Long-Term Investment

The challenges faced by Europe in achieving the sustainable economic growth needed to escape the current crisis have been well documented. They include the lack of available financing, especially for long-term projects and SMEs; political and regulatory barriers to encourage financing of investments that promote environmental and social sustainability; lack of trust in the financial sector; and excessive short-term behaviour in financial intermediaries.

Eurosif supports the creation of specific legal frameworks and investment vehicles to channel more investments into these projects, as this may make them more attractive to investors.

However, Eurosif contends that the long-term financing of the European economy cannot be decoupled from the environmental and social challenges facing Europe and the world. EU policy initiatives supporting long-term investment must therefore be aligned with smart, sustainable, low-carbon, resource-efficient and inclusive growth. Eurosif argues that, beyond incentivizing private investments into long-term, real economy-related projects, EU policy-makers have the opportunity to address and reassess the core objectives and functioning of financial markets, in order to again place Europe at the forefront of sustainability in all aspects of society including finance.

In this agenda, SRI can play a key role as long-term investors and investors in long-term assets must take into consideration environmental, social and governance (ESG) issues in the management of assets, and align this with the needs and expectations of their beneficiaries.

Policy Updates:

The European Commission launches a fiduciary duty consultation

The European Commission steps up Today, the 13th of November, the European Commission launched a public consultation on providing legal ...

PensionsAge – Embracing ESG

In an article for the PensionsAge October 2017 magazine (free registration required), Andrew Williams talks to Eurosif's Executive Director, Flavia ...

UK Government Announces Corporate Governance Reform Package

This morning the Government set out its “world leading” package of corporate governance reforms designed to increased boardroom accountability and ...

January Insight – PLSA members demand more accountability

The Pensions and Lifetime Savings Association (PLSA) is the UK body in charge of helping pension professionals run better pension ...

Commission welcomes agreement on rules improving corporate governance in EU companies

After a year of negotiations, there is finally agreement on the proposal revision of the rights and duties of shareholders ...

UK’s Corporate Governance Green Paper

The UK government publishes a new Green Paper on Corporate Governance. The paper's clear focus is on potential regulatory revisions to ...

Next steps in embedding corporate responsibility

VBDO has just published the 2016 edition of its AGM report. Titled 'Next steps in embedding corporate responsibility', the report ...