European Commission should avoid creating barriers to market development, says EFAMA
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European Commission should avoid creating barriers to market development, says EFAMA 09 March 2018Brussels Reporter: Jenna Lomax
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The European Fund and Asset Management Association (EFAMA) has said that an EU agenda on sustainable finance 鈥渟hould focus on a market driven approach鈥� and avoid creating any 鈥渦nintended barriers to market development鈥�.
EFAMA was commenting on European Commission鈥檚 action plan on financing sustainable growth, in a statement released on 8 March.
It said that market driven approach 鈥渋s crucial, given the constant evolution of products, practices and end-investor demands鈥�.
EFAMA added: 鈥淎ny legislative initiatives need to be reviewed carefully to ensure that positive market-led trends continue to thrive.鈥�
However, EFAMA mostly agreed with other areas of the plan, which included a decision to explore a sustainable finance strategy for the EU.
EFAMA said: 鈥淭he absence of a common language for sustainable assets and the lack of consistent and comparable corporate disclosure on sustainability have long been challenges in the integration of sustainability in the investment decision-making process.鈥�
EFAMA added that because of this, it welcomes 鈥渕any aspects of the action plan, notably the commitment to strengthen sustainability disclosure, as well as the proposal on an EU taxonomy.鈥�
However, EFAMA disagreed with the action plan鈥檚 statements regarding asset managers not systematically considering sustainability in the investment process.
It stated: 鈥淓vidence suggests that integration of these factors has increased in the market over recent years. By embracing sustainability as an integral part of the investment process and supporting the development of responsible investment in all of its forms, asset managers play a pivotal role in supporting sustainable economic growth and long-term financing of the European economy.鈥�
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