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2024 | OriginalPaper | Buchkapitel

12. Sustainable Finance: An Overview of ESG in the Financial Markets

verfasst von : Marieke Driessen

Erschienen in: Sustainable Finance in Europe

Verlag: Springer International Publishing

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Abstract

The author provides an overview of ESG in the financial markets. She sets out that sustainable finance has been around for years. After publication of the Sustainable Finance Action Plan by the European Commission in March 2018, sustainable finance rose to the top of the EU legislative agenda for the financial markets, as well as the regulatory and supervisory agenda of EU and national supervisors and competent authorities of the financial sector. The author provides an overview of various sustainable and ESG products that have been a feature of the international financial markets, such as green, ESG and sustainability-linked loans, bonds and derivatives. The author also discusses the current legal framework in which these financial products are issued, with a focus on EU-level legislation, including the non-financial disclosure requirements of the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards, the Taxonomy Regulation, the Sustainable Finance Disclosure Regulation, the Benchmarks Regulation and other financial market legislation. The author also considers legal and regulatory developments on the horizon, such as the EU Corporate Sustainability Due Diligence Directive, the EU Green Bonds Regulation, the ESG Rating Regulation, sustainable securitisations, ecolabelling for retail financial products, as well as greenwashing and climate litigation. The author concludes with a few remarks on general trends in ESG and sustainable finance developments in the financial markets.

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Vorheriges Kapitel The ECB’s New Green Monetary Policy

Nächstes Kapitel The Taxonomy Regulation and Its Implementation

By way of example, in November 2008, the World Bank issued its first green bond, whereby the proceeds of the bond issuance were dedicated to a certain kind of project, based on eligibility criteria for projects and featured a second opinion provider (CICERO) to assess whether a particular project would make a positive impact on the environment. See: https://www.worldbank.org/en/news/feature/2018/11/27/from-evolution-to-revolution-10-years-of-green-bonds.

European Commission, Sustainable finance: Commission's Action Plan for a greener and cleaner economy, dated 8 March 2018, see: https://ec.europa.eu/commission/presscorner/detail/en/IP_18_1404.

European Commission, Communication from the Commission to the European Parliament, the European Council, the European Economic and Social Committee and the Committee of the Regions (The European Green Deal), dated 11 December 2019, COM(2019) 640 final.

The Green Deal Investment Plan is also known as the Sustainable Europe Investment Plan. European Commission, The European Green Deal Investment Plan, see: https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/649371/EPRS_BRI(2020)649371_EN.pdf.

Press release of the European Commission “Sustainable Finance and EU Taxonomy”, dated 20 April 2021, https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1804.

The Action Plan was updated on 5 August 2020 with the “Renewed sustainable finance strategy and implementation of the action plan on financing sustainable growth”, which can be found at https://finance.ec.europa.eu/publications/renewed-sustainable-finance-strategy-and-implementation-action-plan-financing-sustainable-growth_en.

The strategy can be found at: https://finance.ec.europa.eu/publications/strategy-financing-transition-sustainable-economy_en.

European Commission, Strategy for Financing the Transition to a Sustainable Economy, COM/2021/390 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021DC0390.

For the Sustainable Finance Package 2023, see: https://finance.ec.europa.eu/publications/sustainable-finance-package-2023_en.

The NextGenerationEU Recovery Plan is an instrument that will raise more than €800 billion from the capital markets (in part by issuing green bonds) until the end of 2026, https://commission.europa.eu/strategy-and-policy/eu-budget/eu-borrower-investor-relations/nextgenerationeu_en.

“Next Generation EU—Green Bond Framework” dated 7 September 2021, SWD(2021) 242, to be found at: https://commission.europa.eu/system/files/2021-09/nextgenerationeu_green_bond_framework.pdf.

According to the European Commission, the NextGenerationEU green bond programme “will make the Commission the largest green bonds issuer in the world”. The framework for the NextGenerationEU green bond programme can be found at: https://commission.europa.eu/strategy-and-policy/eu-budget/eu-borrower-investor-relations/nextgenerationeu-green-bonds_en.

