2018/2007(INI) | [ParlTrack]

Motion for a resolution
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 10 #

Motion for a resolution
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 100 #

Motion for a resolution
Paragraph 3

Amendment 101 #

Motion for a resolution
Paragraph 3

Amendment 102 #

Amendment 103 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Thierry CORNILLET

Motion for a resolution
Paragraph 3

3. Emphasises the massive systemic risks that stranded carbon assets could represent to financial stability if not priced with a view to their long-term risk profile; stresses the need for the identification and ~~mandatory reporting of these asset~~prudent management to these exposures as essential to the orderly transition to climate-positive investments; calls ~~for the introduction of ‘carbon stress tests’ for~~on banks and other financial intermediaries to introduce ‘carbon stress tests’ to determine the risks related to such stranded assets;

Amendment 104 #

Esther DE LANGE

Motion for a resolution
Paragraph 3

3. Emphasises the mapossivble systemic risks that stranded carbon assets represent to financial stability; stresses the need for the identification and, after a transitory period, mandatory reporting of these 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;

Amendment 105 #

Motion for a resolution
Paragraph 3

3. Emphasises the ~~massive~~potential systemic risks that stranded carbon assets represent to financial stability; stresses the need for the identification and mandatory reporting of these assets as essential to the orderly transition to climate-positive investments; calls fto explore the possibility of introduc~~tion of~~ing ‘carbon stress tests’ for banks and other financial intermediaries to determine the risks related to such stranded assets;

Amendment 106 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL, Thierry CORNILLET

Motion for a resolution
Paragraph 3 a (new)

3 a. Emphasizes the potential risks to systemic shocks that could develop as a consequence of an abrupt shift in finance to sustainability; calls for the need to work towards a balanced, stable and gradual transition, that enables stakeholders to orientate themselves towards a higher degree of sustainability; emphasizes that sufficient access to capital plays an essential role in this process;

Amendment 107 #

Motion for a resolution
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; as well as attaining the UN Sustainable Development Goals by 2030; welcomes the clarification provided by EUROSTAT on the treatment of energy performance contracts in national accounts as such clarified treatment may unlock considerable public capital flows towards a sector that currently accounts for three-quarters of the EU’s 2030 clean energy investment gap; asks the Commission to explore further a qualified treatment for public investments related to ESG goals so as to spread the cost of these projects over the lifecycle of related public investment;

Amendment 108 #

Motion for a resolution
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 109 #

Motion for a resolution
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~~; invites the Commission to take note of the results of the mid-term review of the 7th Environment Action Programme (EAP) and in particular of the fact that its objectives are unlikely to be met by 2020; calls on the Commission to make the resources available to achieve these goals and additional ones with a view to the 2050 horizon;

Amendment 11 #

Motion for a resolution
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 110 #

Simona BONAFÈ, Paul TANG, Renato SORU, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
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 111 #

Renato SORU, Simona BONAFÈ, Luigi MORGANO, Andrea COZZOLINO

Motion for a resolution
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 and sustainability goals within the next five years; based on this evaluation and planning, each member-state under an EU strategy should issue a national investment plan for sustainable finance.

Amendment 112 #

Motion for a resolution
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 113 #

Motion for a resolution
Paragraph 4

Amendment 114 #

Motion for a resolution
Paragraph 4

Amendment 115 #

Motion for a resolution
Paragraph 4

4. Calls on the Member States, in coordination with the Commission, the ESAs 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;

Amendment 116 #

Motion for a resolution
Paragraph 4 a (new)

4a. Calls on the Member States to assess the cost and funding of the necessary national and municipal public investment, with a view to ensuring that the ample funding available for investment is used where the need for, and the returns on, sustainable investment are greatest, whether to repair mould-infected local-authority schools or to modernise water treatment technologies;

Amendment 117 #

Motion for a resolution
Paragraph 4 a (new)

4 a. Calls on the Commission and Member States to work towards phasing out direct and indirect subsidies to fossil fuels.

Amendment 118 #

Putting ESG ~~fac~~indicators at the heart of EU financial decision-making and establishing an EU sustainability taxonomy

Amendment 119 #

Motion for a resolution
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 12 #

Motion for a resolution
Citation 20

~~— having regard to China’s dominance in the issuance of green bonds and to the need for a European definition of a green bond that includes social as well as ecological criteria,~~deleted

Amendment 120 #

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder process, including both experts in climate science and financial sector participants, to establish by the end of 2019 a robust ~~and~~, credible ~~green taxonomy, including a ‘Green Finance Mark’, through a legislative initiative;~~and technology- neutral sustainability taxonomy based on indicators that disclose the full impact of investments on sustainability and allow for comparison of investments and companies; emphasises the need to develop such sustainability indicators as a first step in the process of developing a EU sustainability taxonomy and to incorporate these indicators in integrated reporting.

Amendment 121 #

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credible ~~green~~sustainability 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 122 #

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credible green taxonomy~~, including a ‘Green Finance Mark’, through a legislative initiative;~~ which is in line with initiatives in taken in this regards in other parts of the world, including a ‘Green Finance Mark’, through a legislative initiative; and calls to take into account the commitments of the UN Sustainable Development Goals when defining the taxonomy.

Amendment 123 #

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credible green taxonomy, including a ‘Green Finance Mark’, through a legislative initiative; insists that, in a second step, further taxonomies need to be developed to cover all areas of ESG;

Amendment 124 #

Motion for a resolution
Paragraph 5

5. ~~Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credible green taxonomy, including a ‘G~~Notes that there is currently no workable definition of such concepts as 'green Ffinanc~~e Mark’, through a legislative initiative~~ing' or 'sustainability in finance';

Amendment 125 #

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder, inclusive and credible process to establish by the end of 2019 a robust and credible green sustainability taxonomy, including a ‘Green Finance Mark’, providing the necessary legal framework through a legislative initiative;;

Amendment 126 #

Anne SANDER

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder process through a technical working committee and a consultation process to establish by the end of 2019 a robust and credible green taxonomy, including a ‘Green Finance Mark’, through a legislative initiative;

Amendment 127 #

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credible green taxonomy, including a ‘Green Finance Mark’ if deemed appropriate after a consultation process, through a legislative initiative;

Amendment 128 #

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credible ~~green~~sustainable taxonomy, including a ‘~~Green~~Sustainable Finance Mark’, through a legislative initiative;

Amendment 129 #

Motion for a resolution
Paragraph 5

5. Calls on the Commission to lead a multi-stakeholder process to establish by the end of 2019 a robust and credible green taxonomy~~, including a ‘Green Finance Mark’,~~ through a legislative initiative;

Amendment 13 #

Motion for a resolution
Citation 20

— having regard to China’s ~~dominance~~significant advancement in the issuance of green bonds and to the need for a European definition of a green bond that includes social as well as ecological criteria,

Amendment 130 #

Motion for a resolution
Paragraph 5 a (new)

5 a. Notes that sustainability indicators already exist, but that the current voluntary reporting frameworks lack harmonisation; hence calls for the Commission to develop a harmonised list of sustainability indicators based on the existing work by, among others, GRI, UN PRI, the European Commission, the OECD, and the private sector, particularly the existing Eurostat resource efficiency indicators;

Amendment 131 #

Motion for a resolution
Paragraph 6

6. Recommends that this taxonomy include three levels: 1. a minimum standard aligned with the Paris Agreement and the do-no-harm principle in accordance with ESG risk analysis; 2. an intermediate level identifying activities that are demonstrably achieving a ‘Positive Impact’ as defined by the UNEP FI; 3. a level including activities that can accelerate a positive transformation and support ecological regeneration;deleted

Amendment 132 #

Motion for a resolution
Paragraph 6 – introductory part

6. Recommends that this taxonomy ~~include three levels:~~be designed as a ‘meta’ framework onto which existing (and future) definitions that are used in a variety of contexts can be mapped, that provides a high level of granularity, enabling comparability of different standards and products, that is a continuously evolving tool, providing a neutral framework, developed by scientific, technical and financial experts;

Amendment 133 #

Motion for a resolution
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 134 #

Motion for a resolution
Paragraph 6 – introductory part

6. Recommends that this taxonomy shall take the principle of proportionality for small and medium-sized insitutions into account and include three levels:

Amendment 135 #

Motion for a resolution
Paragraph 6 – introductory part

6. Recommends that this taxonomy ~~include~~takes into account the principles of flexibility and proportionality and sets minimum parameters including three levels:

Amendment 136 #

Motion for a resolution
Paragraph 6 – point 1

~~1. a minimum standard aligned with the Paris Agreement and the do-no-harm principle in accordance with ESG risk analysis;~~deleted

