Sustainability: Europe Leads the Way – The World Follows

Sustainability: Europe Leads the Way – The World Follows

If it is also a question of activating the financial sector for climate protection, Europe is seen as a pioneer in this field. However, other government authorities are now following suit, as Catherine De Coninck-Lopes, ESG officer at Invesco, emphasises. Regarding ESG issues, there is an increasing convergence towards global standards in terms of regulation.

This development can be seen in the publication „ESG Regulatory News“. Currently, development is concentrating on four points: Firstly, the management and supervisory practices and strategies relating to ESG risks, which are summarised under the heading of Governance, and secondly, the integration of ESG criteria into the risk and investment processes of the relevant financial institutions.

In addition, transparency in the publication of climate risks and the analysis of scenarios to assess the consequences of ESG risks play an important role. Overall, De Coninck-Lopez notes that Europe continues to lead the way in embedding sustainability issues in the regulatory framework of the financial sector, but global regulators are also increasingly focusing on ESG issues.

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