Investors warn Omnibus package could weaken EU sustainability disclosures, harming investment and economic competitiveness
- The EU Commission is expected to introduce an Omnibus Package to amend key sustainable finance regulations on 26th February
- Investors warn move is likely to create legal uncertainty, jeopardise Europe’s long-term economic competitiveness and harm investment if rules are reopened for wholesale revision
- More than 212 financial sector actors, including 163 asset owners and asset managers with a combined €6.6 trillion assets under management, have signed a joint statement calling on the EU Commission to “preserve the integrity and ambition” of the EU’s sustainable finance framework
- The European Sustainable Investment Forum (Eurosif), the Institutional Investors Group on Climate Change (IIGCC) and the Principles for Responsible Investment (PRI) are supporting investors’ call urging EU policymakers to focus on targeted changes to technical standards and clearer implementation guidance.
Investors say these regulations are “fundamental cornerstones of the EU’s sustainability policy architecture” and are crucial for fostering long-term sustainability and economic growth in Europe. This is because, as the statement argues, the rules facilitate investors to make informed decisions to “manage risks, identify opportunities and ultimately reorient capital towards a more competitive, equitable, and prosperous net-zero economy.”
While recognising the need for targeted improvements, the joint statement emphasises the importance of long-term policy stability and highlights the dangers of wholesale reopening of the three laws that could lead to a significant weakening of corporate sustainability disclosures which are essential for investment decisions.
Signatories “support the overall objective of simplifying and improving the coherence of the EU sustainable finance framework,” but argue that a “more effective approach would be to focus on streamlining the technical standards and provide clear implementation guidance.”
Access the press release here.
Access the statement here.
