88 Amendments of Sirpa PIETIKÄINEN related to 2018/0179(COD)
Amendment 1 #
Proposal for a regulation
Title 1
Title 1
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on disclosures relating to the sustainable investments and sustainability riskility impact and risks of investments and amending Directive (EU) 2016/2341 and Directive 2013/34/EU (Text with EEA relevance)
Amendment 6 #
Proposal for a regulation
Recital 2
Recital 2
(2) A common objective of Directive 2009/65/EC of the European Parliament and of the Council32 , Directive 2009/138/EC of the European Parliament and of the Council33 , Directive 2011/61/EU of the European Parliament and of the Council34 , Directive 2014/65/EU of the European Parliament and of the Council35 , Directive (EU) 2016/97 of the European Parliament and of the Council36 , Directive (EU) 2016/2341 of the European Parliament and of the Council37 , Regulation (EU) No 345/2013 of the European Parliament and of the Council38 and Regulation (EU) No 346/2013 of the European Parliament and of the Council39 is to facilitate the taking- up and pursuit of the activities of undertakings for collective investment in transferable securities (UCITS), alternative investment fund managers (AIFMs), insurance undertakings, investment firms, insurance intermediaries, institutions for occupational retirement provision (IORPs), managers of qualifying venture capital funds (EuVECA managers), and managers of qualifying social entrepreneurship funds (EuSEF managers). Those Directives and Regulations ensure more uniform protection of end-investors and make it easier for them to benefit from a wide range of financial products and services, and at the same time provide for rules that enable investors to make informed investment decisions. While those objectives have been largely achieved, disclosures to end-investors onon the sustainability impact and the integration of sustainability risks and sustainable investment targets in investment decision-making by UCITS management companies, AIFMs, insurance undertakings, investment firms which provide portfolio management, IORPs, pension providers, EuVECA managers and EuSEF managers (financial market participants) and disclosures to end- investors on the integration of sustainability risks in advisory processes by insurance intermediaries which provide insurance advice with regard to insurance- based investment products (IBIPs) and investment firms which provide investment advice (financial advisors) are insufficiently developed because such disclosures are not yet subject to harmonised requirementindicators and requirements. In order to fulfil their obligations of due diligence concerning the sustainability impact and risks, financial market participants themselves need reliable, comparable and harmonised disclosure of information by investee companies. Directive 2013/34/EU lays out obligations relating to accounting and reporting requirements of companies, hence these directives should be updated to include integrated, audited reporting of sustainability risks and impact in order to respond to the increasing need to integrate sustainability considerations in strategy and risk management of companies. __________________ 32 Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32). 33 Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1). 34 Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers (OJ L 174, 1.7.2011, p. 1). 35 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 L 173, 12.6.2014, p. 349). 36 Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (OJ L 26, 2.2.2016, p. 19). 37 Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (OJ L 354, 23.12.2016, p. 37). 38 Regulation (EU) No 345/2013 of the European Parliament and of the Council of 17 April 2013 on European venture capital funds (OJ L 115, 25.4.2013, p. 1). 39 Regulation (EU) No 346/2013 of the European Parliament and of the Council of 17 April 2013 on European social entrepreneurship funds (OJ L 115, 25.4.2013, p. 18).
Amendment 7 #
Proposal for a regulation
Recital 3
Recital 3
(3) In the absence of harmonised Union rules on sustainability-related disclosures to eby issuers and- investors, it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist. Such divergent measures and approaches would continue to cause significant distortions of competition resulting from significant differences in disclosure standards. In addition, a parallel development of market- based practices, based on commercially- driven priorities that produce divergent results currently causes further market fragmentation and might even further exacerbate the functioning of the internal market in the future. Divergent disclosure standards and market-based practices and a lack of harmonised set of indicators make it very difficult to compare between different financial products and services and create an uneven playing field between these products and services and between distribution channels, and erect additional barriers to the internal market. Such divergences can also be confusing for end- investors and can distort their investment decisions. In ensuring compliance with the Paris Climate Agreement, Member States are likely to adopt divergent national measures which could create obstacles to the smooth functioning of the internal market and be detrimental to financial market participants and financial advisors. In addition, the lack of harmonised rules and indicators relating to transparency makes it difficult for end-investors to effectively compare underlying investee companies and different financial products and services in different Member States as to their environmental, social and governance impact and risks and sustainable investment targets. It is therefore necessary to address existing to the functioning of the internal market and to prevent likely future obstacles.
Amendment 11 #
Proposal for a regulation
Recital 4
Recital 4
(4) To ensure a coherent application of this Regulation and that the disclosure obligations laid down in this Regulation are clearly and consistently applied by financial market participants, it is necessary to lay down a harmonised definition of ‘sustainable investments’, and 'sustainability risks', based on a harmonised set of indicators. Whilst focusing on material risks, that definition should be forward-looking as to take due consideration of emerging risks.
