United for the Planet: Investors Unite with Joint Statement on Omnibus Legislation, Emphasizing Urgent Action for a Sustainable Future

Despite Trump's dismissal of science and climate concerns, European investors are taking a bold step forward, choosing to strengthen their commitment to sustainability and climate action.

European Investors Unite to Defend Sustainable Finance Framework, with a coalition of over 200 European investors, collectively managing €6.6 trillion in assets, has issued a joint statement urging the European Commission to preserve the integrity and ambition of the EU's sustainable finance framework. The investors, representing some of the continent's largest assets owners and managers, are concerned that the Commission's forthcoming Omnibus package could undermine the framework's core principles and create regulatory uncertainty.

The EU's sustainable finances framework, comprising the EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDDD), is widely regarded as a cornerstone of the bloc's efforts to promote sustainable economic growth and mitigate climate change. The framework provides investors with critical information and tools to manage environmental, social, and governance (ESG) risks and opportunities, and to allocate capital towards sustainable investments.

However, the investors warned that the Commission's proposed revisions to the frameworks, as part of the Omnibus package, could have far-reaching and unintended consequences. Specifically, they caution that, the reopening of the framework's core regulations could create regulatory uncertainty, undermine investor’s confidence and jeopardize the EU's long-term economic competitiveness.

In A Targeted Approach to Refining the Framework; In their joint statement, the investors propose a targeted approach to refining the framework, focusing on technical improvements and implementation guidance rather than wholesale revisions. Specifically, they recommend:

•Streamlining technical standards based on industry feedback
•Providing clear implementation guidance, including sector-specific advice
•Ensuring interoperability between European and international reporting standards
•Leveraging digital solutions to reduce reporting burdens and improve data harmonization

Leadership Voices: A Call to Action

Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change (IIGCC), emphasized the importance of maintaining the framework's core principles while addressing implementation challenges. "By preserving the integrity and ambition of the EU's sustainable finance framework, we can ensure that investors have the tools and information they need to support a sustainable and prosperous net-zero economy," she said.

Aleksandra Palinska, Executive Director of the European Sustainable Investment Forum (Eurosif), stressed that private capital is essential to bridging the EU's estimated annual investment gap of €800 billion. "Investors require high-quality, reliable, and comparable corporate disclosures to make informed decisions and allocate capital towards sustainable investments," she noted.

Nathan Fabian, Chief Sustainable Systems Officer at the Principles for Responsible Investment (PRI), warned that wholesale changes to the framework could create uncertainty and undermine the EU's sustainable finance leadership. "We urge the Commission to prioritize stability and consistency in the framework, and to focus on targeted improvements that support investors and companies in their sustainability efforts," he said.

Finally; As the European Commission prepares to introduce the Omnibus package, investors, policymakers, and stakeholders must unite to defend the EU's sustainable finance framework. By preserving the framework's integrity and ambition, we can ensure that investors have the tools and information they need to support a sustainable and prosperous net-zero economy, and that the EU remains a global leader in sustainable finance.

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