Amendment 137 #

Paul TANG, Molly SCOTT CATO, Pervenche BERÈS, Neena GILL

Motion for a resolution
Paragraph 6 – point 1

1. a minimum standard ~~aligned with the Paris Agreement and the do-no-harm principle in accordance with ESG risk analysis;~~ of ESG risks and factors which builds on the UNEP Inquiry Definition of sustainability factors, is aligned with the Paris Agreement, the UN Sustainable Development Goals, Agenda 2030 and in line with international human rights, and international humanitarian, labour and environmental laws and the do-no-harm principle in accordance with ESG risk analysis, including at a minimum: (a) Environmental factors –climate change risks, bio-diversity ,waste, pollution, water security and deforestation, and remaining within planetary boundaries (b) Social factors – human rights (including Free, Prior and Informed Consent of local communities), customary rights, workers` rights, women’s and children´s rights, health and safety, and conflict situations (c) Governance factors –corporate governance, tax strategies, remuneration and measures to tackle corruption, tax avoidance and evasion and money laundering

Amendment 138 #

Motion for a resolution
Paragraph 6 – point 1

1. a minimum standard aligned with the Paris Agreement ~~and the do-no-harm principle in accordance with ESG risk analysis;~~, the SDGs, Agenda 2030 and in line with international human rights and international humanitarian, labour and environmental laws and the do-no-harm principle in accordance with ESG risk analysis including at a minimum: a) Environmental factors – climate change risks, bio-diversity ,waste, pollution, water security and deforestation b) Social factors – human rights, workers rights, women’s rights, health and safety c) Governance factors – measures to tackle corruption, tax evasion and money laundering

Amendment 139 #

Motion for a resolution
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 14 #

Motion for a resolution
Citation 20 a (new)

- having regard to the pioneering role of the European Investment Bank (EIB) by issuing the world’s first green bond and becoming the world’s largest issuer of green bonds as of January 2018;

Amendment 140 #

Motion for a resolution
Paragraph 6 – point 1 a (new)

1 a. Calls on the European Commission to introduce an mandatory framework of due diligence as a mean through which investors will be required to identify, prevent, mitigate and account for ESG factors and risks based on the 2017 OECD Guidelines for Responsible Business Conduct for Institutional Investors;

Amendment 141 #

Motion for a resolution
Paragraph 6 – point 2

~~2. an intermediate level identifying activities that are demonstrably achieving a ‘Positive Impact’ as defined by the UNEP FI;~~deleted

Amendment 142 #

Motion for a resolution
Paragraph 6 – point 3

~~3. a level including activities that can accelerate a positive transformation and support ecological regeneration;~~deleted

Amendment 143 #

Motion for a resolution
Paragraph 6 a (new)

6 a. Underlines that the taxonomy should strike the right balance between commitment and flexibility, which means that framework should be mandatory and standardised, but should also be regarded as an evolving tool which can take on board emerging risks and/or risks that have yet to be mapped in a proper way.

Amendment 144 #

Motion for a resolution
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)

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

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 #

Simona BONAFÈ, Paul TANG, Renato SORU, Andrea COZZOLINO, Luigi MORGANO, Pervenche BERÈS

Motion for a resolution
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 148 #

Motion for a resolution
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~~indicators in the review of all legislation related to the financial sector; Welcomes the recommendation of the European Commission High-Level Expert Group on Sustainable Finance to embed the ‘Think Sustainability First’ principle throughout the EU’s decision-making implementation and enforcement process.

Amendment 149 #

Simona BONAFÈ, Renato SORU, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
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; stresses, however, the need to ensure comparability of the risks associated with products by separating financial risks from environmental risks; 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, but without jeopardising the ability of consumers to evaluate the yields and risks associated with their investments;

Amendment 15 #

Motion for a resolution
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 150 #

Motion for a resolution
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 151 #

Motion for a resolution
Paragraph 7

Amendment 152 #

Motion for a resolution
Paragraph 7

Amendment 153 #

Motion for a resolution
Paragraph 7

7. ~~Welcomes~~Notes that the recent inclusion of sustainability issues in the PRIIPs and STS Regulations, as well as in Shareholders Rights Directive and the NFRD; a~~pplaud~~cknowledges 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;~~

Amendment 154 #

Motion for a resolution
Paragraph 7

Amendment 155 #

Motion for a resolution
Paragraph 7

Amendment 156 #

Motion for a resolution
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; ~~applaud~~welcomes the inclusion in the IORPs Directive of recognition of stranded assets; asks for the transversal integration of sustainable finance criteria in all relevant legislation related to the financial sector;

Amendment 157 #

Motion for a resolution
Paragraph 7

Amendment 158 #

Simona BONAFÈ, Renato SORU, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
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; ~~applaud~~welcomes the inclusion in the IORPs Directive of recognition of stranded assets; ~~ask~~proposes for the transversal integration of sustainable finance criteria in all legislation related to the financial sector;

Amendment 159 #

Esther DE LANGE

Motion for a resolution
Paragraph 7

Amendment 16 #

Motion for a resolution
Citation 25

— having regard to the recommendation in the HLEG fin~~terim~~al report of Julanuary 20178 that the Commission should conduct a sustainability test on all financial legislative proposals,

Amendment 160 #

Renato SORU, Simona BONAFÈ, Luigi MORGANO, Andrea COZZOLINO, Paul TANG

Motion for a resolution
Paragraph 7 a (new)

7 a. Believes that the sustainable finance principles should play a significant role in the discussion on the pan-European pension product (PEPP), due both to its importance for Capital Markets Union and to its orientation towards long-term investment; asks for an effective inclusion of the ESG criteria in the PEPP regulation;

Amendment 161 #

Simona BONAFÈ, Renato SORU, Andrea COZZOLINO, Luigi MORGANO, Pervenche BERÈS

Motion for a resolution
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 162 #

Motion for a resolution
Paragraph 8

8. Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks within the framework of capital adequacy rules; stresses that capital adequacy rules must be based on and fully reflect demonstrated risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose; stresses, at the same time, that concern for sustainable financing must not undermine efforts to restore financial stability, or for deepening integration and increasing the level of EU spending, but that in all action, including the use of EU funds, an effort should be made to improve the allocation of resources, in order to safeguard the environment and save resources;

Amendment 163 #

Motion for a resolution
Paragraph 8

8. Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks within the framework of capital adequacy rules; stresses that capital adequacy rules must be based on and fully reflect ade~~monstrat~~quately assessed risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose; urges the Commission to assess the climate, societal and stability benefits of additional measures beyond the integration of ESG risks and factors into the prudential framework of financial institutions, including a brown add-on factor, exposure limits and specific capital surcharges;

Amendment 164 #

Motion for a resolution
Paragraph 8

8. ~~Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks within the framework of capital adequacy~~Stresses that only risk aspects should play a ruole~~s; stresses that~~ when laying down capital adequacy rules ~~must be based on and fully reflect demonstrated risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose~~and that no extraneous criteria should be brought into play;

Amendment 165 #

Jakob von WEIZSÄCKER

Motion for a resolution
Paragraph 8

8. Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks within the framework of capital adequacy rules; stresses that capital adequacy rules must be based on and fully reflect demonstrated risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose; emphasises the need to introduce a brown-penalizing factor into the prudential framework for financial institutions in order to adequately account for climate change risks associated with carbon-intensive assets;

Amendment 166 #

Motion for a resolution
Paragraph 8

8. Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks within the framework of capital adequacy rules; stresses that capital adequacy rules must be based on and fully reflect demonstrated risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose; urges the Commission to assess the climate, societal and financial stability benefits of the introduction of a “brown factor” in capital requirements legislation,

Amendment 167 #

Motion for a resolution
Paragraph 8

8. Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks within the framework of capital adequacy rules, and promote the inclusion of sustainability risks in the Basel IV framework to ensure sufficient capital reserves; stresses that capital adequacy rules must be based on and fully reflect demonstrated risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose;

Amendment 168 #

Simona BONAFÈ, Paul TANG, Renato SORU, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
Paragraph 8

8. Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainab~~ility~~le 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 risk~~demonstrated 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 169 #

Motion for a resolution
Paragraph 8

8. ~~Asks~~Calls on the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks within the framework of capital adequacy rules; stresses that capital adequacy rules must be based on and fully reflect demonstrated risks; ~~aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose~~calls on the Commission to develop a ‘sustainability test’ for all future EU financial regulations and policies, and for financial instruments to achieve greater policy steering effects;

Amendment 17 #

Simona BONAFÈ, Renato SORU, Andrea COZZOLINO, Luigi MORGANO, Pervenche BERÈS

Motion for a resolution
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 170 #

Anne SANDER

Motion for a resolution
Paragraph 8

8. Asks the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks within the framework of capital adequacy rules; stresses that capital adequacy rules must be based on and fully reflect demonstrated risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purposeintroducing a green supporting factor based on a deep and thorough analysis of the risks related to green assets; emphasis that additional capital from the private sector is needed to meet the Paris agreement goal ; stresses that capital adequacy rules must be based on and fully reflect demonstrated risks;

Amendment 171 #

Motion for a resolution
Paragraph 8

8. Asks the Commission to adopt a regulatory strategy aimed inter alia at ~~measur~~assessing sustainability risks within the framework of capital adequacy rules; stresses that capital adequacy rules must be based on and fully reflect demonstrated risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose;

Amendment 172 #

Motion for a resolution
Paragraph 8

8. ~~Ask~~Urges the Commission to adopt a regulatory strategy aimed inter alia at measuring sustainability risks ~~within the framework of capital adequacy rules~~; stresses that capital adequacy rules must be based on and fully reflect demonstrated sustainability risks; aims to initiate an EU pilot project within the next annual budget to begin developing methodological benchmarks for that purpose;

Amendment 173 #

Motion for a resolution
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 174 #

Motion for a resolution
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 #

Simona BONAFÈ, Paul TANG, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
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 176 #

Motion for a resolution
Paragraph 8 a (new)

8 a. Asks the Commission to explore whether credit guidance could be provided to the banking sector with a view of ensuring that a gradually increasing share of the balance sheet size would be earmarked to ESG related sectors;

Amendment 177 #

Motion for a resolution
Paragraph 8 a (new)

8 a. Calls for the Commission to incorporate sustainability indicators in a mandatory and audited integrated reporting framework, and notes the upcoming review of the NFRD as an opportunity for this.

