Stewardship
On behalf of their clients, asset managers act as stewards for the companies in which they invest, to encourage better governance and improve their financial, environmental and social performance. Investors do so by exercising their shareholders’ rights, and engage with investee companies on issues relevant to the sustainability and long-term performance of the firm. Such issues typically include firm governance, due diligence, executive remuneration and the overall business strategy.
EFAMA adopted a Stewardship Code with principles for asset managers’ engagement with investee companies. We support the development of pragmatic, evidence-based regulation and promote consistency across different pieces of legislation. We contribute to developing the EU sustainable corporate governance agenda and support members with the implementation of the revised Shareholders Rights Directive.
EFAMA comments European Commission's Proposal on disclosures relating to sustainable investments
EFAMA comments European Commission's Taxonomy Proposal (Sustainable Finance Package)
EFAMA on EC Proposal on low-carbon benchmarks and positive carbon impact benchmarks
New rules on multiple voting shares must strike the right balance between issuer and investor needs
The EU’s Listing Act is a key legislative initiative aimed at enhancing the appeal of EU public markets and facilitating capital access for small-medium enterprises (SMEs). That includes a new proposal by the European Commission for a Multiple Voting Shares Directive (MVSD). EFAMA believes it is of key importance to the European economy to ensure that EU capital markets remain attractive and competitive globally, therefore getting these types of initiatives right is crucial.
Multiple Voting Shares Directive
EFAMA appreciates the European Commission's efforts to bolster the Capital Markets Union and increase the appeal and competitiveness of public capital markets. However, the investment industry wishes to highlight some concerns concerning this Directive. Against this backdrop, it is important to note that the European Union has recently enhanced its corporate governance and shareholders’ engagement practices to fortify financial market stability, uphold capital market integrity and safeguard investors’ interests.
Corporate sustainability reporting legislation adopted but still some years of uncertainty ahead for sustainable investing
Following in the footsteps of the European Parliament earlier this month, the Council of the EU has now finalised the legislative process by adopting the Corporate Sustainability Reporting Directive (CSRD), a move which is very much welcomed by EFAMA. This comes days after the first set of European Sustainability Reporting Standards (ESRS), which give life to the double materiality principle established by the CSRD, were finalised by EFRAG and submitted to the European Commission for adoption.
Infographic | The CSRD Timeline
Key dates for the Corporate Sustainability Reporting Directive
Mandatory European sustainability reporting standards are crucial as insufficient availability of ESG data is a key impediment to realising the full potential of the EU’s sustainable finance regulatory framework. As information preparers under the Sustainable Finance Disclosure Regulation (SFDR), asset managers will undoubtedly benefit greatly from relevant, comparable, reliable and public ESG metrics of companies’ activities and financial risks.
EFAMA Annual Review 2020-2021
It gives me great pleasure to provide you with an overview of our activities since our Ordinary General Meeting of last year.
Annual Review June 2019-June 2020
"It gives me great pleasure to provide you with an overview of our activities since our Annual General Meeting in Paris last year. While we were very much looking forward to hosting you all in Brussels this week, the current crisis and associated travel restrictions has forced us to improvise and turn our meeting into a virtual AGM.
