Activities of Sirpa PIETIKÄINEN related to 2018/0178(COD)
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 (21)
Amendment 180 #
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 forthe degree of environmentally sustainable economic activities are used to determine the environmental sustainability of the investments. The information disclosed should enable investors to understand the share of the investment fundingility of the investments and their environmental impact. The information disclosed should enable investors to understand the criteria and indicators used for identifying the environmental impact, the degree of environmentally sustainable economic activities as a percentage of all economic activities and thus the degree ofility of the investment as well as the percentage of investee companies' turnover supporting activities that qualify as environmentally sustainability of the investmenle or with negative environmental impact. The Commission should specify the information that needs to be disclosed for that purpose. Thatin audited annual and management reports for that purpose and to be audited by independent auditors as part of integrated reporting. That audited and verified information should enable national competent authorities, and when necessary to the ESAs, to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national lawand Union law. The disclosure requirements should be in line with global disclosure requirement initiatives such as the Global Reporting Initiative and the UN Principles for Responsible Investment. The independent auditors should be subject to authorisation by the ESAs.
Amendment 215 #
Proposal for a regulation
Recital 27
Recital 27
(27) To encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within aeconomic macro specific sectortors (ie. NACE sectors such as agriculture, forestry and fishing, manufacturing, electricity, gas, steam and air conditioning supply, construction, transportation and storage services) can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation while not significantly harming any other environmental objectives referred to in Articles 3 and 12. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the technical screening criteria. However, within each economic macro sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter while not significantly harming any other environmental objectives referred to in Articles 3 and 12.
Amendment 224 #
Proposal for a regulation
Recital 28
Recital 28
(28) When establishing technical screening criteria, the Commission should assess whetherpotential transition risks, whether the pace of the adoption of those criteria for environmentally sustainable activities would give rise to stranded assets or deliver inconsistent incentives, and whether it would have any negative impact on liquidity in financial markets.
Amendment 228 #
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 existing work and entities, notably, the European Commission Circular Economy Platform, 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 national environment protection agencies, the European Supervisory Authorities, the European Financial Reporting Advisory Group, 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 assetsbased on harmonised indicators were considered as sustainable assets or assets having a negative environmental impact 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. The Platform should advise the Commission on the development of sustainability accounting standards and integrated reporting standards for corporates and financial market participants, including through the revision of Directive 2013/34/EU.
Amendment 295 #
Proposal for a regulation
Article 2 – paragraph 1 – point c a (new)
Article 2 – paragraph 1 – point c a (new)
(c a) ‘insurance undertaking’ means an insurance undertaking as defined in Article 13(1) of Directive 2009/138/EC, when providing an insurance coverage to an undertaking;
Amendment 298 #
Proposal for a regulation
Article 2 – paragraph 1 – point c
Article 2 – paragraph 1 – point c
(c) 'financial products' mean financial products as defined in Article 2 (j) of [Commission proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341] as well as issuances referred to in the Directive 2010/73/EU (Prospectus Directive);
Amendment 299 #
Proposal for a regulation
Article 2 – paragraph 1 – point c a (new)
Article 2 – paragraph 1 – point c a (new)
(c a) 'issuers' means listed undertaking referred to in the Directive 2010/73/EU (Prospectus Directive);
Amendment 309 #
Proposal for a regulation
Article 2 – paragraph 1 – point j
Article 2 – paragraph 1 – point j
(j) 'energy efficiency' means using energy more efficiently at all the stages of the energy chain from production to final consumption;the ratio of output of performance, service, goods or energy, to input of energy.
Amendment 313 #
Proposal for a regulation
Article 2 – paragraph 1 – point n
Article 2 – paragraph 1 – point n
(n) 'sustainable forest management' means using forests and forest land in a way, that restores and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfill and that delivers 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, while taking into account national forest legislation, EU Timber Regulation, EU LULUCF Regulation as well as in the case of wood- based bioenergy the requirements of EU Renewable Energy Directive.
