Breaking news – Sustainable Finance

What’s new in sustainable finance?

The European Securities and Markets Authority (ESMA) released the final report outlining Guidelines on the naming of funds incorporating ESG or sustainability-related terminology. The guidelines include defining thresholds for the utilization of ESG-related terms, linked to investments supporting environmental or social characteristics or sustainability objectives as outlined in the SFDR (80%), or the proportion of sustainable investments for sustainability-related terms (50%), along with criteria for exclusion from the Paris-aligned Benchmarks (PAB) regulations.

The ECB and national central banks of EU Member States are collaborating to develop statistical indicators for climate-related analysis. These indicators aim to enhance the analysis of climate risks affecting monetary policy, price stability, and the financial system, while providing transparency on climate-related matters during the transition to a greener economy.

The European Commission is preparing guidance for the Social Climate Fund to ensure compliance with the 'do no significant harm' principle, which includes common principles and specific assessment tools. Feedback on this initiative is open from 30 April 2024 to 28 May 2024 and will be used to refine the guidelines, with all feedback published according to the rules. To contribute, users must register or log in with their social media accounts.

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