Ben Nelmes of the UK Sustainable Investment and Finance Association (UKSIF) will give a brief overview of the policy developments that will shape and grow the market for sustainable and responsible investing in the coming years.
Read the below overview for a taste of the content to be covered by UKSIF:
The EU’s sustainable finance action plan is set to be a key factor shaping the future development of responsible investment in the EU and – despite Brexit – the UK. At the heart of the EU’s project is its taxonomy of sustainable economic activities.
The taxonomy is a vast set of criteria detailing the environmental minimum standards that each economic activity must meet to be considered sustainable. It is designed to provide investors with a picture of what a rapidly decarbonising economy will look like, to allow them to manage risks and maximise the economic opportunities arising from the transition to a zero emission economy.
The EU is also developing an Ecolabel for financial products and services aimed at the retail investor. The Ecolabel is an EU standard which can apply to many products – from washing up liquid to washing machines – and signifies that the product you are buying represents the best available options in the market.
The EU wants to create an Ecolabel for financial products and services that would allow retail investors to pick the best of the best environmentally-themed funds to invest in. But first, the EU has to draft the criteria to determine which funds should be eligible to get the Ecolabel. Their current proposal is to use the taxonomy as a basis for these criteria, as well as some minimum social safeguards, some engagement and stewardship criteria, and a few other basic minimum standards.
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