All financial institutions must disclose sustainability risks and impacts, MEPs agreed

    The European Parliament’s Committee of Economic and Monetary Affairs endorsed on Monday (5 November) a decision that makes it mandatory for all financial market participants, including banks, to disclose sustainability risks and impacts of their portfolio, a move that NGOs say brings the EU one step further in greening its financial system.

    “Monday’s vote has set a very high level of political ambition for the next steps of the Sustainable Finance Action Plan,” said Eleni Choidas, European policy manager at ShareAction, a London-based NGO promoting responsible investment.

    WWF welcomed the high level of ambition demonstrated by the MEPs, explaining that such disclosure was fundamental to ensure that investors make better-informed decisions about the environmental and social risks they are exposed to, and the impacts they create with their investments.