1. MAKING FINANCE GREEN
The EU aims to lead the discussion on sustainable finance globally and develop a coherent financial system supporting global sustainable growth. Ursula von Der Leyen, the European Commission President elect, has committed to a ‘European Green deal’ as the main priority. Climate change and the financial services sector’s contribution to a further sustainable environment is getting increasing traction and is foreseen to be influencing all future initiatives, including prudential legislation, which specifically sets out how financial firms must control risks.
Potential impact? Financial services firms can expect further legislation requiring Environmental, Social and Governance (ESG) factors to be taken into account. In addition to dedicated legislation, ESG considerations are expected to be integral in any new legislation or revision – not least due to pressure from the European Parliament.