Amendment 178 #

Motion for a resolution
Paragraph 8 b (new)

8 b. Stresses that, since finance is a means to an end, financial flows should become aligned with policy objectives, notably on sustainability; recommends that the Commission implements this commitment through a sustainability test of all financial legislative proposals to ensure that they integrate clear objectives to realign financial flows with EU sustainability policy objectives; underlines however that fostering sustainable finance may not undermine prudential regulation;

Amendment 179 #

Motion for a resolution
Paragraph 8 b (new)

8 b. Stresses that insurance companies should be subject to binding legislation and regulation that requires them to disclose the ESG impact of all their investments, to exercise due diligence and to be held accountable for negative ESG impacts; asks for the inclusion of sustainability factors into each of the three pillars of Solvency II;

Amendment 18 #

Simona BONAFÈ, Renato SORU, Andrea COZZOLINO, Luigi MORGANO, Pervenche BERÈS

Motion for a resolution
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 180 #

Motion for a resolution
Paragraph 8 c (new)

8 c. Calls on the European Commission to introduce an over-arching, mandatory due diligence framework based on the 2017 OECD Guidelines for Responsible Business Conduct for Institutional Investors, requiring investors to identify, prevent, mitigate and account for ESG factors and risks, with public disclosure through obligation of annual reporting;

Amendment 181 #

Motion for a resolution
Paragraph 9

Amendment 182 #

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 NFRD to include mandatory disclosure within these two frameworks as from 2020 which would include a transposition period in which companies could prepare for implementation; reiterates that Article 173 of the French Energy Transition Bill already offers a welcome possible template for binding regulation on mandatory climate risk disclosure by investors;

Amendment 183 #

Simona BONAFÈ, Paul TANG, Pervenche BERÈS, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
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 184 #

Motion for a resolution
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 NFRD~~ by creating a framework for a voluntary, consistent disclosure framework able to improve both producing and using climate related financial disclosure; stresses in this respect that the reporting framework should be proportionate to the actual risks incurred by the institution, its complexity and degree of sophistication;

Amendment 185 #

Motion for a resolution
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 and to explore how to expand disclosure requirements to all areas of ESG; urges the Commission to include mandatory disclosure in the framework of the revision of the Accounting Directive and the NFRD; is of the opinion that such disclosure requirements should be streamlined globally;

Amendment 186 #

Motion for a resolution
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 NFRD~~stresses 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 187 #

Motion for a resolution
Paragraph 9

Amendment 188 #

Motion for a resolution
Paragraph 9

Amendment 189 #

Motion for a resolution
Paragraph 9

9. Emphasises that disclosure is a critical enabling condition for sustainable finance; ~~applaud~~welcomes 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 NFRD;

Amendment 19 #

Paul TANG, Simona BONAFÈ, Neena GILL

Motion for a resolution
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 190 #

Motion for a resolution
Paragraph 9 a (new)

9 a. Upholds that mandatory disclosure and standardisation is also a key from the perspective of green investors; underlines in this context that the regulation on simple, transparent and standardised securitisation requires issuers to disclose ESG characteristics of mortgages and auto loans, which may help to build green investment portfolio’s and accelerate the greening of our economy;

Amendment 191 #

9 a. Stresses that regulatory complexity might raise barriers to entry, undermine progress in sustainable lending and banking services and unduly impair credit support to the real economy; in this context stresses that proportionality should be duly accounted when designing new policies;

Amendment 192 #

Motion for a resolution
Paragraph 9 a (new)

9 a. Calls on the EU to actively promote the inclusion of the sustainability indicators in the IFRS framework at the international level.

Amendment 193 #

Motion for a resolution
Paragraph 9 b (new)

9 b. Recommends that the type of disclosure currently required under the PRIIPs regulation and through the Key Information Document should become mandatory for all retail financial products and independent of whether they have a demonstrated environmental or social objective;

Amendment 194 #

Motion for a resolution
Paragraph 9 b (new)

9 b. Calls for incorporating the cost of non-action on climate and other sustainability risks in all EU legislation and funding impact assessments.

Amendment 195 #

Motion for a resolution
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 196 #

Motion for a resolution
Paragraph 9 c (new)

9 c. Calls for incorporating the cost of non-action on climate and other sustainability risks as part of the risk management and due diligence assessment of company boards and public authorities, and as part of the fiduciary duty of investors.

Amendment 197 #

Paul TANG, Neena GILL

Motion for a resolution
Paragraph 9 d (new)

9 d. Clarifies that, especially in the short term when standardisation is not yet available, financial companies have a duty of care which means that they should identify, mitigate, prevent and publicly disclose all relevant information on risks, including at least financially materially risks, sustainability risks and risks relating to the broader corporate goals; requires that this information should be signed off by the board, CEO or CFO

Amendment 198 #

Motion for a resolution
Paragraph 10

Amendment 199 #

Renato SORU, Simona BONAFÈ, Luigi MORGANO, Andrea COZZOLINO

Motion for a resolution
Paragraph 10

10. ~~Insist~~Notes 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 2 #

Motion for a resolution
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 20 #

Motion for a resolution
Citation 30 a (new)

- having regard to the Sendai Framework for Disaster Risk Reduction and ‘Priority 3: Investing in disaster risk reductionfor resilience’ including Article 30 (m) to ‘to promote, as appropriate, the integration of disaster risk reduction considerations and measures in financial and fiscal instruments;

Amendment 200 #

Motion for a resolution
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 preferences; recommends that such guidance should clarify that asset owners have a duty to pay attention to long-term factors including ESG factors and may consider non-financially material ESG preferences of clients and beneficiaries;

Amendment 201 #

Motion for a resolution
Paragraph 10

10. Insists that fiduciary duty should be extended to encompass a mandatory ‘two- way’ integration process whereby a~~sset managers are obliged to consider ESG factors and clients are asked about their timeframe and sustainability preference~~ll 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 202 #

Motion for a resolution
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 material ESG factors, including the cost of non- action on climate and sustainability risks, and clients are proactively asked about their timeframe and sustainability preferences;

Amendment 203 #

Motion for a resolution
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 #

Simona BONAFÈ, Paul TANG, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
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 205 #

Motion for a resolution
Paragraph 10 a (new)

10 a. Calls for the introduction of a mandatory environmental liability insurance for all commercial and public activities as a precondition for authorisation permit;

Amendment 206 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Thierry CORNILLET

Motion for a resolution
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 207 #

Motion for a resolution
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; Calls on the EU institutions to ensure the allocation of sufficient funding to the ESAs to fulfill this task;

Amendment 208 #

Simona BONAFÈ, Paul TANG, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
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 209 #

Motion for a resolution
Paragraph 11 a (new)

11 a. Highlights that sustainable finance requires a clarification of European companies’ directors’ duties concerning long-term sustainable value creation, ESG matters, and systemic risks, as part of the directors’ overarching duty to promote the success of the company; calls on the Commission to integrate these aspects of directors’ duties in the European corporate governance framework, stresses that aligning the legal duties of investors with those of company directors through a revision of SRD II and NFRD would also contribute to creating the correct ecosystem to achieve the goals of sustainable finance, in particular in addition to the appropriate standards of corporate reporting and due diligence, as well as the information necessary for investors in their own decision-making;

Amendment 21 #

Motion for a resolution
Citation 30 b (new)

- having regard to the UNISDR and CRED report entitled The Human Cost of Weather Related Disasters 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 $300 billion in economic damages every year1a. _________________ 1aUN Office for Disaster Risk Reduction https://www.unisdr.org/files/46796_cop21 weatherdisastersreport2015.pdf

Amendment 210 #

Motion for a resolution
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 211 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Thierry CORNILLET

Motion for a resolution
Paragraph 11 a (new)

11a. Calls on the European supervisory authorities to formulate guidelines on the collection of statistics on the identification and integration into financing of environmental, social and governance risks, and calls for statistics to be published wherever possible;

Amendment 212 #

Hugues BAYET

Motion for a resolution
Paragraph 11 a (new)

