Today, 8th of June, the European Commission published the Communication on the Mid-Term Review of the Capital Markets Union Action Plan. The document reiterates the intention to strengthen the third pillar of the Investment Plan for Europe and the role of capital markets in addressing the financial needs of Member States economies.
Good progress has been made to address some of the most pressing issues around the key players, particularly interesting are the amendments on Solvency II to encourage insurance companies to invest in ‘qualifying infrastructure projects’, opening up further the ability of private investors in an asset class with so much potential for sustainability.
Eurosif is particularly happy about the clear commitment to strengthen the EU’s leadership on sustainable investment. The recognition that long-term investment decisions have to integrate wider risks and returns linked to environmental and social externalities is key to a more sustainable financial system. Acknowledging the evident need to integrate ESG considerations in investors’ governance is part of this recipe for sustainability which also needs to be reflected in companies.
To read the full press release, please click here.