Amendment 15 #
Proposal for a regulation
Recital 6
Recital 6
(6) Since sustainability benchmarks serve as standard points of reference against which sustainable investments are measured, end-investors should be informed by means of pre-contractual disclosures about the appropriateness of the designated index, namely the alignment of that index with the sustainable investment target. Financial market participants should also disclose the reasons for different weighting and constituents of the designated index compared to a broad market index. To further foster transparency, financial market participants should also indicate where the methodology used for the calculation of the designated index and the broad market index is to be found, so that end-investors have the necessary information on how the underlying assets of the indexes were selected and weighted, which assets were excluded and for what reason, how sustainability-related impacts of the underlying assets were measured, or which data sources were used. Such disclosures, based on a harmonised set of indicators, should allow for effective comparison and contribute to develop a correct perception of sustainably-friendly investments. Where no index has been designated as a reference benchmark financial market participants should explain how the sustainable investment target is reached.
Amendment 18 #
Proposal for a regulation
Recital 8
Recital 8
(8) To enhance transparency and comparability, inform end-investors, access to information on how the sustainability impact is taken into account and how sustainability risks are integrated by financial market participants in the investment decision making processes and by financial advisors in advisory processes should be regulated by requiring those entities to maintain that information on their websites.
Amendment 21 #
Proposal for a regulation
Recital 9
Recital 9
(9) The current disclosure requirements set out by Union legislation do not provide that all the information necessary to properly inform end-investors about the sustainability-related impact of their investments must be disclosed. Therefore, it is appropriate to set out more specific disclosure requirements with regard to sustainable investments. For instance, the overall sustainability-related impact of financial products should be reported regularly by means of a harmonised set of indicators, while relevant for the chosen sustainable investment target. Where an appropriate index has been designated as reference benchmark that information should also be provided for the designated index and to a broad market index to allow for comparison. Information on the constituents of the designated index and of the broad market index along with their weightings should also be disclosed, to provide further information on how the sustainable investments targets are achieved. Where EuSEF managers make available information on the positive social impact targeted by a given fund, the overall social outcome achieved and the related methods used in accordance with Regulation (EU) No 346/2013, they may, where appropriate, use this information for the purposes of the disclosures under this Regulation.
Amendment 22 #
Proposal for a regulation
Recital 10
Recital 10
(10) Directive 2013/34/EU of the European Parliament and of the Council40 impose transparency obligations as regards social, environmental and corporate governance aspects in non-financial reporting. The required form and presentation established by those Directives is not, however, suitable for direct use by financial market participants and financial advisors when dealing with end-investors. The financial market participants and, financial advisors should have the option to use infand publicly listed companies should disclose information on the environmental, social and corpormation ine governance impact and risks in annual management reports and non-financial statements in accordance with Directive 2013/34/EU, for the purposes of this Regulation, where appropriate. __________________ 40 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).
Amendment 27 #
Proposal for a regulation
Recital 13
Recital 13
(13) The European Banking Authority (‘EBA’), European Insurance and Occupational Pensions Authority (‘EIOPA’) and the European Securities and Markets Authority (‘ESMA’) (collectively known as the ‘ESAs’) established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council,41 Regulation (EU) No 1094/2010 of the European Parliament and of the Council42 and Regulation (EU) No 1095/2010 of the European Parliament and of the Council43 respectively should, through the Joint Committee, develop regulatory technical standards further specifying the details of the presentation and content of the information on the sustainability impact and risks of investment targets to be disclosed in pre-contractual documents, periodical and annual integrated reports and websites of financial market participants in accordance with Articles 10 to 14 of Regulation No 1093/2010, Regulation No 1094/2010 and of Regulation (EU) No 1095/2010. The Commission should be empowered to adopt those regulatory technical standards. __________________ 41 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12). 42 Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48). 43 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).
Amendment 28 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16a) The disclosure rules set out in this Regulation complement the introduction of a full overarching, mandatory due diligence framework for all market participants, both investor and investee companies, including a duty of care component, to be fully phased-in within a transitional period and taking into account the proportionality principles, in line with the OECD Guidelines on due diligence, and building on the European Parliament resolution of 29 May 2018 on sustainable finance which calls for a mandatory due diligence framework.
Amendment 29 #
Proposal for a regulation
Recital 18
Recital 18
(18) Since the objectives of this Regulation, namely to strengthen protection for end-information to investors and improve disclosures to them, including in caand to help financial market participants, investment advisers of cross-border purchases for end-investorand publicly listed companies integrate environmental, social and governance risks into their investment strategies and company board decisions, cannot be sufficiently achieved by the Member States but can be better achieved at Union level because of the need to lay down uniform disclosure requirements at Union level the Union may adopt measures, in accordance with principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,
Amendment 30 #
Proposal for a regulation
Recital 18 a (new)
Recital 18 a (new)
(18a) To fulfil the obligations of due diligence concerning the sustainability impact and risks, financial market participants need reliable, comparable and harmonised disclosure of information by investee companies. Therefore, the disclosure requirements laid out in this Regulation should apply to publicly listed companies after a transitional period of 18 months following the entry into force of this Regulation. The Commission should accordingly examine if it would be appropriate to propose corresponding amendments to Directive 2013/34/EU.