11a. Calls on the EU authorities to reintroduce market regulation instruments; emphasises the need to enhance health-, climate- and economic- risk management tools;

Amendment 213 #

Motion for a resolution
Paragraph 11 a (new)

11 a. Calls on the ESA's to explore the option to develop a sustainability stress test;

Amendment 214 #

Motion for a resolution
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 215 #

Motion for a resolution
Paragraph 12

12. Asks that stewardship form an integral part of the legal duties of investors to be reflected through disclosure of major holdings, engagement activities, the use of proxy advisers and the use of passive investment vehicles; recommends that passive funds, led by index-based investment, should be encouraged to disclose their stewardship activities and the extent to which the use of passive indexing and benchmarking allows for the proper identification of ESG risks in investee companies; considers that index providers should be asked to provide details of the exposure of widely used and referenced benchmarks to climate and sustainability parameters;

Amendment 216 #

Motion for a resolution
Paragraph 12

12. Asks that active and accountable stewardship form an integral part of the legal duties of investors ~~to be reflected through~~and that an account of stewardship activities be made available to beneficiaries and public through, inter alia, the disclosure of major holdings, engagement activities, the use of proxy advisers and the use of passive investment vehicles;

Amendment 217 #

Motion for a resolution
Paragraph 12

12. Asks that stewardship and consideration of ESG factors form an integral part of the legal duties of investors to be reflected through disclosure of major holdings, engagement activities, the use of proxy advisers and the use of passive investment vehicles;

Amendment 218 #

Paul TANG

Motion for a resolution
Paragraph 12

12. Asks that stewardship form an integral part of the legal duties of investors to be reflected through public and mandatory disclosure of major holdings, engagement activities, the use of proxy advisers and the use of passive investment vehicles;

Amendment 219 #

Motion for a resolution
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 22 #

Motion for a resolution
Citation 31 a (new)

- having regard to the European Investment Bank (EIB) extensive experience on green bonds through mainly the Climate Awareness Bond, which contributed to green bonds of 18 billion Euro and 160 projects related to renewable energy, which unfortunately were distributed regionally in an uneven way without the appropriate long-term and regionally balanced planning.

Amendment 220 #

Motion for a resolution
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 221 #

Motion for a resolution
Paragraph 13

~~13.~~ Notes the lack of a robust, reliable ~~13.~~ and uniform definition for reporting in the framework of the NFRD and the need to define the most strategic ESG metrics for each sector or sub-sector; calls on the Commission to create EU-wide multi- stakeholder groups (including officials, academics and civil society) to establish a list of metrics covering the most significant sustainability risks as part of a pilot project on this matter; requires that they should include a second party review and should include independent third-party assurance and accreditation;

Amendment 222 #

Motion for a resolution
Paragraph 13

13. Notes the lack of a robust, reliable and uniform definition for reporting in the framework of the NFRD and the need to define the most strategic ESG metrics ~~for each sector or sub-sec~~using sustainability indicators; calls on the Commission to create EU-wide multi- stakeholder groups to establish a list of metrics covering the most significant sustainability risks and a list of indicators measuring the sustainability impact as part of a pilot project on this matter;

Amendment 223 #

Motion for a resolution
Paragraph 13

13. Notes ~~the lack of a robust, reliable and uniform definition for~~an 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 secto~~for an enhanced harmonization with the aim to foster mor ~~sub-sector~~e consistency; calls on the Commission to create EU-wide multi- stakeholder groups to ~~establish a~~assess 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 224 #

Motion for a resolution
Paragraph 13

13. Notes the lack of a robust, reliable and uniform definition for reporting in the framework of the NFRD and the need to define the most strategic ESG metrics for each sector or sub-sector; calls on the Commission to ~~create EU-wide multi- stakeholder groups to~~ establish a list of metrics covering the most significant sustainability risks as part of a pilot project on this matter;

Amendment 225 #

Motion for a resolution
Paragraph 13

13. Notes the lack of a robust, reliable and uniform definition for reporting in the framework of the NFRD and the need to define the most strat~~egic~~ional ESG metrics for each sector or sub-sector; calls on the Commission to create EU-wide multi- stakeholder groups to establish a list of metrics covering the most significant sustainability risks as part of a pilot project on this matter;

Amendment 226 #

Motion for a resolution
Paragraph 13

13. Notes the ~~lack of a robust, reliable and uniform definition for reporting~~room for improvement in the framework of the NFRD and the need to define the most strategic ESG metrics for each sector or sub-sector; calls on the Commission to create EU-wide multi- stakeholder groups to establish a list of metrics covering the most significant sustainability risks for each industry as part of a pilot project on this matter;

Amendment 227 #

Hugues BAYET

Motion for a resolution
Paragraph 13 a (new)

13a. Calls for a major long-term investment plan, entitled 'EUR 1000 billion for the climate and employment', to be drawn up at EU level to complement the EFSI, fund massive investment in measures to cut greenhouse gas emissions, renewable energies, energy saving, the insulation of buildings, green mobility, the training of workers and measures to combat inequality;

Amendment 228 #

Motion for a resolution
Paragraph 13 a (new)

13a. Calls on national banking and financial market authorities to draw up clear and concise instructions on how the new classification system and other changes associated with this legislation can be implemented without this generating unavoidable costs and delays;

Amendment 229 #

Lieve WIERINCK, Caroline NAGTEGAAL, Ramon TREMOSA i BALCELLS, Thierry CORNILLET

Motion for a resolution
Paragraph 14

14. Notes that green bonds represent only a tiny fraction of the investment market and one that is poorly regulated and where information is weak and subject to green-washing; notes in this regard the urgent need for a uniform standard for green bonds; insists that such green bonds should be verified and supervised by public authorities; and 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 nor breach core social and human rights; suggests that the development of the standard for an EU green bond should take place in full transparency with a specific Commission working group subject to scrutiny by the European Parliament;

Amendment 23 #

Motion for a resolution
Citation 32

— having regard to the ~~Bankwatch Network briefing of May 2017~~European Investment Bank (EIB) 2016 Statistical Report, which ~~found~~shows that ~~in 16 EU Member States European Investment Bank (EIB) support for climate action~~EIB support for climate action continues to reflect the different market contexts across the EU and did not reach ~~even~~ the level of 20 % in 16 EU Member States in 2016, and that while climate action investment in 2016 was predominantly located in the EU’s stronger economies, with 70 % of European Fund for Strategic Investments (EFSI) support for renewable energy being concentrated in Belgium, while 80 % of energy efficiency investment through the EFSI was allocated to France, Finland and Germany,the EIB financed renewable energy and energy efficiency projects in 18 Member States in 20161a; _________________ 1aEuropean Investment Bank 2016 Statistical Report, 27.04.2017.

Amendment 230 #

Motion for a resolution
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 231 #

Motion for a resolution
Paragraph 14

Amendment 232 #

Motion for a resolution
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; Calls on the European Commission to regularly assess the impact, effectiveness and supervision of the green bonds in relation to the EU’s climate and environmental policies and commitments;

Amendment 233 #

Dariusz ROSATI

Motion for a resolution
Paragraph 14

14. Notes the ~~urgent~~ need for a uniform standard for green bonds; ~~insist~~underlines that ~~such~~ green bonds should ~~include periodic reporting on the environmental impacts of the underlying assets; und~~also furtherl inves ~~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~~tigate negative criteria;

Amendment 234 #

Motion for a resolution
Paragraph 14

Amendment 235 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Thierry CORNILLET

Motion for a resolution
Paragraph 14

Amendment 236 #

Motion for a resolution
Paragraph 14

Amendment 237 #

Motion for a resolution
Paragraph 14

Amendment 238 #

Motion for a resolution
Paragraph 14

14. Notes the urgent need for a uniform minimum 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;

Amendment 239 #

14. Notes th~~e urgent need for a uniform~~at selective standards for green bonds should be developed; 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~~supports decrease of use of fossil fuel asset, and nuclear power ~~or investment in aviation infrastructure~~;

Amendment 24 #

Simona BONAFÈ, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
Citation 32

— having regard to the Bankwatch Network briefing of May 2017 which found that in 16 EU Member States European Investment Bank (EIB) support for climate action did not reach ~~even~~ the level of 20 % and that climate action investment in 2016 was predominantly located in the EU’s stronger economies, with 70 % of European Fund for Strategic Investments (EFSI) support for renewable energy being concentrated in Belgium, while 80 % of energy efficiency investment through the EFSI was allocated to France, Finland and Germany,

Amendment 240 #

Motion for a resolution
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 241 #

Motion for a resolution
Paragraph 14 a (new)

14 a. Upholds that pricing measures can deliver a critical contribution in closing the 180 billion Euro funding gap to deliver Europe’s decarbonisation efforts, by shifting investments towards long-term sustainable goals; highlights that such pricing measures may include a financial transaction tax on high-frequency trading and higher prices and fees for unsustainable investments;

Amendment 242 #

Motion for a resolution
Paragraph 14 a (new)

