Sustainable Finance & Corporate Reporting
As climate and environmental challenges continue to gain attention across the globe, investors are increasingly asking for more sustainable financial products and projects, and greater transparency as to how and where their money is invested.
In this context, the EU’s Sustainable Finance Strategy aims to encourage capital flows towards sustainable activities, and to provide investors with more clarity on what constitutes a sustainable investment. To this end, the European Commission has been working on a set of initiatives.
Among these initiatives, the Corporate Sustainability Reporting Directive (CSRD) aims to enhance corporate reporting on sustainability matters to make sure investors have the information they need.
The Taxonomy Regulation, which is already in force, sets the overall framework for labelling economic activities as environmentally sustainable.
The Taxonomy framework will be completed through the use of delegated acts and will be updated regularly.
IOGP key recommendations
The energy transition will require significant investments. The more the EU can steer investments towards the most cost-effective pathway to net-zero emissions, the further and faster it is likely to drive decarbonization across Europe.
The EU Taxonomy should recognize the enabling and transition role natural gas can play alongside renewables in the energy transition.
We call on the Commission to introduce a clear policy planning framework with well-sequenced, realistic timelines. Predictable and stable policy frameworks and transparent communication to stakeholders will be vital in helping reorient investments towards more sustainable technologies and in building a well-functioning sustainable finance framework.