Activities of Paul TANG related to 2018/0178(COD)
Shadow reports (1)
RECOMMENDATION FOR SECOND READING on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088
Amendments (19)
Amendment 136 #
Proposal for a regulation
Recital 6
Recital 6
(6) In March 2018, the Commission published its Action Plan 'Financing Sustainable Growth'25 setting up an ambitious and comprehensive strategy on sustainable finance. One of the objectives set out in that Action Plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. The establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the Action Plan. The Action Plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared understanding of what 'sustainable' means. As a first step, clear guidance on activities qualifying as contributing to environmental objectives, should help inform investors about the investments that fund environmentally sustainable economic activities. Further guidance on the activities contributing to other sustainability objectives, including social objectives, mayshould be developed at a later stagein parallel. _________________ 25 COM(2018) 97 final.
Amendment 154 #
Proposal for a regulation
Recital 10
Recital 10
(10) Moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives, or if they use different concepts in their explanation of 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 green 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 environment- friendly investment opportunities across borders and will incentivise investee companies to make their business models more sustainable. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.
Amendment 197 #
Proposal for a regulation
Recital 21
Recital 21
(21) Recalling the joint commitment of the European Parliament, the Council and the Commission to pursue the principles enshrined in the European Pillar of Social Rights in support of sustainable and inclusive growth and recognising the relevance of international minimum human and labour rights and standards, compliance with minimum safeguards should be a condition for economic activities to qualify as environmentally sustainable. For that reason economic activities should only qualify as environmentally sustainable where they are carried out observing, firstly, the International Labour Organisation’s (‘ILO’) declaration on Fundamental Rights and Principles at Work and the eight ILO core conventions. The ILO core conventions define human and labour rights that companies are due to respect. Several of these international standards are also enshrined the Charter of Fundamental Rights of the European Union, in particular the prohibition of slavery and forced labour and the principle of non-discrimination. Secondly, the UN Principles for Responsible Investment - Reporting Framework should be observed. Thirdly, investors should take in account the OECD Due Diligence Guidance for Responsible Business Conduct (2018). Due diligence in this context means the procedures undertakings carry out to identify, prevent, mitigate and account for sustainability risks as defined in [PO insert reference to Regulation on disclosures relating to sustainable investments and sustainability risks and its Annex I ]. Those minimum safeguards are without prejudice to the application of more stringent requirements on environment, health and safety and social sustainability set out in Union law, where applicable.
Amendment 206 #
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 thandoes not bring about a net benefit to the benefits it bringsvironment. The technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria, the Commission should ensure that those criteria 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 241 #
Proposal for a regulation
Recital 33
Recital 33
(33) In order to specify the requirements set out in this Regulation, and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the information required to comply with the disclosure obligation set out in Article 4 (3), and the technical screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is of particular importance that the Commission carry out appropriate public consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and the experts of the European Parliament and the Council should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
Amendment 254 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes the criteria for determining whether an economic activity is environmentally or socially sustainable for the purposes of establishing the degree of environmental or social sustainability of an investment.
Amendment 261 #
Proposal for a regulation
Article 1 – paragraph 2 – point a
Article 1 – paragraph 2 – point a
(a) measures adopted by Member States or by the Union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally sustainable.
Amendment 268 #
Proposal for a regulation
Article 1 – paragraph 2 – point b
Article 1 – paragraph 2 – point b
(b) financial market participants offering financial products as environmentally sustainable investments or as investments having similar characteristics.
Amendment 314 #
Proposal for a regulation
Article 2 – paragraph 1 – point n
Article 2 – paragraph 1 – point n
(n) 'sustainable forest management' means using degraded forests and degraded forest land in a way, and at a rate, that maintains and restores their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil, and deliver at least at equal scale, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, and that does not cause damage to other ecosystems.;
Amendment 388 #
Proposal for a regulation
Article 5 – title
Article 5 – title
Environmental and social objectives
Amendment 400 #
Proposal for a regulation
Article 5 – paragraph 1 – point 6 a (new)
Article 5 – paragraph 1 – point 6 a (new)
(6 a) promoting social objectives.