14 a. Notes that SMEs are often forgotten in discussions concerning sustainable finance, despite their innovative nature; notes in this context the vast potential of digitalisation and green Fintech; recommends that the Commission considers mechanisms to enable SMEs to bundle projects in order to allow them access to the green bond market;

Amendment 243 #

Simona BONAFÈ, Paul TANG, Pervenche BERÈS, Renato SORU, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
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 244 #

Motion for a resolution
Paragraph 14 a (new)

14 a. Highlights that, beyond green bonds, social bonds need to be developed and encouraged as a tool to fill the gap in investment in social infrastructure within the European Union; asks that they meet criteria akin to those of the green bonds;

Amendment 245 #

Motion for a resolution
Paragraph 14 a (new)

14 a. Encourages the creation of a proactive green credit guidance, which already exists in some member-states, with well-defined rules of the minimum percentage allocated to renewable energy;

Amendment 246 #

Motion for a resolution
Paragraph 15

15. Notes that existing credit-rating agencies do not integrate the influence of disruptive ESG trends in issuers’ future credit-worthiness; calls for clear EU standards and supervision regarding the integration of ESG factors in ratings for all credit-rating agencies operating in the EU; calls for the establishment of an accreditation process for a ‘Green Finance Mark’ by certifying agents supervised by the European Securities and Markets Authority (ESMA);deleted

Amendment 247 #

Motion for a resolution
Paragraph 15

15. Notes that existing credit-rating agencies (CRAs) do not integrate the influence of disruptive ESG ~~trend~~risks an factors in issuers’ future credit-worthiness; calls for clear EU standards and supervision regarding the integration of ESG factors in ratings for all credit-rating agencies operating in the EU; recalls that the financial crisis of 2008 was not anticipated by the big three CRAs and warns that the underlying reasons of oligopoly and a narrow economic focus of these firms are still not fully addressed, which makes current CRAs unfit to flag emerging long-term sustainability risks; recalls therefore the need to create a European public credit rating agency which is inter alia designed to track long- term sustainability risks; calls for the establishment of an accreditation process for a ‘Green Finance Mark’ by certifying agents supervised by the European Securities and Markets Authority (ESMA); calls for ESMA to receive a clear mandate to require, monitor and give guidelines to CRAs to incorporate sustainability risks in their methodologies;

Amendment 248 #

Motion for a resolution
Paragraph 15

15. Notes that existing credit-rating agencies do not sufficiently integrate the i~~nfluence~~mpact of disruptive ESG trends in issuers’ future credit-worthiness; calls for ~~clear EU standards and supervision regarding~~, over, the integration of ESG ~~fac~~indicators in ratings for all credit-rating agencies operating in the EU; ~~calls for the establishment of an accreditation process for a ‘Green Finance Mark’ by certifying agents supervised by the European Securities and Markets Authority (ESMA);~~

Amendment 249 #

Simona BONAFÈ, Renato SORU, Andrea COZZOLINO, Luigi MORGANO

Motion for a resolution
Paragraph 15

15. Notes that existing credit-rating agencies do not integrate the influence of disruptive ESG trends in issuers’ future credit-worthiness; calls for clear EU standards and supervision regarding the integration of ESG factors in ratings for all credit-rating agencies operating in the EU; ~~calls for the establishment of an accreditation process for a ‘Green Finance Mark’ by certifying agents supervised by the European Securities and Markets Authority (ESMA);~~

Amendment 25 #

Motion for a resolution
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 250 #

Motion for a resolution
Paragraph 15

15. Notes that existing credit-rating agencies do not integrate the influence of disruptive ESG trends in issuers’ future credit-worthiness; calls for clear EU standards and supervision regarding the integration of ESG factors in ratings for all credit-rating agencies operating in the EU to be further specified by ESMA; calls for the establishment of an accreditation process for a ‘Green Finance Mark’ by certifying agents supervised by the European Securities and Markets Authority (ESMA); requests, in this regard, the Commission to put forward a revision of the CRA Regulation;

Amendment 251 #

Motion for a resolution
Paragraph 15

15. Notes that existing credit-rating agencies do not fully integrate the influence of disruptive ESG trends in issuers’ future credit-worthiness; calls for clear EU standards and supervision regarding the integration of ESG factors in ratings for all credit-rating agencies operating in the EU; calls for the establishment of an accreditation process for a ‘Green Finance Mark’ by certifying agents supervised by the European Securities and Markets Authority (ESMA);

Amendment 252 #

Motion for a resolution
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 253 #

Motion for a resolution
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;deleted

Amendment 254 #

Motion for a resolution
Paragraph 16

Amendment 255 #

Motion for a resolution
Paragraph 16

Amendment 256 #

Motion for a resolution
Paragraph 16

16. Calls on the Commission to establish a ~~legally binding labelling system~~n ESG label system, based on best practices from Member States, such as LuxFlag, FNG, Climetrics, SEImetrics and TEEC, available for personal bank accounts, investment funds, insurance, and financial products indicating their level of conformity with the Paris Agreement and ESG goals;

Amendment 257 #

Paul TANG

Motion for a resolution
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 the~~ir level of~~ extent to which underlying assets are inconformity with the Paris Agreement and ESG goals;

Amendment 258 #

Anne SANDER

Motion for a resolution
Paragraph 16

16. Calls on the Commission to establish a ~~legally binding~~s a first step a voluntary 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 259 #

Motion for a resolution
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 26 #

Motion for a resolution
Citation 32 a (new)

- having regard to the European Parliament Resolution of 8 February 2018 on the Annual Report on the Financial Activities of the European Investment Bank,

Amendment 260 #

Motion for a resolution
Paragraph 16

Amendment 261 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Thierry CORNILLET

Motion for a resolution
Paragraph 16

16. Calls on the Commission to establish a ~~legally binding~~voluntary 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 262 #

Motion for a resolution
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 263 #

Romana TOMC

Motion for a resolution
Paragraph 16

Amendment 264 #

Motion for a resolution
Paragraph 16 a (new)

16 a. Emphasises that the identification, management and disclosure of environmental, social and governance risks are integral parts of consumer protection and financial stability and should thus fall under the mandate of the supervisory duties of the ESAs; asks the ESRB to actively pursue research on the interplay of ESG factors and systemic risk, beyond climate change;

Amendment 265 #

Motion for a resolution
Paragraph 16 a (new)

16 a. Recalls that Parliament has called for the introduction of an EU savings account for the financing of the green economy in its Resolution of 20 October 2017 on the Action Plan on Retail Financial Services;

Amendment 266 #

Motion for a resolution
Paragraph 16 b (new)

16 b. Asks the Commission to put forward a proposal for the creation of an 'EU savings account' in order to unlock long-term financing and support ecological transition in Europe;

Amendment 267 #

Motion for a resolution
Paragraph 16 c (new)

16 c. Considers that the EU savings account could be managed by the EIB;

Amendment 268 #

Motion for a resolution
Paragraph 17

17. I~~ntends to further clarify~~s concerned at the proposal to change the mandate of the ESAs sto ~~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 recommendationsaspects, thereby distracting from their core mandate of ensuring financial stability;

Amendment 269 #

Motion for a resolution
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’ gui~~Underlines that the ESAs should take account of risks related to environmental, social and governance factors when carrying out their tasks, thereby rendelrin~~es to include ESG issues and on the thre~~g 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;

Amendment 27 #

Motion for a resolution
Citation 32 b (new)

- having regard to the European Parliament resolution of 6 February 2018 on the European Central Bank Annual Report for 2016,

Amendment 270 #

Motion for a resolution
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 and alignment with international standards on climate action, including the Paris Agreement;

Amendment 271 #

Romana TOMC

Motion for a resolution
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;~~

Amendment 272 #

Motion for a resolution
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; encourages ESAs to enforce coordination with relevant agencies and international organisations;

Amendment 273 #

Motion for a resolution
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 274 #

Motion for a resolution
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~~and of National Competent Authorities to monitor ESG ris~~sues and on the three ESAs to introduce a monitoring system to assess material ESG risk~~ks; points to the pending revision of the ESAs breg~~inning in 2018 and with a forward-looking climate scenario analysis; favours the~~ulations including the potential appropriateness of an extension of the ESAs’ mandate to include checking portfolio alignment with the Paris Agreement and to ensure consistency with the TCFD recommendations;

Amendment 275 #

Paul TANG

Motion for a resolution
Paragraph 17

17. Intends to further clarify the mandate of the ESAs so that it includes ESG risks and factors; calls on ESMA to update its ‘suitability’ guidelines to include ESG issues and on the three ESAs to introduce a mandatory monitoring system to assess material ESG risks and factors beginning in 2018 and with a forward- looking ~~climate~~sustainability scenario analysis; favours the extension of the ESAs’ mandate to include checking portfolio alignment with the Paris Agreement and ESG risks and factors and to ensure consistency with the TCFD recommendations;

Amendment 276 #

Motion for a resolution
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 supervisory 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;

Amendment 277 #

Motion for a resolution
Paragraph 17 a (new)

