This interim report of the High-Level Expert Group on Sustainable Finance (HLEG) of the European Commission identifies two imperatives for Europe’s financial system. The first is to strengthen financial stability and asset pricing, by improving the assessment and management of long-term material risks and intangible factors of value creation. The second is to improve the contribution of the financial sector to sustainable and inclusive growth, notably by financing long-term needs such as innovation and infrastructure, and accelerating the shift to a low carbon and resource-efficient economy.
The report presents the initial analysis, options, dilemmas and trade-offs that the HLEG has identified and outlines key areas where European policymakers could further align financial practices with sustainable policy objectives.