24 Amendments of Fulvio MARTUSCIELLO related to 2018/0178(COD)
Amendment 124 #
Proposal for a regulation
Title 1
Title 1
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the establishment of a framework to facilitate sustainable finvestmentance (Text with EEA relevance)
Amendment 140 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8 a) The scale of the challenge requires gradually moving the entire financial system and the economy to a position where they are able to function on a sustainable basis. To that end, sustainable finance needs to be brought into the mainstream, and a consideration needs to be made of sustainability impact in respect of financial products and services marketed as sustainable.
Amendment 144 #
Proposal for a regulation
Recital 9
Recital 9
(9) Offering financial products which pursue environmentally and economically sustainable objectives is an effective way of gradually channelling private investments into sustainable activities. National requirements for marketing as sustainable investments financial products and corporate bonds, in particular requirements set out to allow the relevant market actors to use a national label, aim to enhance investor confidence, to create visibility and to address concerns about “greenwashing”. Greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment-friendly, when in fact it does not meet basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it is likely that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainableCurrently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. If such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportunities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria for determining whether an economic activity is environmentally and economically sustainable should therefore gradually be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.
Amendment 152 #
Proposal for a regulation
Recital 10
Recital 10
(10) Moreover if market participants do not provide any explanation to investors ofdisclose how the activities they invest in contribute to environmental objectives, or if they use different concepts in their explanation ofmetrics and criteria for determining what is a ‘sustainable’ economic activity, investors will find it disproportionately burdensome to check and compare these different financial products. It has been found that this discourages investors from investing into greensustainable financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment- friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare the environment-friendlyal impact of investment opportunities across borders. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.
Amendment 157 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10 a) The indicators should be harmonised based on existing undertakings, such as the work of the Commission, the European Environmental Agency, and the OECD, among others, and should capture environmental impact on CO2 and other emissions, biodiversity, production of waste, the use of energy and renewable energy, raw materials, water, and direct and indirect land use, as laid out in the Commission monitoring framework on the circular economy (COM/2018/29 final), the EU action plan for the Circular Economy (COM/2015/0614 final) and in the European Parliament's resolution of 9 July 2015 on resource efficiency: moving towards a circular economy (2014/2208(INI)). Furthermore the indicators should be designed also taking into account the recommendations of the Support to Circular Economy Financing Expert Group of the European Commission. The Commission should evaluate how to integrate the work of this expert group with the TEG. Indicators should take into account internationally recognized sustainable standards.
Amendment 164 #
Proposal for a regulation
Recital 13
Recital 13
(13) A Union classification of environmentally sustainable-wide indicators determining the environmental impact of economic activities should enable the development of future Union policies, including Union- wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for considering investments asassessing the environmentally sustainableility of investments, based on uniform criteria for determining the environmentally sustainableility of economic activities, are necessary as a reference for future Union legislation aiming at enabling those investments and common indicators for assessing the environmental impact of investments, are necessary as a reference for future Union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact.
Amendment 167 #
Proposal for a regulation
Recital 13
Recital 13
(13) A Union classification of environmentally and economically sustainable economic activities should gradually enable the development of future Union policies, including Union- wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for considering investments as environmentally sustainable investments as such, based on uniform criteria for environmentallya certain number of sustainable economic activities, are necessary as a reference for future Union legislation aiming at enabling those investments.
Amendment 182 #
Proposal for a regulation
Recital 16
Recital 16
(16) To avoid harming consumer interestsinform retail investors and ensure consumer protection, fund managers and institutional investors offering financial products as environmentally sustainable, should disclose how and to what extent the criteria for environmentally sustainable economic activities are used to determineility aspect of investments including the ESG selection criteria and their environmental sustainability of the investmentsimpact. The information disclosed should enable investors to understand the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities and thus the degree ofcriteria and indicators used for identifying the environmental impact, the environmental sustainability aspects of the investment. The Commission should specify the information that needs to be disclosed for that purpose. That information should enable national competent authorities to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national lawe disclosure requirements should build on the work of the Global Reporting Initiative and the UN Principles for Responsible Investments.
Amendment 183 #
Proposal for a regulation
Recital 16
Recital 16
(16) To avoid harming consumer interests, fund managers and institutional investors offering financial products as environmentally sustainable, shouldmay choose to disclose how and to what extent the criteria for environmentally sustainable economic activities are used to determine the environmental sustainability of the investments. The information disclosed shcould enable investors to understand the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities and thus the degree of environmental sustainability of the investment. The Commission should specify the information that needs to be disclosed for that purpose. That information should enable national competent authorities to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national law.