17 a. Acknowledges that there is a widespread deficit in sustainable-finance- related project development capacity in the EU; recommends therefore the establishment of an EU Observatory on Sustainable Finance to provide the institutional capacity to oversee the development of green and sustainable taxonomies and labels;

Amendment 278 #

Motion for a resolution
Paragraph 17 b (new)

17 b. Demands that all future EU spending must be Paris-compatible with objectives relating to the decarbonisation of the economy being included in the legal instruments regulating the operation of European Structural and Investment Funds (including cohesion funds), the funds for external action and development cooperation and other instruments outside the Multiannual Financial Framework such as the European Fund for Strategic Investments (EFSI);

Amendment 279 #

Motion for a resolution
Paragraph 17 c (new)

17 c. Calls on the Commission to conduct a feasibility study into how supervisors and regulation might better reward mandates that include long term perspectives;

Amendment 28 #

Motion for a resolution
Citation 32 c (new)

- having regard to the European Parliament Resolution of 20 October 2017 on the Action Plan on Retail Financial Services,

Amendment 280 #

Motion for a resolution
Paragraph 17 d (new)

17 d. Calls on EIOPA to provide best practice and guidelines on how providers of occupational pension schemes and private pension products engage with beneficiaries pre-contractually and throughout the life of the investment; calls on EIOPA to provide guidelines on best practice, such as the UK Environmental Agency Fund, for engaging with beneficiaries and retail clients and ascertaining their financial and non-financial interests;

Amendment 281 #

Motion for a resolution
Paragraph 18

~~18. 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;~~deleted

Amendment 282 #

Motion for a resolution
Paragraph 18

18. 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~~is the largest multilateral financier of climate action policy; notes that total climate action financed in 2012-2016 by the EIB was in excess of 90 billion Euro; notes that EIB climate action finance in 2016 represented over 26 % of overall EIB financing; notes that EIB energy lending focuses energy efficiency, renewable energy, energy networks, as well as related research and innovation; notes that EIB lending for renewable energy reached nearly 4 billion Euro in 2016; considers that though the EIB is on track concerning its commitment to the financing of climate action programs, this institution should continue to provide and further enhance lending for the transition to a low-carbon and climate-resilient economy, in line with EU policy objectives, including the respect of the 1.5 °C climate limit;

Amendment 283 #

Motion for a resolution
Paragraph 18

18. 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; advises that the EIB is in a position to provide more risk capital for the green transition; is of the opinion that further measures should be undertaken with that perspective, including inter alia, in interaction with EU financial instruments in the next Multiannual Financial Framework;

Amendment 284 #

Motion for a resolution
Paragraph 18

18. 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 and calls the EIB to redesign its programme planning in a more balanced way, both environmentally and regionally, to enforce climate actions and social and regional convergence always within a context of respect to working rights while having a positive environmental and social impacts;

Amendment 285 #

Lieve WIERINCK, Caroline NAGTEGAAL, Thierry CORNILLET

Motion for a resolution
Paragraph 18

18. ~~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~~Acknowledging that 26% of the overall EIB financing has targeted climate action, calls on the EIB lending and the EFSI regulation to be strengthened so that only operations that promote resource efficient and decarbonising projects are financed;

Amendment 286 #

Motion for a resolution
Paragraph 18

18. Notes that the EIB ~~has a mixed record~~is well on track concerning its commitment to the financing onf climate action~~; insists that the EIB should only agree to future lending that is compatible with a 1.5 °C climate limit;~~, exceeding its overall target of 25% in 20162a; calls on the EIB to continue supporting through its future lending the transition to a low- carbon and climate-resilient economy that is in line with EU policy objectives; _________________ 2aEIB Group 2016 Sustainability Report, 15.06.2017, p. 24.

Amendment 287 #

Motion for a resolution
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 288 #

Motion for a resolution
Paragraph 18

18. ~~Not~~Urges ~~that~~ the EIB ~~has a mixed record on climate action; insists that the EIB should only agree to~~to adapt its future lending ~~that is~~as to be compatible with a 1.5 °C climate limit;

Amendment 289 #

Motion for a resolution
Paragraph 18

18. Notes that the EIB has a mixed record on climate action; ~~insists~~calls on that the EIB should con~~ly agree to~~sider for future lending to give more priority to projects that isare compatible with a 1.5 °C climate limit;

Amendment 29 #

Motion for a resolution
Citation 32 d (new)

- having regard to the EIB Investment Report 2017/2018,

Amendment 290 #

Motion for a resolution
Paragraph 18 a (new)

18 a. Notes that the EIB pioneered the Green Bond market in 2007 by issuing the world’s first green bond, branded as “Climate Awareness Bond” (CAB). Since then the EU Bank has issued EUR 21.3 billion in green bonds across 11 currencies, making the EIB the world’s largest issuer of green bonds as of 19 February 2018; notes that proceeds from EIB’s green bonds are earmarked for investments in energy efficiency and renewable energy projects, in line with EU policy objectives; notes that the EIB also contributes to the Green Bond market development by actively participating in the market’s governance, notably through the Green Bond Principles, which support transparency and accountability; notes that the EIB has chaired the Green Bond Principles framework since 2015;

Amendment 291 #

Motion for a resolution
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 292 #

Motion for a resolution
Paragraph 18 a (new)

18 a. Recommends that the EIB work with small market participants and community cooperatives to undertake bundling of small-scale renewable energy projects to enable them to be eligible for EIB funding and as part of the CSPP programme;

Amendment 293 #

Motion for a resolution
Paragraph 18 a (new)

18a. Proposes that the EIB should offer a minorist tranche in its green bond issues;

Amendment 294 #

Motion for a resolution
Paragraph 18 b (new)

18 b. Demands that the EIB ensures that at least a third of its board members have active experience in the field of sustainable finance;

Amendment 295 #

Motion for a resolution
Paragraph 18 b (new)

18 b. Asks the EIB to use the '"Green" label when issuing Project Bonds for the financing of ecological investments;

Amendment 296 #

Motion for a resolution
Paragraph 18 c (new)

18 c. Notes the key role played by the Bio-Based Industries Joint Undertaking (BBI-JU) in the financing and development of bio-based industries, which are fundamental for the decarbonisation of the economy; welcomes the commitment of 0.5 billion Euro by BBI-JU over the 2014-2016 period to operational programs, including demonstration and flagships projects, such as bio-refineries;

Amendment 297 #

Motion for a resolution
Paragraph 18 c (new)

18 c. Supports the recommendation made by the HLEG group to establish a ‘Sustainable Infrastructure Europe’ facility to expand the size and quality of the EU pipeline of sustainable assets; notes that the Commission should pay attention to possible gender biases inherent in infrastructure projects and should ensure not to neglect investments in social infrastructure;

Amendment 298 #

Motion for a resolution
Paragraph 18 d (new)

18 d. Concurs with the HLEG group that it is of paramount importance to empower and connect Europe’s citizens with sustainable finance issues; underlines the need of improving access to information on sustainability performance and promoting financial literacy;

Amendment 299 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Thierry CORNILLET

Motion for a resolution
Paragraph 18 d (new)

18 d. Highlights the importance of sufficient financing for bio-based industries; calls on the EIB to provide additional lending to sound, well-rated projects that do not receive funding from the Bio-Based Industries Joint Undertaking;

Amendment 3 #

Motion for a resolution
Citation 3 a (new)

- having regard to the HLEG final report of January 2018 entitled ‘Financing a Sustainable European Economy’,

Amendment 30 #

Motion for a resolution
Citation 32 e (new)

- having regard to the EU Bioeconomy Strategy adopted and launched on 13 February 2012,

Amendment 300 #

Motion for a resolution
Paragraph 18 e (new)

18 e. Asks the Commission to put forward a review of Regulation1606/2002 on accounting rules with a view to including in the definition of European Public Good sustainability and long-term investment objectives;

Amendment 301 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL, Thierry CORNILLET

Motion for a resolution
Paragraph 19

Amendment 302 #

Motion for a resolution
Paragraph 19

Amendment 303 #

Paul TANG, Simona BONAFÈ, Neena GILL

Motion for a resolution
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 304 #

Esther DE LANGE

Motion for a resolution
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 eUnderlines the independence of the ECB and the necessity thereof, but suggests the ECB follows an overall investment policy in line with the Paris Agreement and ESG goals; reiterates that the only mandate of the ECB is price stabili~~shing a future sustainabi~~ty: safeguarding the value of the Euro; stresses that this is the best contribution monetary politcy ~~taxonomy~~can make to sustainable economic growth;

Amendment 305 #

Motion for a resolution
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; being also more transparent, given that up to date ECB programmes benefited mainly big corporations with at least questionable environmental approaches; underlines that such redesign may act as a pilot for establishing a future sustainability taxonomy;

Amendment 306 #

Motion for a resolution
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 307 #

Motion for a resolution
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 Believes that the ECB's purchase programmes, which are to be phased out, should not favour specific sectors and should in any case a ~~pilot for establishing a future sustainability taxonomy~~void market distortions;

Amendment 308 #

Motion for a resolution
Paragraph 19

19. CRecalls that the ECB as an EU Institution is also bound by the Paris Agreement; 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;

Amendment 309 #

Siegfried MUREŞAN

Motion for a resolution
Paragraph 19

19. ~~Calls on~~Proposes to the ECB to ~~redesign~~adjust 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~~, while fully ensuring the monetary policy effectiveness of the CSPP, as defined in the eligibility criteria of the CSPP, and while avoiding undue distortions or level-playing field concerns;

Amendment 31 #

Motion for a resolution
Citation 32 f (new)

- Having regard to the Review of the 2012 European Bioeconomy Strategy of November 2017;

Amendment 310 #

Motion for a resolution
Paragraph 19

19. Calls on the ECB to redesign urgently 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 and reports back to the European Parliament on this; underlines that such redesign may act as a pilot for establishing a future sustainability taxonomy;

Amendment 311 #

Motion for a resolution
Paragraph 19 a (new)

19 a. Calls on the Commission and Member States to ensure policy coherence with financial and non-financial sectors; Reminds that sustainable financial policy needs to be accompanied by coherent policy choices in other sectors such as energy, transport, industry, and agriculture.

