PensionsEurope welcomes the EC Communication which aims to take next steps in the EU Sustainable Finance Strategy. Private finance has an important role to play in the recovery from the COVID pandemic and in the transition to a sustainable economy.
The new strategy is calling for the publication of a report for activities which sounds like a “brown taxonomy”. PensionsEurope believes that while a brown taxonomy would provide further indications concerning environmental risks, its development might produce negative consequences, especially if not complemented by consistent indicators promoting the greening of enterprises.
Pension Funds also worry on how double materiality may be regulated. The IORP II Directive already requires IORPs to consider ESG risks and disclose information to current and prospective. PensionsEurope believe that the IORP II Directive clarifies that the measures should be proportionate to the nature, scale and complexity of the IORP. Any EU action has to be in accordance with the principle of proportionality and it would also be preferable for any action to take first into consideration the upcoming revision of the IORP II Directive. You can read our press release here
