December Policy Newsletter

 

The PRI’s Responsible Investment Policy Briefing covers global and regulatory developments.

In December’s edition:

 

  • The Technical Expert Group calls for feedback on EU classification system – or taxonomy – for environmentally-sustainable activities
  • The European Commission unveils “A Clean Planet for all” vision
  • EU Capital Requirements Regulation: banking package proposed by Ecofin
  • US update on proxy voting process discussions
  • Aligning investors with sustainable finance: a focus on the OECD
  • France roadmap for sustainable finance launched
  • French Financial Markets Authority publishes sustainable finance roadmap
  • AMNT and UKSIF roll out guide on ESG advice for trustees
  • A call for investor action from Buenos Aires
  • Reserve Bank of New Zealand publishes climate change strategy

 

To provide feedback on our work or suggest new policy areas of focus, please contact us.

Technical Expert Group calls for feedback on EU classification system – or taxonomy – for environmentally-sustainable activities

This month, the EU Technical Expert Group on Sustainable Finance called for feedback on the EU classification system – or taxonomy – for environmentally-sustainable activities. Experts and stakeholders are invited to comment on the first proposed activities by 22 February.

 

The Commission will host workshops on: 1) activities substantially contributing to climate change mitigation 2) activities substantially contributing to climate change adaptation, and 3) the evaluation of “do no significant harm” to other environmental objectives.

 

See the PRI’s briefing paper on the taxonomy and EU Action Plan, or contact Alyssa Heath for more information.

A Clean Planet for all: Europe’s long-term vision for a climate-neutral economy

The strategy presents a vision for how net-zero greenhouse gas emissions can be achieved by 2050 through a cost-efficient and socially-fair transition, setting the direction for EU climate and energy policy.Proposed amendments to EU prudential rules on sustainability issues

 

Earlier this month, the Economic and Financial Affairs Council endorsed a banking package that includes three amendments to the EU prudential rules for banks on sustainability issues. Large European banks will be required to disclose information on ESG-related risks, physical risks and transition risks as of 2021.

 

Update on US proxy voting process discussions  

SEC Chairman Jay Clayton, gave a speech this month on proxy voting, saying he would like the SEC to consider updating resubmission thresholds for shareholder proposals, as well as new rules for proxy advisory firms.

 

The Federal Trade Commission also held a meeting to consider whether investor engagement in corporate governance makes companies behave in anti-competitive ways. Heather Slavkin Corzo, the PRI’s Head of US Policy, participated on the institutional investors, diversification and corporate governance panel.

 

Meanwhile, in Washington, D.C., the Senate Banking Committee held a hearing on the proxy process and associated rules.

 

The following week, Chair Clayton also testified at a hearing on topics including proxy voting, stock buybacks, cyber security and the impacts of Brexit on the US market.