Amendment 207 #
Proposal for a regulation
Recital 24
Recital 24
(24) An economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings and it should also not significantly harm any of the other environmental objectives. The technical screening criteria based on harmonised indicators should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria and harmonised indicators, the Commission should ensure that those criteria and indicators are based on available scientific evidence and are updated regularly. Where scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.
Amendment 233 #
Proposal for a regulation
Recital 32
Recital 32
(32) It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence, best practice and the advice of experts with proven knowledge and experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of experts representing both the public and the private sector. Public sector representatives should include experts from the European Environmental Agency, the European Supervisory Authorities and the European Investment Bank. Private sector experts should include representatives of relevant stakeholders, including financial market actors, universities, research institutes, associations and organisations. The Platform should advise the Commission on the development, analysis and review of technical screening criteria and the harmonised indicators, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria and indicators are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.
Amendment 246 #
Proposal for a regulation
Recital 35
Recital 35
(35) The application of this Regulation should be reviewed regularly and at least annually in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally sustainable activities, the use of the definition of environmentally sustainable investment, and whether compliance with the obligations requires the establishment of a verification mechanism. The review should include also an assessment of whetherthe provisions required for extending the scope of this Regulation should be extended to cover social sustainability objectives.
Amendment 303 #
Proposal for a regulation
Article 2 – paragraph 1 – point g
Article 2 – paragraph 1 – point g
(g) 'circular economy' means maintaining the value of products, materials and resources in the economy for as long as possible, and minimising waste, including through the application of the waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European Parliament and of the Council and minimising the use of resources based on key circular economy indicators as set out in the monitoring framework on progress towards a circular economy, covering different stages of production, consumption, waste management and secondary raw materials;50 _________________ 50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).
Amendment 344 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. Member States shall apply the criteria for determining environmentally sustainable economic activities set out in Article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds that are marketed as ‘environmentally sustainable’.
Amendment 350 #
Proposal for a regulation
Article 4 – paragraph 2
Article 4 – paragraph 2
2. Financial market participants offering financial products as environmentally sustainable investments, or as investments having similar characteristics, shallmay choose to disclose information on how and to what extent the criteria for environmentally sustainable economic activities set out in Article 3 are used to determine the environmental sustainability of the investment. Where financial market participants consider that an economic activity which does not comply with the technical screening criteria set out in accordance with this Regulation or for which those technical screening criteria have not been established yet, should be considered environmentally sustainable, they may inform the Commission.
Amendment 371 #
Proposal for a regulation
Article 4 – paragraph 3 – introductory part
Article 4 – paragraph 3 – introductory part
3. The Commission shall adopt delegated acts in accordance with Article 16 to supplement paragraph 2 to specify the information required to comply with that paragraph, taking into account the technical screening criteria set out in accordance with this Regulation. That information shallmay enable investors to identify:
Amendment 372 #
Proposal for a regulation
Article 4 – paragraph 3 – point a
Article 4 – paragraph 3 – point a
(a) the percentage of holdings pertaining to companies carrying out environmentally sustainable economic activities;
Amendment 378 #
Proposal for a regulation
Article 4 – paragraph 3 – point b
Article 4 – paragraph 3 – point b
(b) the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities.
Amendment 439 #
Proposal for a regulation
Article 6 – paragraph 2 – point a
Article 6 – paragraph 2 – point a
(a) supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to climate change mitigationreduce its environmental impacts;
Amendment 464 #
Proposal for a regulation
Article 9 – paragraph 1 – point d
Article 9 – paragraph 1 – point d
(d) reducing, where appropriate, the content of hazardous substances in materials and products;
Amendment 624 #
Proposal for a regulation
Article 17 – paragraph 1 – introductory part
Article 17 – paragraph 1 – introductory part
1. By 31 December 20216, and subsequently every three years thereafter, the Commission shall publish a report on the application of this Regulation. That report shall evaluate the following:
Amendment 651 #
Proposal for a regulation
Article 18 – paragraph 2 – point a
Article 18 – paragraph 2 – point a
(a) in respect of the environmental objectives referred to in points (1) and (2) of Article 5, from 1 July 20205;
Amendment 655 #
Proposal for a regulation
Article 18 – paragraph 2 – point b
Article 18 – paragraph 2 – point b
(b) in respect of the environmental objectives referred to in points (4) and (5) of Article 5, from 31 December 20216;
Amendment 657 #
Proposal for a regulation
Article 18 – paragraph 2 – point c
Article 18 – paragraph 2 – point c
(c) in respect of the environmental objectives referred to in points (3) and (6) of Article 5, from 31 December 20227.