UNEP FI Virtual Panel Debate: Next steps in EC Sustainable Finance Strategy and Taxonomy development

Next steps in EC Sustainable Finance Strategy and Taxonomy development: How can financial institutions prepare?
Given Europe’s central role in the global financial system and the continent’s climate ambitions, the EU has taken the lead in developing an assessment framework. With a European target to be carbon neutral by 2050 the  Action Plan on Financing Sustainable Growth plays a pivotal role. The Action Plan seeks to re-orientate capital flows towards sustainable investment and manage financial risks stemming from climate change by identifying whether an economic activity is environmentally sustainable.
Despite some limitations, the taxonomy represents a major step towards creating a common language for classifying green activities. Going forward, the taxonomy will enable European financial institutions to set ambitious funding goals and measure their progress. Other regulators around the world may soon follow the EU’s lead. A global standard would increase the demand for better environmental and climate data, leading to greater transparency. Businesses failing to deliver on their sustainability commitments could be easily identified and companies producing positive impacts would become more attractive to investors. These dynamics could empower the financial industry to play a transformative role in tomorrow’s low-carbon transition.
• Evolving regulatory and policy challenges in Europe: ESG regulatory requirements in Europe; impact for investors and asset managers.
• Examining the likely implications for Sustainable Finance Disclosure Regulation (SFDR) scheduled for March 2021
• How are firms implementing mandatory sustainability disclosures?
• EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks
• An update on TCFD framework across Europe- post Brexit implications for the UK
• With the urgency to adequately price climate risk does this require a harmonisation of not only European but global disclosure standards as well?