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Clifford Chance

Clifford Chance
Briefings

Briefings

EU Sustainable Finance Action Plan - What you need to know

28 March 2018

The European Commission recently unveiled its strategy for reforming the EU financial system to support its climate and sustainable development agenda.

Announced on 8 March, "Action Plan: Financing Sustainable Growth" builds on many of the recommendations of the EU High- Level Expert Group on Sustainable Finance published earlier this year. Notable features of the Action Plan include the establishment of a new EU classification system for sustainable activities, mandating sustainability considerations into the fiduciary duties of institutional investors and asset managers, and measures to improve corporate disclosure of non-financial and climate related information.

The Action Plan represents a significant step in the EU’s effort to embed sustainability considerations into the financial system and contains a wide range of legislative and non-legislative measures. Certain of the recommendations are for imminent implementation in 2018 whilst more controversial proposals, such as potential amendments to capital requirements in the EU, are likely to be subject to fierce debate.

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