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Eurosif Newsletter - September 2024
 
Sustainable Finance News
 
EC President names candidates for College of Commissioners
On 17 September, Ursula von der Leyen, President of the European Commission, unveiled her proposed candidates for the new College of EU Commissioners, alongside their expected portfolios and mission letters. Maria Luis Albuquerque has been put forward as Commissioner-designate for Financial Services and the Savings and Investments Union.
 
In her mission letter, President von der Leyen highlights the importance of scaling-up EU sustainable finance, including transition finance, a position that Eurosif strongly supports. Eurosif also supports the proposed development of a transparent categorisation mechanism for financial products and services.
 
Sustainable finance is set to play a pivotal role in driving the EU’s economic growth and competitiveness for the coming years. Eurosif will keep engaging with the European Commission to ensure that the EU builds upon its sustainable finance framework, improves its consistency and addresses its gaps. 
 
Next steps:  
  • End-October/early November: Members of the European Parliament will hold hearings to question Commissioner-designates
  • November: the European Parliament will vote to adopt or reject the proposed College of Commissioners
  • December: the European Commission will be up and running in December at the earliest
Find more information on Commissioner-designates and their mission letters here.
Find Eurosif proposals on a categorisation of financial products under SFDR here.
 
Eurosif reacts to Draghi Report
The report, published on 9 September by Mario Draghi, former President of the European Central Bank and former Italian Prime Minister, emphasises the urgent need for Europe to boost its economic growth and competitiveness, while also highlighting that decarbonisation is essential in reaching these objectives. To achieve this, the report provides a clear picture of the current EU investment gap, estimated at up to €800 billion annually. A massive leverage of private investments is needed to fill this gap.
 
While the report provides some useful recommendations on the Capital Markets Union (CMU), Eurosif strongly disagrees with how it presents EU sustainable corporate reporting and due diligence rules as “regulatory burdens”. This disregards their essential role in advancing industrial decarbonisation and scaling up investments for the transition to a sustainable economy.
 
Eurosif supports clarity, consistency and usability in EU sustainable finance rules; streamlining must not result in deregulation. Directives such as the CSRD and CSDDD must be preserved and duly implemented for the EU to meet its climate targets and scale-up its sustainable growth.
 
More on Eurosif's reaction to the report here.
Find Eurosif’s positions on CSRD/ESRS here.
Find Eurosif’s positions on CSDDD here.
Find the full version of the Draghi Report here.
 
ESMA highlights positive momentum for "transition" funds
In their new TRV Risk Monitor published on 29 August, the European Securities and Markets Authority (ESMA) gives an overview of the key risk drivers in EU financial markets, including greenwashing, which could lead to diminishing trust in green finance and difficulties in financing a sustainable transition.
 
“Transition”-denominated funds attracted twice as much net inflows as investment products using other environmental words in their names over the last two years. Despite the absence of a clear regulatory framework for these “transition”-denominated funds, most of them seem to share similar characteristics.
 
ESMA underlines the potential of credible climate transition plans as forward-looking tools to further channel investments in transitioning firms, and highlight that EU regulations like the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy can help build transparency and trust as they are being phased in.
 
Eurosif supports the establishment of a clear set of objective criteria to define “transition” investment products as part of the upcoming SFDR review, with a link to the implementation of credible, CSRD-aligned transition plans by investee companies.
 
Read the TRV Risk Monitor here.
Read Eurosif’s response to the European Commission consultation on the SFDR review here.
 
EFRAG SR advisory panels: Call for candidates
EFRAG is calling for Civil Society and Impact Investors to apply to join its Sustainability Reporting Financial Institutions Advisory Panels by 15 October.
 
The Panels are tasked with providing input on EU sector-specific sustainability reporting standards for the banking, capital markets and insurance sectors. Desired profiles include citizens of EEA countries with strong technical expertise in ESRS implementation and sustainability reporting within banking, capital markets, or insurance sectors. Knowledge of international reporting initiatives (GRI or ISSB) is appreciated but not required. Eurosif encourages representatives of civil society and impact investors to apply as candidates and contribute to the EU sector-specific sustainability reporting standards for financial institutions.
 