Amendment 31 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
This Regulation lays down harmonised rules on the transparency to be applied by financial market participants, insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice on the integration of sustainability risks, and publicly listed companies on how sustainability risks and impact are incorporated in investment decision- making process or advisory process, and the transparency of financial products that have as their targets sustainable investments, including tthe sustainability impact and risks of investment products, whe reduction in carbon emissions material and appropriate.
Amendment 33 #
Proposal for a regulation
Article 2 – paragraph 1 – point b a (new)
Article 2 – paragraph 1 – point b a (new)
(ba) 'publicly listed company' means an undertaking under the scope of the Directive 2013/34/EU;
Amendment 34 #
Proposal for a regulation
Article 2 – paragraph 1 – point h – point ii a (new)
Article 2 – paragraph 1 – point h – point ii a (new)
(iia) a pan-European pension product as proposed in the Regulation 201X/XXX1a; __________________ 1a Regulationof the European Parliament and of the Council on a pan-European Personal Pension Product (PEPP), 2017/0143 (COD).
Amendment 35 #
Proposal for a regulation
Article 2 – paragraph 1 – point o – introductory part
Article 2 – paragraph 1 – point o – introductory part
(o) ‘sustainable investments’ mean any of the following or a combination of any of the followingproducts associated with strategies that aim at achieving environmental, social and governance-related impact, including any combination of the following, to the extent that the objectives of any one category are in accordance with, and do not significantly harm, any of the objectives of the other categories below:
Amendment 37 #
Proposal for a regulation
Article 2 – paragraph 1 – point o – point i
Article 2 – paragraph 1 – point o – point i
(i) investments in an economic activity that contributes to an environmental objective, including an environmentally sustainable investment as defined in Article 2 of [PO: Please insert reference to Regulation on the establishment of a framework to facilitate sustainable investment]; and based on key resource efficiency indicators, such as the use of energy, use of renewable energy, use of raw materials, production of waste, emissions, CO2 emissions, use of water, use of land, and impact on biodiversity;
Amendment 38 #
Proposal for a regulation
Article 2 – paragraph 1 – point o – point iii
Article 2 – paragraph 1 – point o – point iii
(iii) investments in companies following good governance practices, and in particular companies with sound management and due diligence structures, employee relations, remuneration of relevant staff and tax compliance;
Amendment 39 #
Proposal for a regulation
Article 2 – paragraph 1 – point s a (new)
Article 2 – paragraph 1 – point s a (new)
(sa) 'sustainability risks' means financial or non-financial risks, material or likely to be materialised in the long term, linked to environmental, social and governance factors, where relevant for a particular investment approach;
Amendment 40 #
Proposal for a regulation
Article 3 – title
Article 3 – title
Transparency of the sustainability risk policies and the sustainability impact
Amendment 41 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
1. Financial market participants shall publishhave in place written policies on the integration of sustainability risks and impact in the investment decision-making process, such as in the areas of governance, asset allocation, investment strategy, risk management, the exercise of shareholder voting and company engagement; and publish a summary of them in written form on their websites.
Amendment 43 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. Insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice shall publishhave in place written policies on the integration of sustainability risks and impact in investment advice or insurance advice, such as in the areas of governance, asset allocation, investment strategy, risk management, the exercise of shareholder voting and company engagement; and publish a summary of them in written form on their websites.
Amendment 45 #
Proposal for a regulation
Article 3 – paragraph 2 a (new)
Article 3 – paragraph 2 a (new)
2a. Financial markets participants and insurance intermediaries shall have 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, taking into account the 2017 OECD Guidelines1a, and publish them in written form on their websites. __________________ 1aOECD (2017) Responsible business conduct for institutional investors: Key considerations for due diligence.
