The EU has already established a suite of actions through this Action Plan to promote a financial system that supports sustainable investment. This report sets out recommendations to ensure that investors can scale up their contribution to the EU Green Deal and sustainability goals more broadly. The report is part of a research programme run by the PRI throughout 2019 and early 2020, drawing from interviews with investors and the PRI’s own programmatic research.
The report showcases six policy areas that the PRI and its signatories consider priorities as the EU develops a sustainable financial system. Each section explains the thinking behind these priorities, which are based on investor views gained through interviews and PRI analysis, and recommends policy changes that have the potential to further align the European economy with the Paris Agreement and the UN Sustainable Development Goals (SDGs).
The five recommendations cover: Climate, leadership and the real economy, Disclosure and transparency, Public and private finance, Stewardship, and EU taxonomy. Pension market reform is also discussed, although the EU is not able to reform member states' pension systems thus no recommendations are provided. Recommendations were assessed on the likely impact, the alignment with the PRI’s theory of change and mission, and the intended target audience (only those where the EU or Member States can act were selected for further analysis).