Ομιλία: Μιχάλης Σπανός, Founder & Managing Director, Global Sustain Τίτλος παρουσίασης: "EU Sustainable Finance Framework and Corporate Governance”

1. The EU Sustainable Finance Framework
and Corporate Governance
Michael Spanos
Founder & Managing Director
Global Sustain Group

2. About Global Sustain
Lead sustainable change for a better future
An international sustainability management consulting firm established in 2006,
with experience in:
• Sustainability
• Compliance & Reporting
• Strategy & Risk
• ESG Responsible Investing
Global Sustain Group is community driven with 400+ organizations as members.
Headquarters are in London, with companies in Berlin and in Athens, an office in
Brussels, and affiliates in New York and Cyprus.
www.globalsustaingroup.com
www.globalsustain.org

3. ESG Frameworks, Initiatives and Standards
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The Principles for Responsible Investment (PRI) Framework.
The UNEP Finance Initiative Principles for Responsible Banking.
The 2014/95/EU Non - Financial Disclosure Directive (2014).
TheTask Force for Climate-related Financial Disclosures (2015).
The EU Capital Markets Union Initiative. (2015).
The EU Shareholders Rights Directive (2017).
The European Supervisory Authorities (ESAs) package (2017).
The World Federation of Stock Exchanges (WFE) ESG recommendations and guidance for its members.
The GRI Reporting Standards.
The European Commission Sustainable Finance Framework (2019)

4. European Union Sustainable Finance
ec.europa.eu
4

5. UN 2030 Agenda and Sustainable Development Goals
and the Paris Climate Agreement need financing.
To achieve the EU’s 2030 targets agreed in Paris,
including a 40% cut in greenhouse gas emissions, the
has to fill an investment gap estimated at 180 billion
EUR per year.
The EU provides impetus to help attract the required
investments with the European Fund for Strategic
Investments and other initiatives. However, the scale
of the investment challenge is beyond the capacity of
the public sector alone.
The financial sector has a key role to play in reaching
those goals.
Action Plan
Financing Sustainable Growth
Action Plan: Financing Sustainable Growth

6. Definition: Sustainable Investments ‘mean any of the following or a combination of any of the following:
i. investments in an economic activity that contributes to an Environmental objective, including an
environmentally sustainable investment as defined in the Regulation on the establishment of a
to facilitate sustainable investment;
ii. investments in an economic activity that contributes to a Social objective, and in particular an
that contributes to tackling inequality, an investment fostering social cohesion, social integration and
labour relations, or an investment in human capital or economically or socially disadvantaged
communities;
iii. investments in companies following good Governance practices, and in particular companies with
management structures, employee relations, remuneration of relevant staff and tax compliance;
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Defining Sustainable Investments
Source: REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on disclosures relating to
sustainable investments and sustainability risks and amending Directive (EU) 2016/2341 (24.5.2018) -
COM(2018) 354 final

7. ESG Factors
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Environmental (E) Social (S) Governance (G)
Energy Efficiency Employee Compensation Board Independence
Carbon Emissions Benefits Director Compensation
GHG Emissions Staff Turnover Shareholder Voting
Biodiversity Employee Health Litigation Risks
Water Usage Safety Practises and Corruption/ Bribery policies
Natural Resource Use Training Hours Codes of Conduct
Recycling Practises Diversity and Targets Transparency Policies
Waste Disposal Local Community Support Suppliers Code
(Sources: EU, PRI, Global Sustain)
Financial market participants shall publish written policies on the integration of sustainability
risks in the investment decision-making process on their websites.

8. 1. Establish a unified EU classification system of sustainable economic activities ('taxonomy’).
2. Improve disclosure requirements on how investors integrate environmental, social and governance (ESG)
factors in their risk processes.
3. Create a new category of benchmarks which will help investors compare the carbon footprint of their
investments.
4. Protecting private investors by avoiding risks of green-washing.
5. Providing the basis for further policy action in the area of sustainable finance, including standards, labels,
and any potential changes to prudential rules.
Additional objectives to amend:
1. the Markets in Financial Instruments Directive (MiFID II) and
2. the Insurance Distribution Directive.
to include ESG considerations into the advice that investment firms and insurance distributors offer to
individual clients.
Objectives of the Legislative Proposals

9. Proposal for a regulation on the establishment of a framework to facilitate sustainable investment.
Text of the proposal, impact assessment and summary of the impact assessment
Proposal for a regulation on disclosures relating to sustainable investments and sustainability risks and amending
Directive (EU) 2016/2341
Text of the proposal, impact assessment and summary of the impact assessment
Feedback statement on the public consultation on institutional investors and asset managers' duties regarding
sustainability
Proposal for a regulation amending Regulation (EU) 2016/1011 on low carbon benchmarks and positive carbon
impact benchmarks.
Text of the proposal, impact assessment and summary of the impact assessment
Press release on political agreement on a new generation of low-carbon benchmarks
Draft amendments to delegated acts.
Commission draft delegated regulation amending Regulation (EU) 2017/565 supplementing Directive 2014/65/EU
as regards organisational requirements and operating conditions for investment firms and defined terms for the
purposes of that directive
Commission draft delegated regulation amending Delegated Regulation (EU) 2017/2359 with regard to
environmental, social and governance preferences in the distribution of insurance-based investment products
Legislative Proposals

10. EU Sustainable Finance Framework documents (633 pages in total):
1. An EU classification system – the so-called EU taxonomy – to determine whether an economic activity is
environmentally sustainable (414 pages +25 pages the supplementary report).
2. An EU Green Bond Standard (78 pages).
3. Methodologies for EU climate benchmarks and disclosures for benchmarks (66 pages).
4. Guidance to improve corporate disclosure of climate-related information (50 pages) including alignment to
the Non-Financial Reporting (NFR) Directive andTCFD (Task Force for Climate-related Financial Disclosures).
The Grand Design for the Financial System

11. Regulation by the Market for the Market

13. 13
Alignment of Frameworks

14. Putting it all together

15. Global Sustain & Sustainable Finance

16. 4th ESG Investments & Sustainable Finance Forum Series 2019
01.10.2019, Berlin
www.esgconference.com
In cooperation with

17. www.sustainabilityforum.gr

18. Contact
Michael Spanos
Managing Director
Global Sustain Group
Tel. +30 6937757383
michael.spanos@globalsustain.org
www.globalsustain.org
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