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Improving the clarity and reliability of sustainability framework in the EU financial sector (role of the ESAs, expected improvements from CSRD, SFDR, invest product classification, ratings, CSDD)?

Improving the clarity and reliability of sustainability framework in the EU financial sector (role of the ESAs, expected improvements from CSRD, SFDR, invest product classification, ratings, CSDD)?

Day 1 Afternoon

Wednesday 13 September

Room :

ROOM 2

Speakers

Chair
Ugo Bassi
Director, Financial Markets - DG for Financial Stability, Financial Services and Capital Markets Union, European Commission
Public Authorities
Natasha Cazenave
Executive Director - European Securities and Markets Authorit...
Birgit Puck
Managing Director Securities Supervision - Austrian Financial Market Authority
Shaneera Rasqué
Regulatory policy affairs, ESG Coordinator for investment funds - Commission de Surveillance du Secteur Financier (CSSF)
Industry Representatives
Cornelia Andersson
Group Head of Sustainable Finance and Investing - London Stock Exchange Group (LSEG)
David Henry Doyle
Vice President, Head of Government Affairs & Public Policy EMEA - S&P Global
Sinthuja Yogarajah
Associate Director ESG Integration - Federated Hermes (UK) LLP

Background and objectives of the session

Greenwashing, the deceptive practice of exaggerating environmental efforts, is a growing concern. The EU has introduced regulatory changes to combat this and enhance transparency in ESG ratings, aligning them with the Green Deal.
A concerning trend is the misuse of SFDR as a label for financial products, leading to reclassification of funds. The European Commission is reviewing SFDR to tackle greenwashing.

The Commission has also proposed regulations for ESG rating providers to offer clear information on ESG quality, increasing transparency in sustainable investments.

ESAs have released progress reports on greenwashing, with final reports due in May 2024. The European Banking Authority is exploring green loans and mortgages.

The EU has launched measures to strengthen its sustainable finance framework, including transition finance recommendations and steps against greenwashing and misinformation.

The Corporate Sustainability Due Diligence Directive and European Sustainability Reporting Standards, set for adoption soon, will enhance the sustainability framework’s clarity and reliability.
A roundtable will assess progress in the fight against greenwashing, evaluating recent regulatory efforts and considering the need for additional measures.

  1. Are recent regulatory initiatives and proposals, such as those related to SFDR, greenwashing reports by ESAs, and ESG rating agency regulation, effective or expected to improve the current situation? What benefits will the proposal for ESG rating agencies bring, and what impacts might be seen due to investment product classification and the Corporate Sustainability Due Diligence Directive (CSSD)?
  2. Are the existing initiatives, including SFDR, taxonomy, CSRD, and European Sustainable Reporting Standards, enough to address the challenges of greenwashing and ESG transparency? What additional measures are required, like regulatory reforms or private sector efforts for clarity, and should ESG data providers be subject to regulation?
  3. Regarding ESG labels, is there a need for EU-level convergence and common minimal standards, and is this desirable?