Amendment 351 #
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, shall 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 investmentshall disclose information on whether the products they offer qualify as environmentally sustainable investments pursuant to the criteria of Article 3, or as investments having a negative environmental impact pursuant to the criteria set out in Article 3a. Where financial market participants consider that an economic activity, for which does not comply with those 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 infhave not been established yet, should be considered environmentally sustainable, they shall inform the Commission. Financial market participants shall not offer financial products as environmentally sustainable investments, or as investments having similar characteristics, if those products do not qualify as environmentally sustainable. The information disclosed shall be verified by an independent auditorm the Commissiono ensure accuracy, as laid out in Article 4a.
Amendment 363 #
Proposal for a regulation
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 ba (new)
2 a. The financial market participant shall use the service of a third party authorised under Article 4a to check whether financial products comply with the criteria of Article 3 for environmentally sustainable economic activities. However, the use of such a service shall not, under any circumstances, affect the liability of the financial market participant in respect of their legal obligations under this Regulation. Where the financial market participant uses the service of a third party authorised pursuant to Article 4a to assess whether a financial product complies with the criteria set out in that Article, the disclosure according to Article 4(2) shall include a statement that compliance with the criteria for environmentally sustainable economic activities was confirmed by that authorised third party. The notification shall include the name of the authorised third party and its place of establishment.
Amendment 385 #
Proposal for a regulation
Article 4 a (new)
Article 4 a (new)
Article 4 a Third party verifying environmentally sustainable investments 1. A third party referred to in sub- paragraph 2(ba) of Article 4 shall be authorised by ESMA to assess the compliance of financial products with the criteria provided for in Article 3. ESMA shall grant the authorisation if the following conditions are met: (a) the third party is a legal person established in the established in the Union. (b) the third party only charges non- discriminatory and cost-based fees to financial market participants of which the third party assesses the financial products, without differentiating fees depending on, or correlated to, the results of its assessment. The prices and fees associated with these assessment services shall be publicly disclosed, for each service provided separately, including discounts and rebates and the conditions to benefit from those reductions. The third party shall allow potential clients and clients to access specific services separately; (c) the performance of the third party’s other activities does not compromise the independence or integrity of its assessment; (d) the third party demonstrates sufficient financial health funded by equity in order to continue providing services as a going concern without risk that the independence or integrity of its assessment may be compromised; (e) the third party, or any related entity as referred to in paragraph 9(b) of International Accounting Standard 24 (‘related party disclosures’) in the Annex to Commission Regulation (EC) No 1126/2008[1], shall not provide any form of advisory, audit or equivalent service to the financial market participant involved the development, marketing, distribution, or sale of the relevant financial product; (f) the third party adheres to a recognised corporate governance code of conduct or to sound corporate governance principles; (g) the members of the management body, as defined in point 36 of Article 4(1) of MiFiDII [2], of the third party have professional qualifications, education, knowledge and experience that are adequate for the task of the third party, are they are of good repute and integrity; (h) the management body of the third party includes at least one third, but no fewer than two, independent members; (i) the third party takes all necessary steps to ensure that the verification of compliance with the criteria of Article 3 for environmentally sustainable economic activities is not affected by any existing or potential conflicts of interest or business relationship involving the third party; its parent, ultimate parent, or any other related entity; its shareholders or members; managers; employees or any other natural person whose services are placed at the disposal or under the control of the third party. To that end, the third party shall establish, maintain, enforce and document an effective internal control system governing the implementation of policies and procedures to identify and prevent potential conflicts of interest. Potential or existing conflicts of interest which have been identified shall be eliminated or mitigated and disclosed without delay. The third party shall establish, maintain, enforce and document adequate procedures and processes to ensure the independence of the assessment of criteria for environmentally sustainable economic activities compliance. The third party shall periodically monitor and review those policies and procedures in order to evaluate their effectiveness and assess whether it is necessary to update them; and (j) the third party can demonstrate that it has adequate methodologies, operational safeguards and internal processes that enable it to assess compliance with the criteria for environmentally sustainable economic activities. 2. An authorised third party shall comply at all times with the conditions for authorisation set out in paragraph 1. A third party authorised in accordance with paragraph 1 shall notify ESMA without delay of any material changes to the information provided under that paragraph, or any other changes that could reasonably be considered to affect the assessment of the ESMA. 3. ESMA shall charge fees to the third party referred to in paragraph 1, in order to cover necessary expenditure relating to the assessment of applications for authorisation and to the subsequent monitoring of compliance with the conditions for authorisation set out in paragraph 1. 4. The authorisation of a third party according to this Article shall be effective for the entire territory of the Union. 5. ESMA shall withdraw the authorisation where: (a). The third party expressly renounces the authorisation; (b). The third party obtained the authorisation by making false statements or by any other irregular means, or; (c). ESMA considers the third party no longer meets the conditions set out in paragraph 1. 6. ESMA shall develop draft regulatory technical standards specifying the information to be provided in the application for the authorisation of a third party in accordance with paragraph 1.ESMA shall submit those draft regulatory technical standards to the Commission by [within 12 months of the date of entry into force of the Regulation]. 7. The Commission shall adopt a regulation on fees. That Regulation shall determine in particular the type of fees and the matters for which fees are due, the amount of fees and the way in which they are to be paid. The amount of a fee charged to a third party shall cover all administrative costs and be proportionate to the turnover of the third party. 8. The Commission is empowered to supplement this Regulation by adopting the regulatory technical standards referred to in this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. [1] Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 320, 29.11.2008, p. 1).[2] Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L173, 12.6.2014, p. 349– 496).
