Council32, Directive 2009/138/EC of the European Parliament and of the Council33, Directive 2011/61/EU of the European Parliament and of the Council34, Directive 2014/65/EU of the European Parliament and of the Council35, Directive (EU) 2016/97 of the European Parliament and of the Council36, Directive (EU) 2016/2341 of the European Parliament and of the Council37, Regulation (EU) No 345/2013 of the European Parliament and of the Council38 and Regulation (EU) No 346/2013 of the European Parliament and of the Council39 is to facilitate the taking-up and pursuit of the activities of undertakings for collective investment in transferable securities (UCITS), alternative investment fund managers (AIFMs), insurance
Amendment 50 #
Proposal for a regulation Article 4 – paragraph 1 – point a (a) the procedures and conditions applied for integrating sustainability risks, including amongst others the risks related to the impacts of climate change and the risks and opportunities related to the transition to a low-carbon economy, in investment decisions;
Amendment 51 #
Proposal for a regulation Article 4 – paragraph 1 – point a (a) the due diligence procedures and conditions applied for integrating sustainability risks in investment decisions;
Amendment 52 #
Proposal for a regulation Article 4 – paragraph 1 – point b (b) the extent to which sustainability risks, including amongst others the risks related to the impacts of climate change and the risks and opportunities related to the transition to a low-carbon economy, are expected to have a relevant impact on the returns of the financial products made available;
Amendment 53 #
Proposal for a regulation Article 4 – paragraph 1 – point b (b) the extent to which sustainability risks are expected to have a relevant impact on environmental, social and governance issues and on the returns of the financial products made available;
Amendment 54 #
Proposal for a regulation Article 4 – paragraph 1 – point b a (new) (ba) scenarios and projected costs related to carbon pricing, from emissions trading, taxation or other relevant regulatory requirements, that have been taken into account in the assessments of the sustainability risks;
Amendment 55 #
Proposal for a regulation Article 4 – paragraph 1 – point b b (new) (bb) the results of a Climate Stress Test using scenario analysis for assessing a number of possible future developments, including the following scenarios: (i) a "rapid decarbonisation" scenario with a 15-years global transition in all economic sectors towards net-zero greenhouse gas emissions. (ii) an "uncontrolled warming" scenario with the effects of 4 degrees Celsius global temperature increase above pre-industrial levels.
Amendment 56 #
Proposal for a regulation Article 4 – paragraph 1 – point c a (new) (ca) in terms of shareholder voting with regards to sustainable investments and the mitigation of sustainability risks, the voting instructions and voting rationales behind votes against management, abstentions and contentious votes;
Amendment 57 #
Proposal for a regulation Article 4 – paragraph 2 – point a (a) the procedures and conditions applied for integrating sustainability risks, including amongst others the risks related to the impacts of climate change and the risks and opportunities related to the transition to a low-carbon economy, in investment advice or insurance advice;
Amendment 58 #
Proposal for a regulation Article 4 – paragraph 2 – point b (b) the extent to which sustainability risks, including amongst others the risks related to the impacts of climate change and the risks and opportunities related to the transition to a low-carbon economy, are expected to have a relevant impact on the returns of the financial products advised on;
Amendment 59 #
Proposal for a regulation Article 4 – paragraph 2 – point b (b) the extent to which sustainability risks are expected to have a relevant impact on environmental, social and governance issues and on the returns of the financial products advised on;
Amendment 6 #
Proposal for a regulation Recital 2 (2) A common objective of Directive 2009/65/EC of the European Parliament and of the Council32 , Directive
Amendment 60 #
Proposal for a regulation Article 4 – paragraph 2 – point b a (new) (ba) scenarios and projected costs related to carbon pricing, from emissions trading, taxation or other relevant regulatory requirements, that have been taken into account in quantitative assessments of the sustainability risks;
Amendment 61 #
Proposal for a regulation Article 4 – paragraph 2 – point b b (new) (bb) the results of a Climate Stress Test using scenario analysis for assessing a number of possible future developments, including the following scenarios: (i) a "rapid decarbonisation" scenario with a 15-years global transition in all economic sectors towards net-zero greenhouse gas emissions. (ii) an "uncontrolled warming" scenario with the effects of 4 degrees Celsius global temperature increase above pre-industrial levels.
Amendment 62 #
Proposal for a regulation Article 4 – paragraph 3 – point i a (new) (ia) for publicly listed companies, in accordance with Directive 2013/34
Amendment 63 #
Proposal for a regulation Article 4 – paragraph 3 a (new) 3a. The disclosures referred to in paragraphs 1 and 2 shall contain all information that would be material to an investor’s investment decision. That information shall be fairly presented, shall not be misleading or deceptive and shall contain no material omission of information.
Amendment 64 #
Proposal for a regulation Article 5 – title Transparency of the sustainab
Amendment 65 #
Proposal for a regulation Article 6 – paragraph 1 – subparagraph 1 – point b (b) information on the methodologies used to assess, measure and monitor the sustainability impact of th
Amendment 66 #
Proposal for a regulation Article 6 – paragraph 1 – subparagraph 2 The information to be disclosed pursuant to the first subparagraph shall be published in a clear way and in a prominent area of the website, in a manner that is understandable to different stakeholders including a non-specialised audience with different levels of financial literacy.
Amendment 67 #
Proposal for a regulation Article 7 – paragraph 1 – introductory part 1. Where financial market participants make available a financial product referred to in paragraphs (1), (2) and (3) of Article 5, they shall include a description of the following in periodical
Amendment 68 #
Proposal for a regulation Article 7 – paragraph 1 – point a (a) the overall sustainability-related impact by the financial product by means of
Amendment 69 #
Proposal for a regulation Article 7 – paragraph 1 – point b a (new) (ba) Publicly listed companies shall include a description of how the sustainability impact and risks have been incorporated in the management processes and investment strategy in the annual financial statements and consolidated financial statements referred to in Directive 2013/34/EU.
Amendment 7 #
Proposal for a regulation Recital 3 (3) In the absence of harmonised Union rules on sustainability-related disclosures
Amendment 70 #
Proposal for a regulation Article 7 – paragraph 2 – point h a (new) (ha) for publicly listed companies, in accordance with the periodical statements referred to in Directive 2013/34.
Amendment 71 #
Proposal for a regulation Article 11 – paragraph 1 By [PO: Please insert date
Amendment 72 #
Proposal for a regulation Article 11 – paragraph 1 By [PO: Please insert date 36
Amendment 8 #
Proposal for a regulation Recital 3 (3) In the absence of harmonised Union rules on sustainability-related disclosures to end-investors, it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist.
Amendment 9 #
Proposal for a regulation Recital 3 (3) In the absence of harmonised Union rules on sustainability-related disclosures to end-investors, it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist. Such divergent measures and approaches would continue to cause significant distortions of competition resulting from significant differences in disclosure standards. In addition, a parallel development of market-based practices, based on commercially-driven priorities that produce divergent results currently causes further market fragmentation and might even further exacerbate the functioning of the internal market in the future. Divergent disclosure standards and market-based practices make it very difficult to compare between different financial products and services and create an uneven playing field between these products and services and between distribution channels, and erect additional barriers to the internal market. Such divergences can also be confusing for end- investors and can distort their investment decisions. In ensuring compliance with the Paris Climate Agreement, Member States are likely to adopt divergent national measures which could create obstacles to the smooth functioning of the internal market and be detrimental to financial market participants
source: 627.577
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