Amendment 47 #
Proposal for a regulation
Title 1
Title 1
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on disclosures relating to sustainable investmentility risks and sustainability risks andperformance of investments, amending Directive (EU) 2016/2341, and Directive 2013/34/EU (Text with EEA relevance)
Amendment 49 #
Proposal for a regulation
Recital 2
Recital 2
(2) A common objective of Directive 2009/65/EC of the European Parliament and of the Council32 , Directive 2009/138/EC of the European Parliament and of the Council33 , Directive 2011/61/EU of the European Parliament and of the Council34 , Directive 2014/65/EU of the European Parliament and of the Council35 , Directive (EU) 2016/97 of the European Parliament and of the Council36 , Directive (EU) 2016/2341 of the European Parliament and of the Council37 , Regulation (EU) No 345/2013 of the European Parliament and of the Council38 and Regulation (EU) No 346/2013 of the European Parliament and of the Council39 is to facilitate the taking- up and pursuit of the activities of undertakings for collective investment in transferable securities (UCITS), alternative investment fund managers (AIFMs), insurance undertakings, investment firms, insurance intermediaries, institutions for occupational retirement provision (IORPs), managers of qualifying venture capital funds (EuVECA managers), and managers of qualifying social entrepreneurship funds (EuSEF managers). Those Directives and Regulations ensure more uniform protection of end-investors and make it easier for them to benefit from a wide range of financial products and services, and at the same time provide for rules that enable investors to make informed investment decisions. While those objectives have been largely achieved, disclosures to end-investors and investors on the integration of sustainability risks, sustainability performance, and sustainable investment targets in investment decision-making by UCITS management companies, AIFMs, insurance undertakings, investment firms which provide portfolio management, IORPs, pension providers, EuVECA managers and EuSEF managers (financial market participants) and disclosures to end- investors and investors on the integration of sustainability risks and sustainability performance in advisory processes by insurance intermediaries which provide insurance advice with regard to insurance- based investment products (IBIPs) and investment firms which provide investment advice (financial advisors) are insufficiently developed because such disclosures are not yet subject to harmonised requirementssustainability performance indicators and requirements. In order to fulfil their obligations of due diligence to consider material sustainability risks and to incorporate sustainability performance indicators, financial market participants themselves need reliable, comparable and harmonised disclosure of information by investee companies and harmonised accounting standards regarding sustainability indicators. The Directive 2013/34/EU lays out obligations relating to accounting and reporting requirements of companies, hence this Directive should be updated to include integrated, audited reporting of sustainability risks and performance in order to respond to the increasing need to integrate sustainability considerations in strategy and risk management of companies. Review of the Directive 2013/34/EU, due by 2018, presents an opportunity for this end. _________________ 32 Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32). 33 Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1). 34 Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers (OJ L 174, 1.7.2011, p. 1). 35 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 L 173, 12.6.2014, p. 349). 36 Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (OJ L 26, 2.2.2016, p. 19). 37 Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (OJ L 354, 23.12.2016, p. 37). 38 Regulation (EU) No 345/2013 of the European Parliament and of the Council of 17 April 2013 on European venture capital funds (OJ L 115, 25.4.2013, p. 1). 39 Regulation (EU) No 346/2013 of the European Parliament and of the Council of 17 April 2013 on European social entrepreneurship funds (OJ L 115, 25.4.2013, p. 18).
Amendment 49 #
Proposal for a regulation
Article 4 – title
Article 4 – title
Amendment 51 #
Proposal for a regulation
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) the due diligence procedures and conditions applied for integrating sustainability risks in investment decisions;
Amendment 53 #
Proposal for a regulation
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) the extent to which sustainability risks are expected to have a relevant impact on environmental, social and governance issues and on the returns of the financial products made available;
Amendment 56 #
Proposal for a regulation
Article 4 – paragraph 1 – point c a (new)
Article 4 – paragraph 1 – point c a (new)
(ca) in terms of shareholder voting with regards to sustainable investments and the mitigation of sustainability risks, the voting instructions and voting rationales behind votes against management, abstentions and contentious votes;
Amendment 57 #
Proposal for a regulation
Recital 3
Recital 3
(3) In the absence of harmonised Union rules on sustainability-related disclosures to end-investorto investors and end-investors, by investors and investee companies, it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist. Such divergent measures and approaches would continue to cause significant distortions of competition resulting from significant differences in disclosure standards. In addition, a parallel development of market- based practices, based on commercially- driven priorities that produce divergent results currently causes further market fragmentation and might even further exacerbate the functioning of the internal market in the future. Divergent disclosure standards and market-based practices, and a lack of harmonised set of sustainability performance indicators make it very difficult to compare between different financial products and services and create an uneven playing field between these products and services and between distribution channels, and erect additional barriers to the internal market. Such divergences can also be confusing for end- investors and can distort their investment decisions. In ensuring compliance with the Paris Climate Agreement, Member States are likely to adopt divergent national measures which could create obstacles to the smooth functioning of the internal market and be detrimental to financial market participants and financial advisors. In addition, the lack of harmonised rules and sustainability performance indicators relating to transparency makes it difficult for investors to effectively compare underlying investee companies and end- investors to effectively compare different financial products and services in different Member States as to their environmental, social and governance risks, sustainability performance and sustainable investment targets. It is therefore necessary to address existing to the functioning of the internal market and to prevent likely future obstacles.