Amendment 312 #

Motion for a resolution
Paragraph 19 a (new)

19 a. Calls on the Commission to publish a regular progress report on the issues covered in this report;

Amendment 313 #

Motion for a resolution
Paragraph 19 a (new)

19 a. Recalls that the primary objective of the ECB's monetary policy is to maintain price stability;

Amendment 314 #

Motion for a resolution
Paragraph 19 b (new)

19 b. Calls on the Commission and Member States to use the EU’s influence to demonstrate leadership on sustainable finance and raise sustainability standards in finance at the global level, including through bilateral agreements with third countries, at multilateral political fora such as the UN, G7 and G20 and in international standard-setters such as the International Organization of Securities Commissions (IOSCO);

Amendment 315 #

Jörg MEUTHEN

Motion for a resolution
Paragraph 20

20. Instructs its President not to forward this resolution to the Council and the Commission.

Amendment 32 #

Motion for a resolution
Citation 32 g (new)

- having regard to the European Parliament Resolution of 14 June 2013 on innovating for sustainable growth: a bioeconomy for Europe,

Amendment 33 #

Motion for a resolution
Citation 32 h (new)

- having regard to the European Investment Bank (EIB) 2016 Statistical Report, which shows that EIB support for climate action continues to reflect the different market contexts across the EU and that the EIB financed renewable energy projects in 11 Member States and energy efficiency projects in 18 Member States in 2016,

Amendment 34 #

Motion for a resolution
Citation 32 i (new)

- having regard to the Interim Evaluation of the Bio-based Industries Joint Undertaking (2014-2016) operating under Horizon 2020 of June 2017,

Amendment 35 #

Motion for a resolution
Citation 32 j (new)

- having regard to the Council Regulation (EU) No 560/2014 of 6 May 2014 establishing the Bio-based Industries Joint Undertaking,

Amendment 36 #

Motion for a resolution
Citation 32 k (new)

- having regard to the European Parliament Resolution of 5 February 2014 on the proposal for a Council regulation on the Bio-based Industries Joint Undertaking,

Amendment 37 #

Motion for a resolution
Citation 34 a (new)

- having regard to the European Commission Circular Economy Package of 2015 and the European Parliament Resolution of 9 July2015 on resource efficiency: moving towards a circular economy (2014/2208(INI)),

Amendment 38 #

Motion for a resolution
Citation 34 a (new)

- having regard to the UN Guiding Principles on Business and Human Rights and the responsibility to Protect, Respect and Remedy,

Amendment 39 #

Motion for a resolution
Citation 34 b (new)

- having regard to the UN Agenda 2030 and the Sustainable Development Goals,

Amendment 4 #

Motion for a resolution
Citation 4

— having regard to ~~page 14 of~~ the HLEG fin~~terim~~al 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 40 #

Motion for a resolution
Citation 34 c (new)

- having regard to the Sendai Framework for Disaster Risk Reduction and ‘Priority 3: Investing in disaster risk reduction for resilience’ including Article 30 (m) to ‘to promote, as appropriate, the integration of disaster risk reduction considerations and measures in financial and fiscal instruments,

Amendment 41 #

Motion for a resolution
Citation 34 d (new)

- having regard to the UNISDR and CRED report entitled The Human Cost of Weather Related Disasters,

Amendment 42 #

Motion for a resolution
Recital A

A. whereas the power of finance can and should be used to facilitate the transition to a sustainable economy in the EU which extends beyond the climate transition ~~into other areas of ecological crisi~~and ecological issues and also concerns social and governance issues;

Amendment 43 #

Motion for a resolution
Recital A

A. whereas the power of finance can and should be used to facilitate the transition to a sustainable economy in the EU which ~~extends beyond the climate transition into other areas of ecological crisi~~also includes the financing of rural and (former) industrial areas with the contribution of local banks;

Amendment 44 #

A. whereas the power of finance can and should be used to facilitate the transition to a sustainable economy in the EU which extends beyond the climate transition into other areas of e~~cological~~nvironmental, social and governance crisis;

Amendment 45 #

Motion for a resolution
Recital A

A. whereas ~~the power of finance can and should be used to~~financial markets can and should play a vital role in facilitateing the transition to a sustainable economy in the EU which extends beyond the climate transition into other areas of ecological crisis;

Amendment 46 #

Renato SORU, Simona BONAFÈ, Luigi MORGANO, Andrea COZZOLINO

Motion for a resolution
Recital A

Amendment 47 #

Hugues BAYET

Motion for a resolution
Recital A a (new)

Aa. whereas the environmental challenge, the economic challenge and the social challenge are closely bound up with one another; whereas the environmental transition must act as an incentive to enhance solidarity and cohesion;

Amendment 48 #

Motion for a resolution
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 49 #

Motion for a resolution
Recital B a (new)

Ba. whereas sustainable financing must at the same time take into account a number of market failures, such as (1) negative externalities affecting the environment, (2) the systemic risk to financial and capital markets (lying in the possibility that the buck may stop with the taxpayer once the entire financial sector is threatened), (3) society's need to fund investment in clean energy and green solutions (based on the positive externalities of innovation, which mean that their funding is too low), and (4) the lack of funding due to asymmetric information;

Amendment 5 #

Motion for a resolution
Citation 5

— having regard to the fact that prudential frameworks, in particular Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), and accounting rules for investors discourage a long-term approach, and that prudential rules require a level of capital proportional to the level of risk over a one-year horizon and only take financial risk into consideration for the calculation of capital requirements,deleted

Amendment 50 #

Motion for a resolution
Recital B a (new)

B a. Whereas the objective of capital requirements is to maintain financial stability by encouraging proper risk management; whereas capital requirements should reflect the risks inherent in investments; whereas capital requirements should therefore not be used to encourage green investments;

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)

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 53 #

Motion for a resolution
Recital B a (new)

B a. whereas the notion of profitability is focussed on short-term returns and sustainable investments would profit from a more long-term perspective;

Amendment 54 #

Paul TANG, Simona BONAFÈ, Neena GILL

Motion for a resolution
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 55 #

Motion for a resolution
Recital B b (new)

B b. whereas institutional and retail investors are showing increased interest in investing in products observing ESG criteria;

Amendment 56 #

Motion for a resolution
Recital B c (new)

B c. whereas increased transparency of ESG-related data on companies is needed to prevent "green-washing";

Amendment 57 #

Motion for a resolution
Recital B d (new)

B d. whereas criteria on climate- mitigating investments seem most advanced and can be a good starting point, sustainable finance goes beyond climate and green investments and should quickly also take social and governance criteria on board;

Amendment 58 #

Motion for a resolution
Recital B e (new)

B e. whereas impact evaluation should be part of the taxonomy of sustainable financial products; whereas there is a growing expertise in how to calculate the impact of investments on ESG goals;

Amendment 59 #

Motion for a resolution
Paragraph 1

1. Stresses the potential of a faster ~~green~~sustainable 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 6 #

Motion for a resolution
Citation 7 a (new)

- having regard to the Luxembourg- EIB Climate Finance Platform established in September 2016,

Amendment 60 #

Motion for a resolution
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 ~~are~~may not be adequately reflected in prices and that this could provide~~s a~~ market ~~advantage~~incentives to unsustainable and short-term~~ist 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 61 #

Motion for a resolution
Paragraph 1

1. Stresses the ~~potential of~~limited possibilities presented by a faster green transition ~~as an opportunity for~~in order to orient~~ing~~ capital markets towards long- term, innovative and efficient investments~~; notes that environmental, social and governance (ESG) benefits and risks are not reflected~~, because of which they should be fully introduced; notes that the best way to take into account environmental, social and governance (ESG) benefits and risks is, on the basis of environmental and other policies, to incorporate them directly into prices and ~~that this~~asset values; since this is mostly not being done, the current situation provides a market advantage to unsustainable and short-termist geared finance; stresses that a political and regulatory framework to govern sustainable finance is overdue;