European Commission press release, 1 February 2023, The Green Deal Industrial Plan: Putting Europe's Net-Zero Industry in the Lead, available at: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_510. See also: https://www.reuters.com/business/sustainable-business/policy-watch-europe-beefs-up-green-deal-response-bidens-climate-subsidies-2023-02-03/

Many financial market participants with the ambition to be at the forefront of sustainable finance claim to have developed the first ever financial transaction of a certain type, resulting in claims to have acted on so-called market firsts for a company of a certain type, in a certain jurisdiction or with a certain characteristic. The Climate Bonds Initiative keeps a database of transactions that earmark proceeds for climate or environmental projects and have been labelled as “green” by the issuer. See: https://www.climatebonds.net/cbi/pub/data/bonds.

For example, investors complain that some green financial products are little more than marketing, as they intend to finance, e.g., through green bonds, a company in a determinedly brown sector or green projects which harm the immediate environment. See, e.g.: https://www.ft.com/content/178449a7-8897-4359-b23a-e85524c3e227.

For example, the Dutch Minister of Finance claimed that the green bonds issued by the Dutch government in 2019 would be dark green. See: https://english.dsta.nl/news/news/2019/04/08/issuance-20-year-sovereign-green-bond-on-21-may-2019.

The business of ESG rating agencies is booming and ESG ratings are increasingly of significant importance to the financial markets. As a result, an EU ESG Rating Regulation has been proposed. This is discussed in Sect. 12.4.3.

The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet through 17 Sustainable Development Goals (SDGs).

The Paris Agreement under the United Nations Framework Convention on Climate Change adopted on 12 December 2015 relates to one SDG specifically, i.e. Goal 13 which calls for urgent action to combat climate change and its impacts. The Paris Agreement officially entered into force on 4 November 2016, after 55 countries accounting for 55 per cent of the total global greenhouse gas emissions, deposited their instruments of ratification, acceptance or approval with the UN Secretary-General. As of October 2023, there are 195 parties to the Paris Agreement.

CBI, Climate Bonds Standard and Certification Scheme, available at: https://www.climatebonds.net/.

ICMA (June 2022), Green Bond Principles, available at: https://www.icmagroup.org/assets/documents/Sustainable-finance/2022-updates/Green-Bond-Principles_June-2022-280622.pdf.

ICMA (June 2023), Social Bond Principles, available at: https://www.icmagroup.org/assets/documents/Sustainable-finance/2023-updates/Social-Bond-Principles-SBP-June-2023-220623.pdf.

ICMA (June 2021), Sustainable Bond Guidelines, available at: https://www.icmagroup.org/assets/documents/Sustainable-finance/2021-updates/Sustainability-Bond-Guidelines-June-2021-140621.pdf.

ICMA (June 2023), Sustainability-linked Bond Principles, available at: https://www.icmagroup.org/assets/documents/Sustainable-finance/2023-updates/Sustainability-Linked-Bond-Principles-June-2023-220623.pdf.

ICMA (June 2023) Climate Transition Finance Handbook, available at: https://www.icmagroup.org/assets/documents/Sustainable-finance/2023-updates/Climate-Transition-Finance-Handbook-CTFH-June-2023-220623v2.pdf.

For example, ICMA (May 2020), Sustainable Finance, High-level Definitions, available at: www.ICMAgroup.org/assets/documents/Regulatory/Green-Bonds/Sustainable-Finance-High-Level-Definitions-May-2020-110520.pdf.

The most recent guidance and questions and answers date from June 2023. See: https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/guidance-handbook-and-q-and-a/.

ICMA, Sustainable Finance, High Level Definitions, page 5, available at: www.ICMAgroup.org/assets/documents/Regulatory/Green-Bonds/Sustainable-Finance-High-Level-Definitions-May-2020-110520.pdf.

Currently 140 Equator Principles Financial Institutions (EPFIs) in 39 countries have officially adopted the EPs, covering the majority of international project finance debt within developed and emerging markets, see: https://equator-principles.com/about/. The Equator Principles were last updated in July 2020, see: https://equator-principles.com/wp-content/uploads/2020/05/The-Equator-Principles-July-2020-v2.pdf.

