The European Commission has issued a consultation document concerning institutional investors and asset managers’ duties regarding sustainability.
The purpose of the consultation document is to gather information on how asset managers and institutional investors could include environmental, social and governance factors when taking decisions. The may help them allocate capital more efficiently by taking into account sustainability risks, rather than merely seeking to maximise short-term financial returns.
The consultation is part of the Commission’s efforts to mobilise private capital towards green and sustainable investments to enable the transition to a low-carbon economy. The consultation also further underlines the EU’s commitment to the Paris Climate Agreement and the UN 2030 Agenda for Sustainable Development.
The deadline for comments on the consultation document is 22 January 2018.
The Commission will adopt an Action Plan on sustainable finance in Q1 2018.