Recent initiatives reflect the growing attention given by regulators and the industry to the social and environment impact of the financial services sector.
On 14 December 2016, the Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosures (TFCFD) published its final report providing recommendations to increase transparency on climate-related risks. The TFCFD considers that climate-related shocks could have severe financial consequences and trigger sudden losses in asset values. The report highlights the need for the financial sector to better take into account the potential risks associated with climate change and the transition to a low carbon economy. In parallel, the TFCFD underlines that such changes also bring significant opportunities for organizations focused on climate change mitigation and adaptation solutions.
In the framework of CMU, the Commission recently set up a High-Level Expert Group on sustainable finance. Composed of various stakeholders, this group is due to deliver recommendations on how to integrate sustainability considerations into the European financial framework by the end of 2017. Referring to the Paris Agreement and to the 2030 Agenda for sustainable development, the Commission emphasizes the need to include the financial sector in a broader strategy towards sustainable growth. The initiative also aims at exploring and anticipating climate-related risks in order to enhance financial stability.