The Commission will use the HLEG’s
work to draw up a sustainable finance action programme. It will be published on
22 March.
The Commission considers it a
priority to integrate sustainability firmly into the EU’s operations and financial
regulation. In establishing the HLEG, the Commission saw that the
financial sector has a key role in directing capital into sustainable technologies. The
financial sector is exposed to environmental risks due to the long-term nature
of its work.
Kauppi: the financial sector has a
leading role in sustainable finance
According to FFI’s Managing Director
Piia-Noora
Kauppi, putting an emphasis on sustainability
requires many changes to real economy, but she believes that the financial
system is ready to embrace these changes.
“The expert group’s key
recommendations bring the financial sector into a better position to promote
these changes and the objectives set in the Paris Climate Agreement, whose main
goal is to limit global warming to below 2°C”, explains Kauppi.
HLEG’s recommendations include
advice on steering the flow of public and private capital towards sustainable
investments, and steps the financial sector and its supervisors can take
to protect the financial system from environmental risks.
According to Kauppi, institutional
investors, banks, insurers and pension funds play a key role in sustainable
finance. Finnish employee pension insurance companies have already gained an
international reputation for including sustainable finance in their investment
policy.
At best, however, the financial
sector can only support the desired developments. Kivisaari points out that no miracle cures are available: sustainability work
requires the contribution of all sectors.
“In transport and food and energy production,
for example, the reforms are hindered by state subsidies and set practices. Why,
for instance, are vegetarian protein sources more expensive than minced meat?”
questions Kivisaari.
The Commission’s project is part of
the EU’s 2030 Agenda for Sustainable Development and the execution of the Paris
Climate Agreement.
HLEG final Report
