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Introduction

Regulators and politicians expect and demand more and more from financial institutions and corporates when it comes to corporate social responsibility and investment. This is reflected in new sustainability legislation for financial institutions such as the EU Sustainable Finance Action Plan. In addition, there are voluntary sustainability codes and guidelines that more and more financial institutions want to apply.

What is it?

With our ESG transformation service, we ensure that your organization complies with mandatory and voluntary sustainability legislation. For example, by integrating this legislation into your socially responsible investment (SRI) policy, pre-contractual documentation, procedures, SRI reports and agreements with suppliers.

We mainly advise on European legislation resulting from the Paris Climate Agreement and the Sustainable Development Goals of the United Nations from 2015. In 2018, the EU published the Action Plan for Sustainable Financing. With this, the European Commission wants to promote a transition to a circular economy. The EU Action Plan consists of several laws, including:

  • Taxonomy regulation with rules to prevent "greenwashing" by financial institutions.
  • Sustainable Finance Disclosure Regulation (SFDR) with the aim of more transparency about ecological, social and governance (ESG) factors and ESG risks of investments.
  • Corporate Sustainability Reporting Directive (CSRD) with rules for reporting on non-financial (sustainable) information.
  • EU Ecolabel for financial products.
  • Green Bond Standard for green bonds.
  • Guidelines for the use of low-carbon benchmarks (Climate Benchmarks).

The EU Action Plan also has major implications for existing legislation including UCITS, AIFMD and MiFID II with regard to reporting on non-financial information and advising on sustainable products.

Why important?

Much sustainability legislation relates to the management of sustainable (ESG) risks. Consider, for example, climate change, use of natural resources, asset write-downs as a result of new environmental regulations (for example due to higher carbon taxes) and human rights violations. By taking these risks into account, the risk / return profile of your investments can be improved. In addition, sustainability legislation is aimed at realizing a sustainable world. By complying with sustainability legislation, you prevent fines and reputation damage.

For who?

ESG transformation is intended for pension funds, asset managers, banks, insurers, intermediaries and corporates who must comply with various sustainability laws, codes and guidelines and who do not have sufficient knowledge in-house or who want a second opinion.

Main benefits

  • Comply with sustainability legislation.
  • Improving risk / return profile by managing sustainable (ESG) risks.
  • No need to hire permanent staff.