Amendment 58 #
Proposal for a regulation
Recital 4
Recital 4
(4) To ensure a coherent application of this Regulation and that the disclosure obligations laid down in this Regulation are clearly and consistently applied by financial market participants, it is necessary to lay down a harmonised definition of ‘sustainable investments’ility risks' and a harmonised set of indicators to measure 'sustainable investment performance’. Whilst focusing on material risks, the definition of 'sustainability risks' should be forward-looking as to take due consideration of emerging risks.
Amendment 59 #
Proposal for a regulation
Article 4 – paragraph 2 – point b
Article 4 – paragraph 2 – point b
(b) the extent to which sustainability risks are expected to have a relevant impact on environmental, social and governance issues and on the returns of the financial products advised on;
Amendment 62 #
Proposal for a regulation
Article 4 – paragraph 3 – point i a (new)
Article 4 – paragraph 3 – point i a (new)
(ia) for publicly listed companies, in accordance with Directive 2013/34
Amendment 64 #
Proposal for a regulation
Article 5 – title
Article 5 – title
Transparency of the sustainableility impact and risks of investments in pre-contractual disclosures
Amendment 65 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1 – point b
Article 6 – paragraph 1 – subparagraph 1 – point b
(b) information on the methodologies used to assess, measure and monitor the sustainability impact of the sustainable investments selected for the financial product, including its data sources, screening criteria for the underlying assets and the relevant sustainability indicators used to measure the overall sustainable impact of the financial product;
Amendment 66 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 2
Article 6 – paragraph 1 – subparagraph 2
The information to be disclosed pursuant to the first subparagraph shall be published in a clear way and in a prominent area of the website, in a manner that is understandable to different stakeholders including a non-specialised audience with different levels of financial literacy.
Amendment 67 #
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. Where financial market participants make available a financial product referred to in paragraphs (1), (2) and (3) of Article 5, they shall include a description of the following in periodical reports, audited, integrated reports, conducted at least annually:
Amendment 68 #
Proposal for a regulation
Recital 6
Recital 6
(6) Since sustainability benchmarks serve as standard points of reference against which sustainable investments are measured, end-investors should be informed by means of pre-contractual disclosures about the appropriateness of the designated index, namely the alignment of that index with the sustainable investment target. Financial market participants should also disclose the reasons for different weighting and constituents of the designated index compared to a broad market index. To further foster transparency, financial market participants should also indicate where the methodology used for the calculation of the designated index and the broad market index is to be found, so that end-investors have the necessary information on how the underlying assets of the indexes were selected and weighted, which assets were excluded and for what reason, how sustainability-related impacts and performance of the underlying assets were measured, or which data sources were used. Such disclosures should be based on a harmonised set of performance indicators, allowing for effective comparison and contribute to develop a correct perception of sustainably-friendlyility risks and performance of investments. Where no index has been designated as a reference benchmark financial market participants should explain how the sustainable investment target is reached or how sustainability risks and sustainability performance indicators have been considered.
Amendment 68 #
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) the overall sustainability-related impact by the financial product by means of relevantharmonised and comparable sustainability indicators;
Amendment 69 #
Proposal for a regulation
Article 7 – paragraph 1 – point b a (new)
Article 7 – paragraph 1 – point b a (new)
(ba) Publicly listed companies shall include a description of how the sustainability impact and risks have been incorporated in the management processes and investment strategy in the annual financial statements and consolidated financial statements referred to in Directive 2013/34/EU.
Amendment 70 #
Proposal for a regulation
Recital 8
Recital 8
(8) To enhance transparency and inform investors and end-investors, access to information on how sustainability performance is taken into account and how sustainability risks are integrated by financial market participants in the investment decision making processes and, by financial advisors in advisory processes should be regulated by requiring those entities to maintain that information on their website, and by underlying investee companies in their strategy and operations should be regulated by requiring financial market participants and financial advisors to maintain that information on their websites, and investee companies in their annual integrated, audited reports.
Amendment 70 #
Proposal for a regulation
Article 7 – paragraph 2 – point h a (new)
Article 7 – paragraph 2 – point h a (new)
(ha) for publicly listed companies, in accordance with the periodical statements referred to in Directive 2013/34.
Amendment 72 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
By [PO: Please insert date 360 months after the date of entry into force], the Commission shall conduct an evaluation of the application of this Regulation.