More information on EFRAG's call for candidates here.
Application links:
 
Deloitte 2024 Sustainability Report on Climate Action in Finance - Key insights 
Deloitte's September 2024 sustainability report, gathering insights from over 2100 executives across 27 countries, highlights an increasing focus on sustainability. Key findings demonstrate that businesses are strengthening their climate action efforts and integrating sustainability into core strategies: 
  • 85% of global CxOs (C-suite level business leaders) report increased sustainability investments, up from 75% last year.
  • 70% of executives expect climate change to have a high or very high impact on their operations in the next three years, compared to 61% last year.
  • 92% believe their companies can grow while reducing greenhouse gas emissions, while 90% are confident that economic growth can be achieved alongside climate goals.
However, a majority of the businesses surveyed fall into a “moderate middle" category, positioned between leaders and laggards on corporate climate action.
With 60% of all surveyed executives feeling incentivised to act on climate by their investors and shareholders, this highlights the key role investors can play in accelerating a sustainable shift in these companies and the wider corporate landscape.
 
Read the Deloitte 2024 CxO Sustainability Report here.
 
Corporate sustainability reporting correlates with better social practices
 
On 18 September, the Global Reporting Initiative (GRI) and the World Benchmarking Alliance (WBA) published a report comparing companies’ social sustainability performance with their Sustainability Reporting. They found that companies with a GRI content index achieved at least 47% higher scores on the WBA’s Core Social Indicators compared to those without. 
 
This shows the strong correlation that reporting sustainability disclosures has on companies’ positive social sustainability performance. These positive effects are not limited to the GRI framework - companies with high sustainability scores were also reporting under different disclosure frameworks than the GRI.
Based on this evidence, the report recommends the wider adoption of mandatory sustainability reporting standards to improve companies’ sustainability performance. 
 
Read more of Eurosif's analysis of this report here.
 
New SIF in CEE region: HuSIF
 
September saw the launch of the latest European SIF, the Hungarian Sustainable Investment and Finance Association (HuSIF). The creation of HuSIF is yet another milestone in the growth of the sustainable investment and finance industry in the Central and Eastern European (CEE) region. It follows the establishment of ROSIF, CzechSIF and POLSIF, which were all founded in the last three years.
 
HuSIF aims to support Hungary's investment and financial service providers in promoting the growth of sustainable investments in the country and seeks to bring together and support Hungary's leading investment fund managers, institutional investors, including insurance companies and pension funds, and investment firms committed to sustainability.
 
Visit HuSIF's website here.
Follow HuSIF on LinkedIn here.
 
News from Eurosif
 
We are pleased to welcome Cléa Gobet as our new Administration and Communication Assistant.
 
Cléa recently earned her master's in Public Administration with a specialisation in Economics and Governance from Leiden University, the Netherlands, and holds a bachelor's degree in International Relations from the University of Geneva.
 
Cléa's journey into sustainable finance began with her bachelor's thesis on the impact of partisanship on Carbon Capture and Storage (CCS) technologies in Europe. Her passion for this field has only grown, and she has continued to explore it throughout her academic career. Now she’s eager to apply her knowledge and enthusiasm for this area during her first internship and to help contribute to Eurosif's mission.
Upcoming Events
30 Sep-1 Oct
London
Sustainability Europe 2024
 
Reuters Events: Sustainability Europe 2024 will unite 500+ leaders from across government, corporate and finance to outline how they are driving real action on climate and meeting incoming regulations from the CSRD and the EU Taxonomy to the CSDDD and SFDR. It is imperative that both business and finance come together to understand these new challenges and the opportunities that they present, and Europe is at the forefront of new regulation and incentives to support the transition to a low carbon economy. Eurosif Chair, Nathalie Dogniez, will be speaking at the ‘What’s next for the SFDR and sustainable fund labels’ workshop on 30 September.
 
