The market for “sustainable finance” has grown exponentially over the last few years. The term usually denotes investment approaches that consider environmental, social and governance factors (“ESG”) in portfolio selection and management. Following up on the Paris Agreement of 2016, the European Union has ambitious plans to mobilize private capital for contribution to sustainability concerns such as climate change and pollution.
In January 2018, the EU High-Level Expert Group on Sustainable Finance published its final report.  It suggests focusing on common taxonomy and standards, investor duties, transparency of asset managers, governance of companies, and enhanced powers of the European Supervisory Authorities. In March 2018, the European Commission went ahead with an action plan, announcing a number of short and long-term legislative steps that should be taken. Continue reading