Daily CSR
Daily CSR

Daily CSR
Daily news about corporate social responsibility, ethics and sustainability

Economic Future Of Europe Pursues Sustainable Investments


The new financial strategy in Europe involves sustainable investment practices.

Dailycsr.com – 09 June 2016 – On a worldwide scale, investment has infused in it innovation and “sustainable infrastructure” as an “important strategy” which also helps in creating jobs. The Paris COP21 summit declared that global markets need to adapt to sustainability besides dealing with “environmental concerns” as the “core of future development”.
In fact, Vikas Vij informs that:
“...sustainability is now regarded as an essential component of a recovery process that is more stable and efficient, and better serves the real economy”.
Moreover, Vij writes that according to the executive director at UN’s “Environment Program”, Achim Steiner:
“Europe’s financial system is on the move toward a low-carbon, green economy, backed by individuals as well as institutions. Europe’s financial institutions, most notably its pension funds and insurance companies, are recognizing the long-term benefits of putting sustainability at the heart of their business models. Central banks and regulators are realizing that they have critical role to make this reallocation of capital as orderly as possible”.
Many institutions have also joined in this endeavour, while the “Governor Mark Carney” issued his “first assessment” which defines “climate” for the “insurance sector”. Additionally, Carney has also initiated a “new industry-led task force” which is working towards improving climate related disclosure which would help the investors to be informed rightly for taking responsible decisions.
Walking in the same path, France has also enforced the pioneering “path-breaking Energy Transition law” which became effective sometimes last year. As per the said law the investors need to disclose their transaction details. Moreover, new product labels have been introduced in the market which indicate how “sustainability-oriented” the respective product is, acting as a guide to the consumer to push them towards a sustainable purchase habit.
Several countries like Germany, Portugal and Spain, already provide examples of such legal practices, while Italy has come up with “a national dialogue on sustainable finance” and Sweden introduced “a new policy goal” which links finance and sustainable development together.
European Union too has approved over forty two projects through the “European Fund for Strategic Investment”, which covers areas like “energy and climate action, environmental and resource efficiency, transport, and research and development”. Vij also adds:
“A growing number of countries realize the need to link finance more clearly with social and environmental drivers of long-term prosperity. China, for example, has made green finance part of its new 13th Five Year Plan, and is seeking to raise $400 billion in green investments each year”.