Environmental, social, and governance (ESG) considerations play a crucial role in asset managers' investment decisions for several reasons:
Sustainable Finance
The asset management industry plays a key role in meeting the objectives of the European Green Deal to make the EU’s economy sustainable. Our members integrate ESG considerations across their risk management processes and investment decisions. They develop sustainable investment products and foster transparency to fight greenwashing. This increases choice, trust and, in turn, retail investors’ participation. Overall, such efforts mobilise capital towards a fair and just transition to a climate-neutral economy by 2050.
EFAMA actively contributes to the development and implementation of EU’s sustainable finance initiatives. Among them are a comprehensive transparency framework for financial market participants, standards and labels for green financial products, classification of green economic activities and policies enhancing corporate sustainability reporting.
Related policy positions
Policy Position
Sustainable Finance
03 September 2023
Bringing ESG Ratings and ESG Data Providers within the Regulatory Perimeter
Policy Position
Sustainable Finance
16 January 2023
EFAMA responds to ESMA's Call for Evidence on Greenwashing
In an environment with unclear definitions at EU level on key sustainable finance concepts, as well as a lack of complete, comparable and transparent ESG data, all market actors are concerned about the risk of greenwashing.
Policy Position
Sustainable Finance
Sustainability reporting (NFRD)
10 August 2022
ISSB's Exposure Drafts on Sustainable Reporting Standards
EFAMA shares the urgent need to improve the consistency and comparability of sustainability reporting at a global level. Therefore, we welcome the opportunity to respond to the ISSB consultation on the Exposure Drafts on “General Requirements for Disclosure of Sustainability Related Financial Information” (IFRS S1) and on “Climate-Related Disclosures” (IFRS S2).
Related news
Press Release
Sustainable Finance
07 October 2024
Fund naming guidelines put growth of corporate green bond sector at risk
Clarification is urgently needed to enable rather than restrict EU sustainable investment
The EU has been at the forefront of green bond issuances, demonstrating strong growth and commitment to sustainable finance. However, ESMA’s new Fund Naming Guidelines create inconsistencies with other sustainable finance regulations, like the EU Green Bond Standard, which could hamper the growth of the corporate green bond sector.
Press Release
UCITS
Sustainable Finance
24 September 2024
Significant growth of sustainable equity funds over the last 5 years
Regulatory clarity required to sustain further growth
Publication
UCITS
Sustainable Finance
24 September 2024
Market Insights #18 - Sustainable Equity UCITS
This report looks specifically at the evolving trends of the equity asset class of sustainable UCITS, whose share is the highest (53%) in total sustainable UCITS funds. It highlights their role as investment vehicles in facilitating the green transition. The universe of sustainable equity UCITS funds is defined based on Morningstar’s classification of sustainable financial instruments1. This means funds must claim to have a sustainability objective, and/or use binding ESG criteria for their investment selection.
Related publications
Publication
UCITS
Sustainable Finance
24 September 2024
Market Insights #18 - Sustainable Equity UCITS
This report looks specifically at the evolving trends of the equity asset class of sustainable UCITS, whose share is the highest (53%) in total sustainable UCITS funds. It highlights their role as investment vehicles in facilitating the green transition. The universe of sustainable equity UCITS funds is defined based on Morningstar’s classification of sustainable financial instruments1. This means funds must claim to have a sustainability objective, and/or use binding ESG criteria for their investment selection.
Publication
Investor Education
Sustainable Finance
28 November 2023
Sustainable Investing Explained in 9 Questions
EFAMA launches its new brochure "Sustainable investing explained in 9 questions".
Despite the growing interest and importance of sustainable investing, most EU citizens often find it difficult to navigate this relatively new investment landscape.
In the brochure we explore :
Publication
Statistics
Sustainable Finance
14 December 2022
EFAMA Asset Management Report 2022
EFAMA's latest edition of its 'Asset Management in Europe' report provides an in-depth analysis of recent trends, focusing on where investments funds and discretionary mandates are managed in Europe.
The asset management sector is a crucial one for the European economy, with a key role to play in financing the green transition:
Past events
Contact
Regulatory Policy Advisor
