In light of international landmark agreements, the EU has been gearing up efforts to deliver on its goal to transition to a low-carbon, more resource-efficient, sustainable economy. The financial sector has a critical role to play in this process and the EU wants to be at the forefront of efforts to build a financial system that supports sustainable growth.
To that end, the European Commission has developed a comprehensive Action Plan, including both legislative and non-legislative initiatives. Examples include new legislation on disclosures by fund managers and investors relating to sustainability risks and sustainable investments, and amendments to the AIFMD Delegated Acts to take better account of sustainability.
Over the coming five-year legislative term (2019-2024), sustainability is expected to remain a key priority for European institutions.
Given its business model focused on long-term and active ownership, private equity as an asset class is particularly well suited to integrating and managing environmental, social and governance (ESG) matters. As such, the industry can play a crucial role in helping the EU achieve its sustainability goals. However, regardless of the laudable aims of this ambitious EU work-stream, the outcome of measures may have a very broad (and sometimes disproportionate) impact, and affect a wide range of regulatory files of direct relevance for private equity managers and institutional investors.
One example is the ongoing taxonomy debate, which could determine whether or not an asset or investment qualifies as environmentally sustainable. The definition might become even more important if the decision is made at some future point to adjust the prudential capital requirements set out in EU law to incentivise institutional investors to invest sustainably. Such a move could have a major effect on private equity funds’ ability to raise capital from those investors.
The monthly members’ policy call explores the latest EU policy developments and are a chance for members to discuss them directly with the Public Affairs team.
The Invest Europe Climate Change Guide constitutes one of the most complete guides on ESG issues, and in particular climate change, for private equity investors to date. It includes tailored guidance, practical tools and concrete business cases made by practitioners for practitioners. Its structure follows a step-by-step approach and is based on three different modules – Introductory, Intermediate and Advanced - covering all stages of investors’ ESG journey.
Public Affairs Director
Senior Public Affairs Manager
Public Affairs Officer
Sofia Garrido Perez
Public Affairs Officer
Public Affairs Manager
Most PCs automatically accept them but you can change your browser settings to restrict, block or delete cookies if you want. Each browser is different, so check the 'Help' menu of your particular browser (or your mobile phone's handset manual) to learn how to change your cookie preferences. Many browsers have universal privacy settings for you to choose from.
Cookie settings in most versions of Internet Explorer can be found by clicking the tools option and then the privacy tab.
Cookie settings in Firefox are managed in the Options window's Privacy panel. See Options window - Privacy Panel for information on these settings.
Click on the spanner icon on the toolbar, select settings, click the under the bonnet tab, click on content settings in the privacy section.
You can manage cookies in Opera if you Click on settings, then Preferences, then Advanced and finally Cookies
Choose Safari, then preferences and then click security. You should then be able to specify if and when Safari should accept cookies.
To manage cookies on your mobile phone please consult your manual or handbook.
If you decline cookies, some aspects of Invest Europe site may not work on your computer or mobile phone and you may not be able to access areas you want on the website. For this reason we recommend that you accept cookies.
If you delete all your cookies you will have to update your preferences with us again and some aspects of our site may not work.
If you use a different device, computer profile or browser you will have to tell us your preferences again.
If you'd like to learn more about cookies in general and how to manage them, visit aboutcookies.org.
We can't be responsible for the content of external websites.Opt-out of cookies