The LMA has developed a Sustainable Lending Microsite dedicated to green, social and sustainability-linked loans, available at: https://www.lma.eu.com/sustainable-lending/documents#.

SLDs are derivatives providing for an amendment to payments to be made (by one or both parties) based on certain key performance indicators relating to ESG-goals. See, e.g.: https://www.isda.org/a/xvTgE/Sustainability-linked-Derivatives-KPI-Guidelines-Sept-2021.pdf.

Figures as reported by Bloomberg, see: https://www.bloomberg.com/news/articles/2023-01-05/sustainable-debt-issuance-fell-amid-rates-turmoil-esg-pushback?leadSource=uverify%20wall.

The LMA Sustainable Lending Microsite dedicated to green, social and sustainability-linked loans is available at: https://www.lma.eu.com/sustainable-lending/documents#.

See, e.g., https://www.icmagroup.org/assets/documents/Sustainable-finance/2023-updates/Sustainability-Linked-Bond-Principles-June-2023-220623.pdf.

See, e.g., https://www.isda.org/a/xvTgE/Sustainability-linked-Derivatives-KPI-Guidelines-Sept-2021.pdf.

See, e.g., the Sustainability-Linked_Loan_Principles published by APLMA, LMA and LSTA in February 2023, available at https://www.lsta.org/content/sustainability-linked-loan-principles-sllp/.

Commission Recommendation (EU) 2023/1425 of 27 June 2023 on facilitating finance for the transition to a sustainable economy C/2023/3844, OJ L 174, 7.7.2023, pp. 19–46, also available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023H1425.

For the CSRD, see also Sect. 12.3.3.

See footnote 37.

Section 9 of the EC recommendations set out in footnote 37.

See: https://www.bourse.lu/green.

The Dow Jones Sustainability World Index is constituted of companies that are weighted in accordance with ESG characteristics, including Carbon to Value Invested, Carbon to Revenue, Weighted Average Carbon Intensity and Fossil Fuel Reserve Emissions. See: https://www.spglobal.com/spdji/en/indices/equity/dow-jones-sustainability-world-index/#data.

S&P Global, ESG in Credit Ratings, see: https://www.spglobal.com/ratings/en/products-benefits/products/esg-in-credit-ratings; Moody’s, ESG & Climate Risk, see: https://esg.moodys.io/insights-analysis#insights-MIS.

For more details on ESG rating agencies, see Sect. 12.4.3.

The SFDR and the Taxonomy Regulation are discussed in Sect. 12.3 and elsewhere in this book.

For a detailed discussion, see Chapter 5 by A. M. Pacces.

Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement (investment strategies).

Recital 15 of the Shareholders Engagement Directive.

Capital requirements are set out in the Capital Requirements Directive (Directive 2013/36/EU) and the Capital Requirements Regulation (Regulation (EU) No 575/2013) and legislative instruments pursuant thereto. CRD/CRR refer to sustainability of policies and practices of financial institutions, underlining long-term considerations.

The Corporate Sustainability Due Diligence Directive will be discussed further in Sect. 12.4.1 of this chapter.

NGFS members include central banks and financial supervisors from all five continents.

For a further discussion of the role of supervisors in the financial markets, see Chapter 11 by A. L. Riso.

See, e.g., the NGFS Progress Report on the Guide to Supervisors of October 2021, available at: https://www.ngfs.net/sites/default/files/progress_report_on_the_guide_for_supervisors_0.pdf.

ECB, Climate Change and the ECB, see: https://www.ecb.europa.eu/ecb/orga/climate/html/index.en.html.

ECB, Guide on climate-related and environmental risks, Supervisory expectations relating to risk management and disclosure, see: https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.202011finalguideonclimate-relatedandenvironmentalrisks~58213f6564.en.pdf.

ECB, ECB Banking Supervision: SSM Supervisory Priorities for 2023–2025, see: https://www.bankingsupervision.europa.eu/banking/priorities/html/ssm.supervisory_priorities202212~3a1e609cf8.en.html.