Amendment 447 #
Proposal for a regulation
Article 8 – paragraph 1 – point a
Article 8 – paragraph 1 – point a
(a) protecting the aquatic environment from the adverse effects of urban and industrial waste water discharges by ensuring adequate collection and treatment of urban and industrial waste waters in accordance with Articles 3, 4, 5 and 11 of Council Directive 91/271/EEC53 or in accordance with the best available technique set out in the Directive 2010/75/EU; _________________ 53 Council Directive 91/271/EEC of 21 May 1991 concerning urban waste water treatment (OJ L 135, 30.5.1991, p. 40).
Amendment 490 #
Proposal for a regulation
Article 11 – paragraph 1 – point d
Article 11 – paragraph 1 – point d
(d) sustainable forest management, taking into account national forest legislation and the EU Timber Regulation, EU LULUCF Regulation as well as in the case of wood-based bioenergy the requirements of EU Renewable Energy Directive (RED).
Amendment 508 #
Proposal for a regulation
Article 12 – paragraph 1 – point d
Article 12 – paragraph 1 – point d
(d) circular economy and waste prevention and recycling, where that activity leads to significant inefficiencies in the use of materials in one or more stages of the life-cycle of products, including in terms of durability, reparability, upgradability, reusability or recyclability of products; or where that activity leads to a significant increase in the generation, incineration or disposal of waste or where waste from the activity lacks operational civic disposal facilities;
Amendment 550 #
Proposal for a regulation
Article 14 – paragraph 1 – point i
Article 14 – paragraph 1 – point i
(i) cover all relevant economic activities within a specificn economic macro sector and ensure that those activities are treated equally in terms of their sustainability risks and if they contribute equally towards one or more environmental objectives while not significantly harming other environmental objectives referred to in Articles 3 and 12, to avoid distorting competition in the market;
Amendment 560 #
Proposal for a regulation
Article 15 – paragraph 1 – point a – point i a (new)
Article 15 – paragraph 1 – point a – point i a (new)
(i a) national environment protection agencies
Amendment 563 #
Proposal for a regulation
Article 15 – paragraph 1 – point a – point iii a (new)
Article 15 – paragraph 1 – point a – point iii a (new)
(iii a) the European Financial Reporting Advisory Group (EFRAG)
Amendment 586 #
Proposal for a regulation
Article 15 – paragraph 2 – point a
Article 15 – paragraph 2 – point a
(a) advise the Commission on the technical screening criteria based on indicators referred to in Article 14, and the possible need to update those criteria; in doing so, it shall develop harmonised environmental indicators, drawing on the existing indicators and the work of Union's entities, notably the Circular Economy Monitoring Platform.
Amendment 592 #
Proposal for a regulation
Article 15 – paragraph 2 – point d a (new)
Article 15 – paragraph 2 – point d a (new)
(d a) advise the Commission on the development of sustainability accounting standards and integrated reporting standards for corporates and financial market participants, including through the revision of the Directive 2013/34/EU.
Amendment 646 #
Proposal for a regulation
Article 17 a (new)
Article 17 a (new)