The Roadmap to Sustainable Finance: ESG, EU Regulations, and Impact
The transition to a more sustainable and environmentally friendly financial system has become one of the principal objectives of the European Union (EU). In this endeavour, the European Securities and Markets Authority (ESMA) plays a pivotal role by striving to ensure that the European financial markets actively support and facilitate this shift. This involves the integration of environmental, social, and governance (ESG) factors into the markets’ core activities.
Yet, the increasing demand for ESG investments presents significant challenges. Regulatory authorities must carefully navigate the rapidly evolving regulatory landscape to prevent inconsistent application across markets. Essential to this effort is the establishment of sufficient transparency and comparability regarding the actual sustainability impact of financial products offered, and the sustainability profiles of institutions. These aspects underpin the EU Regulations formulated around sustainable finance.
Throughout this article, the SALVUS Regulatory Compliance team explores the term Sustainable Finance while examining the origins of the European Green Deal. Moreover, the team identifies regulatory obligations stemming from the Capital Requirements Regulation (CRR), the Investment Firms Regulation (IFR), and the Markets in Crypto Assets (MiCA) Regulation. The article focuses on the following critical areas:
- The objectives of Sustainable Finance
- The European Green Deal
- CRR & IFR Prudential Disclosures
- Considerations for Crypto-Asset Service Providers
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Find the full article here: https://salvusfunds.com/2023/09/22/the-roadmap-to-sustainable-finance-esg-eu-regulations-and-impact/
