Breaking news - Sustainable Finance - June 2024

What’s new in sustainable finance?

A report with the key messages and points of discussion from the financial and sustainability reporting topics covered at the April 2024 IFASS (International Forum of Accounting Standard Setters) meeting has been issued. Important decisions were made regarding IFRS standards and transition plans to promote green finance, emphasizing improved disclosure standards and global standards compatibility.

In feedback to the European Commission on the SFDR, the ESAs recommend introducing a classification system for sustainable products, simplifying categories with clear criteria, and using a sustainability indicator to display environmental and social characteristics on a scale. They also suggest testing these categorizations with consumers, reexamining the coexistence of SFDR and EU taxonomy concepts, ensuring disclosures meet investor needs, considering inclusion of more products under SFDR, and evaluating a framework for assessing the sustainability of government bonds.

The ACPR and AMF released their delayed joint report on the climate commitments of Paris financial institutions, highlighting ongoing insufficient progress and marking the end of this reporting format without specifying future changes. Despite the growing number of climate commitments, only a third of banks' commitments are accompanied by verifiable data, and both supervisors acknowledge that the ambitious but varied nature of these commitments complicates accurate evaluation.

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