Irish Funds responds to consultation on the EU’s renewed sustainable finance strategy15 July 2020
Irish Funds has responded to the European Commission’s consultation on the renewed sustainable finance strategy.
The response addresses questions relating to:
- Strengthening the foundations for sustainable finance
- Increasing opportunities for citizens, financial institutions and corporates to enhance sustainability
- Reducing and managing climate and environmental risks
In terms of the opportunities associated with sustainable finance, Irish Funds has highlighted strong investor demand for and interest in ESG products, the European Green Deal and the correlation between ESG products and return. The way that these products are managed, the long-term value they add, their resilience and performance are all correlated, which validates the mainstreaming of sustainability.
In terms of the challenges associated with mainstreaming sustainability, Irish Funds has noted the availability of high quality, consistent ESG data reporting, the ability of investee companies and the wider economy to transition (as financial services do not operate in isolation from the real economy) and the practical implementation of the EU sustainable finance regime. In this regard we have noted that the sequencing and timeframes of requirements need to be pragmatic with enough implementation time allowed after there is sufficient clarity on the final rules.