AEIP gives its input to the open consultation on the renewed sustainable finance strategy
AEIP responded to the European Commission’s open consultation on the renewed sustainable finance strategy. AEIP believes that the momentum is a good opportunity to promote environmental goals and create clarity around risks and new investment opportunities. At the same time, environmental changes need to go hand in hand with a renewed social and governance approach. AEIP and its members understand that consolidation of ESG data and harmonisation of standards can increase accessibility of sustainable finance, thus becoming the default option. The stimuli could help small innovative businesses to come up with new, clean technology while the transition in combination with proper pricing will create new investments opportunities.
However, AEIP recognizes several challenges linked to the renewed sustainable finance strategy and the further mainstreaming sustainability in the financial sector. As an organization that represents IORPs, we recognize that ESG data availability, comparability and quality of ESG data is a major issue, also when implementing sustainability regulations/trajectories (Tax/DR/NFRD). In addition, there is a considerable cost label attached to these new requirements, thus making it rather impossible for small parties to align with all requirements. Due to large variety of data, efforts are hard to compare and it is difficult to measure whether financial and companies are “walking the talk”.