The ECB has made clear that the results of its climate scenario analysis and stress testing explicitly feed into banks’ capital adequacy. See: ECB, Walking the talk, Banks gearing up to manage risks from climate change and environmental degradation. Results of the 2022 thematic review on climate-related and environmental risk, November 2022, available at: https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.thematicreviewcerreport112022~2eb322a79c.en.pdf. In January 2023, the US Federal Reserve Board launched a pilot climate scenario analysis exercise designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks. See the press release of the US Federal Reserve Board, available at: https://www.federalreserve.gov/publications/files/csa-instructions-20230117.pdf.

On 8 December 2022, the Basel Committee on Banking Supervision issued responses to frequently asked questions (FAQs) to clarify how climate-related financial risks may be captured. The responses are consistent with the Basel Committee's Principles for the effective management and supervision of climate-related financial risks. See: https://www.bis.org/bcbs/publ/d543.htm. Meanwhile, the Dutch Central Bank is concerned that banks may be vulnerable in relation to exposures to corporate clients in CO2 intensive sectors that are slow to transition to sustainability and face performance issues as a result of more stringent government policies, legal liability claims and consumer preferences. The Dutch Central Bank has argued in favour of more stringent capital requirements, such as concentration limits in the credit portfolio’s of banks. DNB Bulletin, see: https://www.dnb.nl/algemeen-nieuws/dnbulletin-2022/banken-lopen-risico-door-trage-verduurzaming-van-bedrijven/.

Commission Implementing Regulation (EU) 2022/2453, amending Commission Implementing Regulation (EU) 2021/637 which specifies uniform disclosure formats and associated instructions for disclosures required under the Capital Requirements Regulation (EU) No. 575/2013, as amended by Regulation (EU) 2019/876 (CRR).

ESMA (July 2019), Final Report Guidelines on Disclosure Requirements Applicable to Credit Ratings, available at: https://www.esma.europa.eu/sites/default/files/library/esma33-9-320_final_report_guidelines_on_disclosure_requirements_applicable_to_credit_rating_agencies.pdf.

See: https://www.esma.europa.eu/sites/default/files/library/esma80-195-1352_cra_esg_disclosures.pdf.

See Sect. 12.4.3.

See: https://www.esma.europa.eu/press-news/esma-news/esma-and-ncas-look-marketing-financial-products and https://www.esma.europa.eu/press-news/esma-news/esma-and-ncas-assess-disclosures-and-sustainability-risks-investment-fund.

ESMA, Public Statement on Sustainability disclosure in prospectuses, dated 11 July 2023, ESMA32-1399193447-441, available at: https://www.esma.europa.eu/document/statement-sustainability-disclosure-prospectuses.

The statement by ESMA follows a position paper dated 3 April 2019, in which the Dutch Authority for the Financial Markets and the French Autorité des Marchés Financiers (AMF) published their supervisory practices for prospectuses for green bonds. AFM (April 2019), Sustainable Finance: The AFM and AMF Publish a Common Position on the Content of the Prospectus for Green Bonds, see: https://www.afm.nl/en/nieuws/2019/apr/transparantie-prospectus-groene-obligaties.

The EU rules on non-financial reporting apply to large public interest companies with more than 500 employees. This covers approximately 6,000 large companies and groups across the EU, including listed companies, banks, insurance companies and other companies designated by national authorities as public-interest entities. See: https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/non-financial-reporting_en.

Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups.

The European Commission guidelines on non-financial reporting, first published on 26 June 2017 (last update on 18 June 2019), available at: https://ec.europa.eu/info/publications/non-financial-reporting-guidelines_en#climate.

See below in Sects. 12.3.4. and 12.3.5.

The Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464) was published in the EU Official Journal on 16 December 2022, PbEU 2022 L 322.

See: https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.

The ESRS can be found at https://finance.ec.europa.eu/news/commission-adopts-european-sustainability-reporting-standards-2023-07-31_en.

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088.

For an overview of the work done and the work being undertaken, see: https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en.

