EU Update
May/June 2007
Eurosif meetings at EU level
Eurosif provides input for European Academics for Business in Society meeting
In a meeting coordinated by EABIS on May 15th, Eurosif provided insight on how to enhance knowledge and research on SRI issues in Europe. The output of this meeting will be targeted towards EU policy makers and leading academics on key research topics for future work.
Eurosif drafting a response to the EU Green paper on Retail Financial Services
The Green Paper, released in early May 2007, aims to strengthen and deepen the European Commission's understanding of the problems faced by consumers and industry, set out the overarching objectives and highlight areas where more work may be needed.
The green paper can be downloaded at:
http://ec.europa.eu/internal_market/finservices-retail/policy_en.htm#consultation
Eurosif meets DG Research
Eurosif met with the Head of Unit Sustainable Development for DG Research and her staff to discuss Eurosif and determine the future agenda of EU funded research projects around sustainability issues. Eurosif has been invited to continue the discussion and provide ideas of sustainable investment research topics. If member affiliates have suggestions, please contact Marion de Marcillac.
Eurosif attends European Parliamentary Financial Services Forum
This exclusive event took place on May 15th 2007 and was attended by policy makers and leading financial services providers. The Topic was ‘Europe’s competitiveness: how financial institutions can help deliver it’.
Eurosif meets DG Tax
Eurosif met with representatives from DG Tax following the first-ever Brussels Tax Forum, which focused on “Taxation for Sustainable Development”. The meeting was oriented around learning about DG Tax interests for sustainable development. Some of their future thinking will centre on eco-taxes, and whether potential incentives could be created around early stage sustainable venture capital investing.
EU News
Corporate governance: Directive on shareholders' rights formally adopted
The European Commission has welcomed the Council's formal adoption of the Directive on the exercise of shareholders' rights, which means that the Directive is now officially part of EU law. This key measure will better enable shareholders of listed companies throughout the European Union to exercise their rights and have their say. Member States now have two years to implement the Directive in their national laws.
For more information please see the europa web site
DG Internal Market at the European Commission publishes external studies commissioned on the “One Share One Vote” issue
Carried out by Institutional Shareholder Services Europe (ISS Europe), the European Corporate Governance Institute (ECGI) and the law firm Shearman & Sterling LLP, the study’s main findings are the following:
-On the basis of the academic research available, there is no conclusive evidence of a causal link between deviations from the proportionality principle and either the economic performance of listed companies or their governance.
-However, there is some evidence that institutional investors perceive the “control-enhancing mechanisms” (such as multiple voting shares, priority shares, voting rights ceilings etc.) negatively and are likely to place a discount on companies that used them.
-They also consider that more transparency would be helpful in making investment decisions.
For more information please see the europa web site
REACH entered into force on 1 June 2007
The regulation on the Registration, Evaluation and Authorisation of Chemicals (REACH) continues to evoke controversy as it enters into force on 1 June. While the chemical industry appears ready to work with the new law, environmental groups continue to lament what they see as its shortcomings. However the EC feels that the benefits of the REACH system will occur gradually, as more and more substances are phased into REACH.