Amendment 62 #

Doru-Claudian FRUNZULICĂ

Motion for a resolution
Paragraph 1

1. SRecalls the need to improve the contribution of finance to sustainable and inclusive growth and to accelerate the shift to a low-carbon and resource efficient economy; 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 are not reflected in prices and that this provides a market advantage to unsustainable and short-termist geared finance; stresses that a political and regulatory framework to govern sustainable finance is overdue;

Amendment 63 #

Motion for a resolution
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 are not reflected in prices and that this provides a market advantage to unsustainable and short-termist geared finance; stresses that a political and regulatory framework to govern sustainable finance is overdue and urges the Commission to come forward with an ambitious legislative framework;

Amendment 64 #

Motion for a resolution
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 ~~are~~may not be reflected in prices and that this provides a market ~~advantag~~incentive to unsustainable and short-termist geared finance for certain market participants that focus on fast returns; stresses that a political and regulatory framework to govern sustainable finance is overdue;

Amendment 65 #

Motion for a resolution
Paragraph 1

Amendment 66 #

Motion for a resolution
Paragraph 1

1. Stresses the potential of a faster, green and sustainable transition as an opportunity for orienting capital markets and banks towards long- term, innovative, socially friendly and efficient investments; 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 more strict political and regulatory framework to govern sustainable finance is overdue;

Amendment 67 #

Motion for a resolution
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 are often not reflected in prices and that this provides a market advantage to unsustainable and short-termist geared finance for market-participants that focus on fast returns; stresses that a political and regulatory framework to govern sustainable finance is overdue;

Amendment 68 #

Dariusz ROSATI

Motion for a resolution
Paragraph 1

1. Stresses the potential of ~~a faster green transit~~sustainable transition, which takes into account specificity of the EU regions, as an opportunity for orienting capital markets towards long- term, innovative and efficient investments; 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 and regulatory framework to govern sustainable finance is overdue;

Amendment 69 #

Motion for a resolution
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 in order to finance the circular economy; 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 and regulatory framework to govern sustainable finance is overdue;

Amendment 7 #

Motion for a resolution
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 70 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Thierry CORNILLET

Motion for a resolution
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 are not reflected in prices and that this provides a market advantage to unsustainable and short-termist geared finance; stresses that a ~~political an~~well-designed regulatory framework to govern sustainable finance ~~is overd~~could contribute to addressing this issue;

Amendment 71 #

Motion for a resolution
Paragraph 1

Amendment 72 #

Motion for a resolution
Paragraph 1

Amendment 73 #

Renato SORU, Simona BONAFÈ, Luigi MORGANO, Andrea COZZOLINO

Motion for a resolution
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 are not ~~reflec~~always sufficiently integrated into prices ~~and that this provides a market advantage to unsustainable and short-termist geared finance; stresses that a political and regulatory framework to govern~~; emphasises that the current European legal framework does not oppose the development of market-based solutions for sustainable finance ~~is overdue~~products;

Amendment 74 #

Motion for a resolution
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 75 #

Motion for a resolution
Paragraph 1 a (new)

1a. Recalls that private investment in green-economy undertakings was extremely strong before the financial crisis, at a time when oil prices stood at record levels, and that, despite low interest rates, the risks associated with financial markets and economic development are still considered too high on the financial markets for private financing to be channelled sufficiently into long-term sustainable investments;

Amendment 76 #

Motion for a resolution
Paragraph 1 a (new)

1 a. stresses the importance of maintaining a balance between environmental, social and governance (ESG) dimensions of sustainable finance, taking very much into consideration the social dimension by prioritising the fight against social and regional inequalities and poverty, enforcing a real sustainable, environmentally-sensitive and inclusive growth;

Amendment 77 #

Doru-Claudian FRUNZULICĂ

Motion for a resolution
Paragraph 1 a (new)

1 a. Underlines that the financial sector has a critical role to play in the process of accelerating the transition towards a low-carbon, more resource- efficient and sustainable economy;

Amendment 78 #

Motion for a resolution
Paragraph 1 a (new)

1 a. Considers that more financial resources should be directed to investments in renewable energy, bio- based industries, ecologic agriculture, and sustainable biofuels;

Amendment 79 #

Motion for a resolution
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 8 #

Motion for a resolution
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 80 #

Motion for a resolution
Paragraph 2

2. ~~Stresses~~Notes that, while supporting sustainable finance is urgently necessary, we should not overlook the fact 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; notes that green-washing of financial products can constitute a risk to market stability; emphasises in that respect the instrumental role of economic, fiscal and monetary policy in fostering sustainable finance by facilitating capital allocation to decarboni~~sed~~zed, disaster resilient 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 81 #

Motion for a resolution
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 emission~~integrating 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 82 #

Doru-Claudian FRUNZULICĂ

Motion for a resolution
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; taking into account environmental, social and governance considerations; emphasises in that respect the instrumental role of economic, fiscal and monetary policy in fostering sustainable finance by facilitating capital allocation, by re-orienting investments towards more sustainable technologies and businesses, 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 83 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL

Motion for a resolution
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, which is why it is high time to discontinue the free allocation of greenhouse gas emission allowances and to do away with all support which promotes carbon dioxide emissions;

Amendment 84 #

Motion for a resolution
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~~principle of sustainability; emphasises in that respect the instrumental role of economic, and 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 85 #

Motion for a resolution
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 decarboni~~sed~~zed, disaster resilient 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, correcting current market failure;

Amendment 86 #

Motion for a resolution
Paragraph 2

2. Stresses that the financial sector as a whole and its core function of allocating capital toas efficiently as possible to the benefit of society should be governed by the values of competitiveness, equity and sustainability; emphasises in that respect the instrumental role of economic, and 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 87 #

Motion for a resolution
Paragraph 2

2. Stresses th~~at 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~~e 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 88 #

Motion for a resolution
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; ~~insist~~emphasizes that a substantial price for greenhouse gas emissions is a ~~key~~n important component of a functioning and efficient environmental and social market economy;

Amendment 89 #

Motion for a resolution
Paragraph 2

2. Stresses that the financial sector as a ~~whole and its core function of allocating capital to~~core function should benefit society ~~should~~, must be governed by the values of equity and sustainability and inclusiveness; 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 and Paris Agreement 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 9 #

Pervenche BERÈS

Motion for a resolution
Citation 11 a (new)

- having regard to the report of 2018 by the High-Level Task Force on Investing in Social Infrastructure in Europe entitled 'Boosting Investment in Social Infrastructure in Europe',

Amendment 90 #

Dariusz ROSATI

Motion for a resolution
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~~sustainable 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 91 #

Motion for a resolution
Paragraph 2 a (new)

2 a. Underlines that public investment alone cannot trigger the transition to a decarbonised economy; emphasizes the instrumental role of fiscal and economic policy for providing the right signals and incentives to mobilize private capital into investments that cement a sustainable development model in line with the Paris Agreement and other international and domestic commitments in climate and energy; recalls that the phasing-out of fossil fuel projects and the prioritisation of projects increasing the energy available from renewable sources and energy efficiency measures are necessary for the EU to achieve its commitments under the Paris Agreement;

Amendment 92 #

Motion for a resolution
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 93 #

Motion for a resolution
Paragraph 2 b (new)

2 b. Deplores that the EU is not on track to meet its already modest target for spending on climate-related projects; further regrets that the methodology used in order to track climate-related spending is both contradictory and inconsistent across programmes, allowing for projects with doubtful environmental and climate benefits to qualify as climate-related expenditure;

Amendment 94 #

Motion for a resolution
Paragraph 2 c (new)

2 c. Underlines that the methodology used in order to track climate-related spending leads to inconsistency across programmes, allowing for projects with doubtful environmental and climate benefits to be qualified as climate-related expenditure (e.g. the greening component of CAP);

Amendment 95 #

Motion for a resolution
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 of these assets as essential to the orderly transition to climate-positive investments; recommends the extension of the consideration of stranded assets to include ecological systems fundamental to human life such as the nitrogen cycle and pollination; calls for the introduction of ‘carbon stress tests’ for banks and other financial intermediaries to determine the risks related to such stranded assets; calls on EBA to develop standards on how to assess carbon-related risks, disclose them and include them in the bank-internal risk assessment process; notes that the concept of ‘stranded assets’ is invaluable in connecting climate risks to financial incentives; recommends, in view of the multi-faceted nature of the ecological crisis, that this concept is extended to encompass other existential risks, such as, to our food and water supply.

Amendment 96 #

Paul TANG, Simona BONAFÈ, Pervenche BERÈS, Neena GILL

Motion for a resolution
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 97 #

Motion for a resolution
Paragraph 3

3. Emphasises th~~e massive systemic risks that~~at, although value is still attached to carbon investment on the balance sheets of undertakings, the situation may be different in the future, once the transition to a low-carbon society has been achieved; after the transition, stranded carbon assets may represent ~~to financial stability~~a massive systemic risk to financial stability if undertakings and financial institutions do not wake up to the situation in time; stresses the need for the identification and mandatory reporting of these 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;

Amendment 98 #

Motion for a resolution
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 99 #