The various delegated acts under the Taxonomy Regulation include the following: Delegated Act on sustainable activities for climate change adaptation and mitigation objectives, OJ 9 December 2021 (applicable since January 2022), Delegated Act supplementing Article 8 of the Taxonomy Regulation, OJ 10 December 2021 (applicable since January 2022), Complementary Climate Delegated Act, OJ 15 July 202 applicable since January 2023). Commission Delegated Regulation of 27.6.2023 establishing additional technical screening criteria for determining the conditions under which certain economic activities qualify as contributing substantially to climate change mitigation or climate change adaptation and for determining whether those activities cause no significant harm to any of the other environmental objectives, and Commission Delegated Regulation of 27.6.2023 establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, or to the protection and restoration of biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives. This delegated regulation also amends Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities.

The Taxonomy Regulation is discussed in more detail in Chapter 13 by Ch. V. Gortsos and D. Kyriazis.

Examples of activities in economic sectors that are defined in the Delegated Acts under the Taxonomy Regulation (and that are therefore “taxonomy eligible”) include: Transport, Manufacturing, Construction and real estate activities, Disaster risk management, Water supply, sewerage, waste management and remediation, Information and communication, Professional, scientific and technical activities, Environmental protection and restoration activities, Accommodation activities.

Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector.

The Sustainable Finance Disclosure Regulation is discussed in more detail in Chapter 16 by D. Busch.

See: European Commission notice on the interpretation and implementation of certain legal provisions of the EU Taxonomy Regulation and links to the Sustainable Finance Disclosure Regulation, 2023/C 211/01, OJ C 211, 16.6.2023, pp. 1–5.

For example, banks have started to impose general information undertakings in loan documentation that the borrower will provide ESG relevant information at request.

Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014.

Regulation (EU) 2019/2089 of the European Parliament and of the Council of 27 November 2019 amending Regulation (EU) 2016/1011 as regards EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks.

Commission Delegated Regulation supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks and Commission Delegated Regulation supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published.

See: https://finance.ec.europa.eu/sustainable-finance/disclosures/eu-labels-benchmarks-climate-esg-and-benchmarks-esg-disclosures_en.

Directive 2014/65/EU of 15 May 2014 on markets in financial instruments (recast).

The European Commission’s Delegated Regulation (EU) 2021/1253.

Directive 2009/65/EC of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (recast) and Directive 2011/61/EU of 8 June 2011 on Alternative Investment Fund Managers.

Directive (EU) 2016/97 of 20 January 2016 on insurance distribution (recast).

The various documents constituting the Sustainable Finance Package are available at: https://finance.ec.europa.eu/publications/sustainable-finance-package-2023_en.

Section 12.3 discusses the existing legal and regulatory framework and the various amendments it has been subject to.

See: Proposal for a Directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937, COM/2022/71 final.

Articles 20 and 22 of the proposed CSDDD.

See, e.g., Financial Times, 1 December 2022, EU Looks to Exclude Banks and Funds from Sustainability Rules, available at: https://www.ft.com/content/c196ce1a-59b8-4423-b48e-36943b8f0502 and also Reuters, 1 June 2023, EU parliament backs company checks on suppliers for human rights abuses, available at: https://www.reuters.com/sustainability/eu-parliament-backs-company-checks-suppliers-human-rights-abuses-2023-06-01/. The discretions that EU Member States may or may not exercise will affect their attractiveness as a hub for financial institutions. The draft CSDDD is available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022PC0071.

European Commission, Targeted Consultation Document. Establishment of an EU Green Bond Standard, see: https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/documents/2020-eu-green-bond-standard-consultation-document_en.pdf.

See the EC’s Proposal for a Regulation on European Green Bonds (COM/2021/391 final), available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021PC0391.

The text of the proposed regulation on EU Green Bonds, which is awaiting publication at the time of closure of this manuscript, is available at: https://data.consilium.europa.eu/doc/document/PE-27-2023-INIT/en/pdf. See also: https://ec.europa.eu/commission/presscorner/detail/en/mex_23_1301 and https://www.consilium.europa.eu/en/press/press-releases/2023/10/24/european-green-bonds-council-adopts-new-regulation-to-promote-sustainable-finance/#:~:text=European%20green%20bonds%20will%20be,neutral%2C%20resource%2Defficient%20economy.

See, for example, https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/EU-GBS-consultationICMA-Final-Response021020.pdf.