Amendment 75 #
Proposal for a regulation
Recital 9
Recital 9
(9) The current disclosure requirements set out by Union legislation do not provide that all the information necessary to properly inform end-investors about the sustainability-related impact of their investments must be disclosed. Therefore, it is appropriate to set out more specific disclosure requirements with regard to sustainable investments. For instance, the overall sustainability-related impact of financial products should be reported regularly by means of a harmonised set of indicators relevant for the chosen sustainable investment targetmeasuring and comparing sustainability performance. Where an appropriate index has been designated as reference benchmark that information should also be provided for the designated index and to a broad market index to allow for comparison. Information on the constituents of the designated index and of the broad market index along with their weightings should also be disclosed, to provide further information on how the sustainable investments targets are achieved. Where EuSEF managers make available information on the positive social impact targeted by a given fund, the overall social outcome achieved and the related methods used in accordance with Regulation (EU) No 346/2013, they may, where appropriate, use this information for the purposes of the disclosures under this Regulation.
Amendment 77 #
Proposal for a regulation
Recital 10
Recital 10
(10) Directive 2013/34/EU of the European Parliament and of the Council40 impose transparency obligations as regards social, environmental and corporate governance aspects in non-financial reporting. The required form and presentation established by those Directives is not, however, suitable for direct use by financial market participants and financial advisors when dealing with end-investors. The financial market participants and financial advisors should have the option to use information in management reports and non-financial statements in accordance with Directive 2013/34/EU for the purposes of this Regulation, where appropriate. To ensure the provision of quality data for investors that is comparable, the transparency obligations of Directive 2013/34/EU should be updated to include material sustainability risks and sustainability performance based on harmonised indicators, and be reported in integrated periodical statements that incorporate both financial and non-financial information. _________________ 40 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).
Amendment 78 #
Proposal for a regulation
Recital 13
Recital 13
(13) The European Banking Authority (‘EBA’), European Insurance and Occupational Pensions Authority (‘EIOPA’) and the European Securities and Markets Authority (‘ESMA’) (collectively known as the ‘ESAs’) established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council,41 Regulation (EU) No 1094/2010 of the European Parliament and of the Council42 and Regulation (EU) No 1095/2010 of the European Parliament and of the Council43 respectively should, through the Joint Committee, develop regulatory technical standards further specifying the details of the presentation and content of the information on sustainability investment targetperformance and risks to be disclosed in pre-contractual documents, periodical reports published at least annually, and websites of financial market participants in accordance with Articles 10 to 14 of Regulation No 1093/2010, Regulation No 1094/2010 and of Regulation (EU) No 1095/2010. The Commission should be empowered to adopt those regulatory technical standards. _________________ 41 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12). 42 Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48). 43 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).
Amendment 80 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16a) The disclosure rules set out in this Regulation complement the introduction of a mandatory due diligence framework for all market participants, both investor and investee companies, including a duty of care component, to be fully phased-in within a transitional period and taking into account the proportionality principles, in line with the OECD Guidelines on due diligence, and building on the European Parliament's call for a mandatory due diligence framework in its Own-Initiative Report on Sustainable Finance (2018/2007(INI)).
Amendment 81 #
Proposal for a regulation
Recital 18
Recital 18
(18) Since the objectives of this Regulation, namely to strengthen protection ofor end- investors and information to investors, improve disclosures to them, including in caand to help financial market participants, investment advisers of cross-border purchases for end-investorand publically listed companies integrate environmental, social and governance risks into their investment strategies and company board decisions, cannot be sufficiently achieved by the Member States but can be better achieved at Union level because of the need to lay down uniform disclosure requirements at Union level the Union may adopt measures, in accordance with principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,
Amendment 83 #
Proposal for a regulation
Recital 18 a (new)
Recital 18 a (new)
(18a) To fulfil the obligations of due diligence concerning the sustainability impact and risks and to provide meaningful information to end-investors, financial market participants need reliable, comparable and harmonised disclosure of information by investee companies. Hence, targeted amendments should be introduced to Directive 2013/34/EU to include sustainability risks and performance in the disclosure obligations of listed and non-listed companies laid out in Articles 19a and 29a of Directive 2013/34/EU, and apply to these entities after a transitional period, from January 1 of the second year following the date of publication in the Official Journal of the European Union.
Amendment 86 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
This Regulation lays down harmonised rules on the transparency to be applied by financial market participants, insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice, and investee companies on the integration of sustainability risks and performance in investment decision-making process or advisory process; and on the transparency of financial products thatmaterial sustainability risks and sustainability performance of investment products, whether or not they have as their targets sustainable investments, including the reduction in carbon emissions.
