Policy

Eurosif acts as the representative body of the pan-European SRI community to the EU Institutions (European Commission and Parliament) as well as to other relevant supra-national organisations. By doing so, it aims to promote sustainability through European financial markets and a broader adoption of SRI practices in Europe.
Eurosif’s policy work is informed by:

• The expertise of its members and member affiliates through various working groups;
• In-depth European market or thematic research;
• Collaboration with external stakeholders active in the sustainable and responsible investment space or related fields.

This “policy method” as well as the broad constituency of Eurosif, covering the entire sustainable and responsible investment value chain, ensure that various sensitivities, points of views and expertise are reflected in its policy recommendations and positions.

Our Priorities

Eurosif believes that EU policy-makers should foster the development of SRI among institutional investors, in particular in mandating disclosure with regards to what extent (if at all) extra-financial (“ESG”) considerations are taken into account in the selection, retention and realisation of their investments; and disclose their policy in relation to the exercise of the voting rights attached to their investments. Find out more.

Eurosif believes that EU policy-makers should mandate extra-financial disclosure, including some relevant key performance indicators, and incentivize best practices. Extra-financial (“ESG”) data is relevant material information that investors should have and increasingly want as a means to better gauge longer term investment risks and opportunities of investee companies. It is increasingly understood that financial statements capture less than 20% of corporate risks and value creation potential. Find out more.

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. Find out more

CMU is one of the most important and prominent initiatives of the Juncker Commission. Key objectives of the CMU are: to unlock the potential of non-bank financing of the economy – especially for SMEs, to decrease Europe’s “bankcentricity” and get closer to the US model of funding. The initiative is also aimed at ending the existing fragmentation of European capital markets and promoting more competitive, more diverse, and better quality financial services. Find out more

Good corporate governance is critical for the successful execution of an SRI agenda: it allows relevant extra-financial (“ESG”) issues to be debated at the highest corporate level, between board directors and shareholders. Ownership and power imply responsibility from institutional investors. With a long-term investor perspective, it is fundamental that shareowners can actively exercise their rights to vote and engage with the companies they own. Find out more

Our Positions