Proposal for a Regulation of the European Parliament and of the Council on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities, COM/2023/314 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023PC0314.

100

Regulation (EU) No 462/2013 of the European Parliament and of the Council of 21 May 2013 amending Regulation (EC) No 1060/2009 on credit rating agencies, OJ L 146, 31.5.2013, pp. 1–33.

101

Article 3 of the ESG Rating Regulation Proposal.

102

ESG rating providers in the EU must be either, (a) an ESG rating provider authorised by ESMA as referred to in Article 5, or (b) a party having the benefit of an implementing decision as referred to in Article 9, or, (c) a party that has obtained an authorisation for endorsement as referred to in Article 10, or (d) a party that has obtained a recognition as referred to in Article 11, in each case of the ESG Rating Regulation Proposal.

103

Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC.

104

Article 22 of the ESG Rating Regulation Proposal.

105

Article 25 of the ESG Rating Regulation Proposal.

106

Article 34 of the ESG Rating Regulation Proposal.

107

For the ICMA guidance in respect of secured bonds and securitisation bonds, see: https://www.icmagroup.org/assets/documents/Sustainable-finance/2023-updates/Secured-Sustainable-Bonds-Related-questions-June-2023-220623.pdf.

108

EBA Report, Developing a framework for sustainable securitisation, EBA/REP/2022/06.

109

See: https://susproc.jrc.ec.europa.eu/product-bureau//product-groups/432/home.

110

See: https://www.eba.europa.eu/esas-launch-joint-call-evidence-greenwashing.

111

See: https://www.esma.europa.eu/press-news/esma-news/esas-put-forward-common-understanding-greenwashing-and-warn-risks.

112

See, e.g. ESMA, Progress Report on Greenwashing, dated 31 May 2023, ESMA30-1668416927-2498, available at: https://www.esma.europa.eu/sites/default/files/2023-06/ESMA30-1668416927-2498_Progress_Report_ESMA_response_to_COM_RfI_on_greenwashing_risks.pdf.

113

Ibid., page 6.

114

115

Notre Affaire à Tous Les Amis de la Terre, and Oxfam France v. BNP Paribas, which case is discussed also in the “Come hell or high water” speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, delivered on 4 September 2023, available at: https://www.bankingsupervision.europa.eu/press/speeches/date/2023/html/ssm.sp230904~1ae5fa553e.en.html.

116

The Network for Greening the Financial System has published two reports on climate litigation. The first provides an overview of climate litigation in the financial sector. The second sets out prudential supervisory aspects. Network for Greening the Financial System, Technical document, Climate-related litigation: recent trends and developments, dated September 2023, available at https://www.ngfs.net/sites/default/files/medias/documents/ngfs_report-on-climate-related-litigation-recent-trends-and-developments.pdf. Network for Greening the Financial System, Technical document, Report on micro-prudential supervision of climate-related litigation risks, dated September 2023, available at: https://www.ngfs.net/sites/default/files/medias/documents/ngfs_report-on-microprudential-supervision-of-climate-related-litigation-risks.pdf.

117

Network for Greening the Financial System, Technical document, Climate-related litigation: recent trends and developments, dated September 2023, page 2, available at the website mentioned in the previous note.

118

The same NGFS report (on page 7) mentioned in the note above refers to litigation brought by ClientEarth against (i) the Belgian central bank NBB for failing to take climate considerations into account in purchasing corporate bonds under the EU's corporate sector purchase programme (CSPP), which case was discontinued following the ECB’s decision to amend the CSPP to take into account climate-related considerations, and (ii) the UK’s Financial Conduct Authority for approving the prospectus of an oil and gas company which allegedly does not adequately outline the climate change risk to which the company is exposed.

Titel: Sustainable Finance: An Overview of ESG in the Financial Markets
verfasst von: Marieke Driessen
Verlag: Springer International Publishing
Buch: Sustainable Finance in Europe
Print ISBN: 978-3-031-53695-3

Electronic ISBN: 978-3-031-53696-0

Copyright-Jahr: 2024
DOI: https://doi.org/10.1007/978-3-031-53696-0_12

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