Amendment 88 #
Proposal for a regulation
Article 2 – paragraph 1 – point b a (new)
Article 2 – paragraph 1 – point b a (new)
(ba) 'investee company' means listed and non-listed undertakings defined in Article 1 of the Directive 2013/34
Amendment 91 #
Proposal for a regulation
Article 2 – paragraph 1 – point h – point ii a (new)
Article 2 – paragraph 1 – point h – point ii a (new)
(iia) a "pan-European Personal Pension Product (PEPP)" as referred to in the Article 2(2) of the [PO: Please insert reference to Regulation of the European Parliament and of the Council on a pan-European Personal Pension Product (PEPP)];
Amendment 96 #
Proposal for a regulation
Article 2 – paragraph 1 – point o – introductory part
Article 2 – paragraph 1 – point o – introductory part
(o) ‘sustainable investments’ mean any of the following or a combination of any of the followingproducts associated with strategies that aim at achieving environmental, social and governance-related impact including any combination of the following, to the extent that the objectives of any one category are in accordance with, and do not significantly harm any of the objectives of the other categories below:
Amendment 99 #
Proposal for a regulation
Article 2 – paragraph 1 – point o – point i
Article 2 – paragraph 1 – point o – point i
(i) investments in an economic activity that contributes to an environmental objective, including an environmentally sustainable investment as defined in Article 2 of [PO: Please insert reference to Regulation on the establishment of a framework to facilitate sustainable investment]; , including at minimum, key resource efficiency indicators, such as use of energy, use of renewable energy, use of raw materials, production of waste, emissions, CO2 emissions, use of water, use of land, and impact on biodiversity, as laid out in the European Commission monitoring framework on the circular economy.
Amendment 108 #
Proposal for a regulation
Article 2 – paragraph 1 – point o – point iii
Article 2 – paragraph 1 – point o – point iii
(iii) investments in companies following good governance practices, and in particular companies with sound management structures and due diligence procedures, employee relations, remuneration of relevant staff and tax compliance;
Amendment 115 #
Proposal for a regulation
Article 2 – paragraph 1 – point s a (new)
Article 2 – paragraph 1 – point s a (new)
(sa) 'sustainability risks' means financial or non-financial risks, material or likely to be materialised in the long term, linked to environmental, social and governance factors, where material for a particular investment approach;
Amendment 118 #
Proposal for a regulation
Article 3 – title
Article 3 – title
Transparency of the sustainability risk policies and the sustainability performance
Amendment 121 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
1. Financial market participants shall publishhave in place written policies on the integration of sustainability risks and on their performance based on sustainability indicators in the investment decision- making process, such as in the areas of governance, asset allocation, investment strategy, risk management, the exercise of shareholder voting and company engagement; and publish a summary of them in written form on their websites.
Amendment 132 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. Insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice shall publishhave in place written policies on the integration of sustainability risks in investment advice or insurance adviceand on their performance based on sustainability indicator in investment advice or insurance advice, such as in the areas of governance, asset allocation, investment strategy, risk management, the exercise of shareholder voting and company engagement; and publish a summary of them in written form on their websites.
Amendment 136 #
Proposal for a regulation
Article 3 – paragraph 2 a (new)
Article 3 – paragraph 2 a (new)
2a. Financial markets participants and insurance intermediaries shall have 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, taking into account the 2017 OECD Guidelines 1a, and publish them in written form on their websites. _________________ 1a the OECD (2017) Responsible business conduct for institutional investors: Key considerations for due diligence
Amendment 139 #
Proposal for a regulation
Article 4 – title
Article 4 – title
4 Transparency of the integration of sustainability risks and sustainability performance
Amendment 145 #
Proposal for a regulation
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) the due diligence procedures and conditions applied for integrating sustainability risks and measuring sustainability performance in investment decisions;
Amendment 153 #
Proposal for a regulation
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) the extent to which sustainability risks are expected to have a relevant impact on the returns of the financial products made available, and where in the portfolio these sustainability risks have been identified;
Amendment 155 #
Proposal for a regulation
Article 4 – paragraph 1 – point b a (new)
Article 4 – paragraph 1 – point b a (new)
(ba) the proportion of the portfolio for which issuers provide reliable data on sustainability risks, including through the use of the information referred to in Article 7.3;
Amendment 161 #
Proposal for a regulation
Article 4 – paragraph 1 – point c a (new)
Article 4 – paragraph 1 – point c a (new)
(ca) in terms of shareholder voting with regards to sustainability performance and the mitigation of sustainability risks, the voting instructions and voting rationales behind votes against management, abstentions and contentious votes;
Amendment 166 #
Proposal for a regulation
Article 4 – paragraph 2 – point a
Article 4 – paragraph 2 – point a
(a) the due diligence procedures and conditions applied for integrating sustainability risks and measuring sustainability performance in investment advice or insurance advice;
Amendment 171 #
Proposal for a regulation
Article 4 – paragraph 2 – point b
Article 4 – paragraph 2 – point b
(b) the extent to which sustainability risks are expected to have a relevant impact on the returns of the financial products advised on, and where in the portfolio these sustainability risks have been identified;
Amendment 172 #
Proposal for a regulation
Article 4 – paragraph 2 – point b a (new)
Article 4 – paragraph 2 – point b a (new)
(ba) the proportion of the portfolio for which issuers provide reliable data on sustainability risks, including through the use of the information referred to in Article 7.3;
Amendment 176 #
Proposal for a regulation
Article 4 – paragraph 2 – point c a (new)
Article 4 – paragraph 2 – point c a (new)
(ca) in terms of shareholder voting with regards to sustainability performance and the mitigation of sustainability risks, the voting instructions and voting rationales behind votes against management, abstentions and contentious votes;
Amendment 182 #
Proposal for a regulation
Article 5 – title
Article 5 – title
5 Transparency of sustainableility risks and performance of investments in pre- contractual disclosures
Amendment 183 #
Proposal for a regulation
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. Where a financial product has as its target sustainable investments or investments with similar characteristicsn investment product is put on the market, and an index has been designated as a reference benchmark, the information to be disclosed pursuant to Article 4(1) shall be accompanied by the following:
Amendment 187 #
Proposal for a regulation
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) information on how the designated index is aligned with that targeinvestment product;
Amendment 192 #
Proposal for a regulation
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) an explanation as to why the weighting and constituents of the designated index aligned with that targeinvestment product differ from a broad market index.