Amendment 495 #
Proposal for a regulation
Article 11 a (new)
Article 11 a (new)
Article 11 a Substantial contribution to social objectives 1. An economic activity shall be considered to contribute substantially to social objectives through any of the following means: (a) reducing inequality, social exclusion, discrimination and marginalization and/or fostering social cohesion and integration; (b) reducing poverty, including in the areas of income, material deprivations, such as energy poverty, and low work intensity, including labour relations, especially in socially disadvantaged communities; (c) promoting equitable access to affordable, safe, sufficient and nutritious food and/or ensuring food security; (d) promoting equitable access to health services and universal health coverage; (e) promoting equitable access to education and training; (f) promoting equitable access to social protection; (g) promoting equitable access to adequate and affordable housing; (h) promoting equitable access to other essential services, including water, sanitation, energy, transport, financial services and digital communication; (i) supporting the development of social economy organizations and social enterprises. 2. The Commission shall adopt a delegated act in accordance with Article 16 to: (a) supplement paragraph 1 to establish technical screening criteria based on indicators for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to social objectives; (b) supplement Article 12 to establish technical screening criteria based on indicators for each relevant social and environmental objective , for determining whether an economic activity in respect of which screening are established pursuant to point (A) of this paragraph is considered, for the purpose of this Regulation, to cause significant harm to one or more of those objectives. 3. The Commission shal establish the technical screening criteria based on indicators referred to in paragraph 2 together in one delegated act, taking into account the requirements laid down in Article 14. 4. The Commission shall adopt the delegated act referred to in paragraph 2 by (1 July 2022), with a view to ensure its entry into application on (31 December 2022).
Amendment 514 #
Proposal for a regulation
Article 12 – paragraph 1 – point f a (new)
Article 12 – paragraph 1 – point f a (new)
(f a) social objectives, where that activity is detrimental to social inclusion, cohesion and protection;
Amendment 519 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
The minimum safeguards referred to in Article 3(c) shall be procedures implemented by the undertaking that is carrying out an economic activity, to ensure that the principles and rights set out in the eight fundamental conventions identified in the International Labour Organisation’s declaration on Fundamental Rights and Principles at Work, namely: the right not to be subjected to forced labour, the freedom of association, workers' right to organise, the right to collective bargaining, equal remuneration for men and women workers for work of equal value, non- discrimination in opportunity and treatment with respect to employment and occupation, as well as the right not to be subjected to child labour, are observed.least the following:
Amendment 525 #
Proposal for a regulation
Article 13 – paragraph 1 a (new)
Article 13 – paragraph 1 a (new)
a) the principles and rights set out in the eight fundamental conventions identified in the International Labour Organisation’s declaration on Fundamental Rights and Principles at Work, namely: the right not to be subjected to forced labour, the freedom of association, workers' right to organise, the right to collective bargaining, equal remuneration for men and women workers for work of equal value, non- discrimination in opportunity and treatment with respect to employment and occupation, as well as the right not to be subjected to child labour, are observed.
Amendment 526 #
Proposal for a regulation
Article 13 – paragraph 1 b (new)
Article 13 – paragraph 1 b (new)
b) the UN Principles for Responsible Investment - Reporting Framework
Amendment 527 #
Proposal for a regulation
Article 13 – paragraph 1 c (new)
Article 13 – paragraph 1 c (new)
c) OECD Guidance – Responsible Business Conduct for Institutional Investors – Key Considerations for due diligence under the OECD Guidelines for Multinational Investors (2017)
Amendment 528 #
Proposal for a regulation
Article 13 – paragraph 1 d (new)
Article 13 – paragraph 1 d (new)
(d) The undertaking shall ensure the minimum safeguards while having in place due diligence processes, that ensure that the identification and management of sustainability risks are sufficiently integrated in investment decision-making, requiring investors to identify, prevent, mitigate and account for ESG factors.
Amendment 660 #
Proposal for a regulation
Article 18 – paragraph 2 – point c a (new)
Article 18 – paragraph 2 – point c a (new)
(c a) in respect of the social objectives referred to in point 7 of Article 5, from 31 December 2022.