More information and registration here.
3 Oct
10:00-11:30 CEST
Online
SSF Webinar: Practical challenges for companies in Switzerland implementing the EU's CSRD and ESRS
 
On 3 October, Swiss Sustainable Finance will host a webinar on the objectives and requirements of the CSRD and ESRS, followed by a panel discussion with Swiss practitioners on the implementation challenges for companies in Switzerland. Speakers include Eurosif Senior Policy Adviser, Pierre Garrault, Gabriel Webber Ziero (Senior Legal Council, Swiss Re), Meha Lodha (Deputy Head Corporate Responsibility, Vontobel) and Katja Brunner (Director Legal & Regulatory, SSF). The speakers will be available for a Q&A.
 
Register here.
8-10 Oct
Toronto
PRI In Person 2024
 
PRI in Person will feature expert speakers from across the investment ecosystem and will showcase industry-leading responsible investment practices and debate the impact of emerging ESG issues and global trends within rapidly evolving policy and regulatory landscapes. Eurosif Executive Director, Aleksandra Palinska, will be speaking on the ‘Navigating political cycles. How can we clarify and strengthen the link between RI policy and competitiveness, security and economic resilience, to maintain its support for years to come?’ panel on 8 October.
 
PRI in Person is preceded by the annual meeting of the Global Sustainable Investment Alliance (GSIA), which will also be held in Toronto.
 
More information about PRI in Person here.
10 Oct
11:00-12:00 CEST
Online
Eurosif Policy and Capacity Building webinar
 
On 10 October, Eurosif will host the third in a series of quarterly policy and capacity building webinars exclusively for members of national SIFs that are part of Eurosif.
 
In these sessions, participants can expect to get an overview of recent policy and political developments of relevance to sustainable finance and the different EU regulatory and legislative files as well as to develop capacity to engage positively on related issues. Questions can be asked via the dedicated chat during the webinar and will be answered live by the Eurosif policy team.
 
Find out how you can access our webinars here.
15-17 Oct
Bucharest
Climate Change Summit 2024
 
Climate Change Summit is the largest event in Central and Eastern Europe dedicated to finding innovative solutions for climate change challenges. The 3rd edition of the Summit brings together hundreds of participants, as well as dozens of climate innovation and environmental policy leaders, researchers, entrepreneurs and government officials in conversations about climate change solutions, green economy opportunities and climate action. Eurosif Executive Director, Aleksandra Palinska will be speaking on the ‘ESG as a driver of change in European businesses’ panel on 15 October.
 
More information and registration here.
17 Oct
09:00-12:45 CEST
Brussels
Workshop: EU Paris-aligned and EU Climate Transition benchmarks
 
The EU Platform on Sustainable Finance is holding a workshop to exchange on the successes and shortcomings of the EU Paris-aligned Benchmarks and EU Climate Transition Benchmarks after four years since their entry into application. Aiming to bring together different categories of stakeholders, such as benchmark administrators, asset managers, pension funds, insurance companies and academia, the focus would be on gathering insights about the role that EU Paris-aligned Benchmarks and EU Climate Transition Benchmarks played in promoting sustainable investments.
 
Further information and registration here. This event will also be livestreamed.
24 Oct
10:00-11:30 CEST
Online
Amfori Webinar series: Assessing Risks Under the EU CSDDD: How and How Far in the Chain of Activities?
 
This webinar, tailored to sustainability professionals, compliance officers, and business leaders responsible for overseeing corporate due diligence obligations, will provide practical guidance on understanding the scope of risk analysis and the key factors to consider in ensuring that companies meet their due diligence obligations.
 
Further information and registration here.
24-25 Oct
Prague
EU Taxonomy: Deep Dive - Strategic implications and use in practice
 
The International Sustainable Finance Centre is organising a training course on the EU Taxonomy, evaluating its role and limitations in transition planning. Participants will gain a comprehensive understanding of the six environmental objectives, discuss key performance indicators (KPIs), and leave with a deep understanding of the benefits of activity-level environmental sustainability reporting. In addition to theory, the course will offer practical insights drawn from current market practices and real-world implementation efforts.
 
