Commission urges the European Supervisory Authorities to promote sustainable finance

The European Commission instructs the European Supervisory Authorities (ESAs) to implement sustainable development in the financial market. The Commission oversees and outlines the work of the ESAs and now encourages them to take account of environmental, social and governance-related factors and risks in all the tasks they perform.

​The Commission’s proposals aim to achieve uniform application of financial supervisory practices. Finance Finland (FFI) agrees that uniform practices promote healthy financial markets and increase stability.

“Ensuring consistency includes harmonising the internal models used in the prudential supervision of insurance companies”, explains FFI’s Acting Managing Director Esko Kivisaari.

The Commission also wants the ESAs to prioritise fintech companies and encourage member countries to promote innovation and strengthen cybersecurity. In addition to ensuring responsible practices, the Commission states that the ESAs should consider technological innovations and advances in all their work.

The ESAs consist of the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions authority. All three bodies were established in 2011 to increase trust in market supervision and to accelerate recovery from the financial crisis.

The European Commission press release