16 July 2020
The European Banking Authority (EBA) published today its reponse to the European Commission’s consultation on a Renewed Sustainable Finance Strategy. The EBA is committed to ensuring the resilience and long-term sustainability of banking sector activities and welcomes the Commission’s efforts to support the transition towards a more sustainable, and resilient EU economy. The EBA looks forward to the adoption of the Commission’s Renewed Sustainable Finance Strategy and stands ready to contribute to its objectives set out in the European Green Deal.
In its response, the EBA agrees with a wide range of possible EU-level actions to support financing of the transition to a more sustainable European economy while appropriately managing the ESG risks in the financial sector and ensuring high standards of consumer protection. Given their unique position in facilitating capital flows through their lending, investment and advisory roles, credit institutions also have a key role to play in mobilising funds towards sustainable investments.
In support of the European Commission’s overall proposed initiatives the EBA highlights actions where further progress is particularly needed, notably in the following areas:
In April 2020, the European Commission published a consultation on the Renewed Sustainable Finance Strategy, which builds on the outcome of the work carried out in accordance with the Action Plan on Financing Sustainable Growth published in March 2018.
The response of the EBA to this consultation has been prepared pursuant to Article 1 (3) of the EBA's Regulation (as amended on 1 January 2020), which mandates the EBA to take into account sustainable business models and the integration of ESG factors in the field of activities of credit institutions, financial conglomerates, investment firms, payment institutions and e-money institutions[, to the extent necessary to ensure the effective and consistent application of its mandates.