Further information and registration here.
21-22 Nov
Warsaw
POLSIF Conference: Sustainable Finance Forum
 
POLSIF is organising its first Sustainable Investment Forum, during which key decision-makers shaping the development of sustainable finance in Europe and Poland will discuss how to accelerate the economic transition towards zero emissions. The conference, which will be held at the Warsaw Stock Exchange, will be an excellent opportunity to exchange experiences and get the perspectives of banks, investment companies, brokerage houses, and regulators. Eurosif Executive Director, Aleksandra Palinska, will be among the speakers at this POLSIF forum.
 
Further information can be found on the POLSIF website here.
Eurosif in the Press
News from our SIF network across Europe
 
Publication of the 2024 European Say on Climate report
Continuing its work over the last two years, French SIF has once again joined forces with ADEME to analyse companies' climate strategies submitted to a shareholder vote at their general meetings (AGMs) and has extended the scope of the analysis to European companies (including the UK and Switzerland). The ACT evaluation of non-French SOCs (Say on Climate) was carried out with the help of the World Benchmarking Alliance and the Ethos Foundation.
At the end of this 2024 AGM season, FIR, ADEME, Ethos and WBA have analysed 19 climate plans. Read the complete Say on Climate 2024 report here.
 
13th edition of SRI Weeks returns
The thirteenth edition of the SRI Weeks, promoted by the Italian Sustainable Investment Forum (ItaSIF), will be held from 24 October to 7 November. The SRI Weeks represent Italy's most significant initiative regarding sustainable and responsible investments. Two weeks of meetings and in-depth discussions will explore both the opportunities and challenges associated with ESG finance, with contributions from high-profile speakers in the financial, entrepreneurial, and academic sectors. This year’s programme offers a diverse lineup of events, featuring 12 in-person conferences, alongside nine webinars.
 
During the conferences in Milan (24 October) and Rome (6-7 November), ItaSIF will present new research on sustainable finance in relation to SMEs, insurance companies, banking foundations and pension schemes. Several webinars will cover the latest trends and developments in the sector, including the presentation of the report "Sustainable finance beyond preconceptions 2.0". Other online seminars will focus on new EU and national policies, ESG transfer pricing, and credit and digital solutions. The agenda will also include the annual event of the ESGeneration Italy project, featuring a webinar conducted in English that will offer an opportunity to exchange best practices globally. Further details can be found on the ItaSIF website.
 
Application deadline extended - Call for members: LSFI SAB
The LSFI is looking for members for the LSFI Scientific Advisory Board (SAB), the application deadline has been extended to 30 September.
 
Find more information regarding the LSFI Scientific Advisory Board here.
Access the SAB call for members here.
Access the SAB application form here.
 
POLSIF celebrates 1st anniversary
A year ago in September 2023, nearly 30 representatives of the financial and investment sectors founded the Sustainable Investment Forum Poland (POLSIF). Today, POLSIF celebrates its first anniversary. After the first year POLSIF stands as:
  • The most important organisation in Poland developing and promoting sustainable finance.
  • Home to 125 regular members – the best experts in sustainable finance, and the most prominent financial companies among its institutional members.
  • A partner for the national administration and a member of the Polish Sustainable Finance Platform.
  • A leading opinion maker in Poland.
  • An integrator of the sustainable finance community.
  • A centre of expert knowledge and training.
POLSIF would like to thank Eurosif for a fruitful cooperation. Looking ahead to another year of activity, POLSIF’s birthday wish is to deepen its collaboration with other SIFs and to eliminate barriers to the growth of sustainable finance values and quality in Poland and across the entire CEE region.
 
New Standard Questionnaire on Sustainability Criteria for Real Estate Investments
SSF has recently published a standard questionnaire on sustainability criteria for real estate investments, which forms a standardised basis for comparing the sustainability of real estate funds. Together with industry experts involved in the creation, SSF held a webinar which provided information on the background, objective, and content of the questionnaire with an extensive Q&A session. Watch the recording here.
 
Updated Sustainable Finance Glossary
The landscape of sustainable finance is changing rapidly and the use of related terminologies is subject to change over time. While it is important to rely on established concepts, certain definitions need to be adapted to reflect current market practice. This is why SSF has updated its Glossary to reflect recent developments and regulatory changes. Find the SSF Glossary here.
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