Amendment 196 #
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Where a financial product has as its target sustainable investments or investments with similar characteristics and no index has been designated as a reference benchmark, the information referred to in Article 4(1) shall include an explanation on how that target is reachedn investment product has no index designated as a reference benchmark, the information referred to in Article 4(1) shall include a description of its sustainability performance using the indicators of sustainability risk and impact defined in Article 2.
Amendment 204 #
Proposal for a regulation
Article 6 – title
Article 6 – title
Transparency of sustainableility risks and performance of investments on websites
Amendment 208 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1 – point a
Article 6 – paragraph 1 – subparagraph 1 – point a
(a) a description of the sustainable investment target; for investment products targeting sustainable objectives
Amendment 209 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1 – point b
Article 6 – paragraph 1 – subparagraph 1 – point b
(b) information on the methodologies used to assess, measure and monitor the impact of the sustainablsustainability performance of the investments selected for the financial product, including its data sources, screening criteria for the underlying assets and the relevant sustainability indicators used to measure the overall sustainable impact of the financial product;
Amendment 211 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 2
Article 6 – paragraph 1 – subparagraph 2
The information to be disclosed pursuant to the first subparagraph shall be published in a clear way and in a prominent area of the website, be easily accessible and easy to understand, using clear and plain language.
Amendment 214 #
Proposal for a regulation
Article 7 – title
Article 7 – title
Transparency of sustainableility risks and performance of investments in periodical reports
Amendment 215 #
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. Where financial market participants make available a financial product referred to in paragraphs (1), (2) and (3) of Article 5, they shall include a description of the following in periodical reportsaudited, integrated reports, conducted at least annually and containing both financial and non-financial information:
Amendment 219 #
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) the overall sustainability-related impact and performance by the financial product by means of relevantharmonised and comparable sustainability indicators;
Amendment 222 #
Proposal for a regulation
Article 7 – paragraph 1 – point b a (new)
Article 7 – paragraph 1 – point b a (new)
(ba) Publically listed companies shall include a description of how sustainability performance and risks have been incorporated in the management processes and investment strategy in the annual financial statements and consolidated financial statements referred to in Directive 2013/34/EU.
Amendment 223 #
Proposal for a regulation
Article 7 – paragraph 2 – point h a (new)
Article 7 – paragraph 2 – point h a (new)
(ha) for listed and non-listed companies, in accordance with the periodical statements referred to in Articles 19a and 29a of Directive 2013/34.
Amendment 224 #
Proposal for a regulation
Article 7 – paragraph 3
Article 7 – paragraph 3
3. For the purposes of paragraph 1, financial market participants mayshall use the information in management reports in accordance with Article 19 or the information in non-financial statements in accordance with Article 19a of Directive 2013/34/EU where appropriate, while ensuring the information to end-investors is presented in a clear manner that is easy to understand and access.
Amendment 237 #
Proposal for a regulation
Article 10 a (new)
Article 10 a (new)
Article 10a Amendments to Directive 2013/34/EU Directive 2013/34/EU is amended as follows: (1) In Article 19a(1) and Article 29a(1), the following subparagraphs are added: ‘(f) the sustainability risks relevant to the particular business as defined in Article 2(a) of [PO: Please insert reference to Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341 and Directive 2013/34/EU], enabling financial market participants as defined in Article 2(s a) of that Regulation to meet their sustainability risk disclosure and mitigation obligations as defined in Article 4 and 5 of that Regulation;’. '(g) the performance measured against sustainability indicators relevant to the particular business and industry, based on a list of harmonised sustainability indicators to be developed and updated by the European Commission, in coherence with [PO: Please insert reference to Regulation on the establishments of a framework to facilitate sustainable investment];'.
Amendment 239 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
By [PO: Please insert date 360 months after the date of entry into force], the Commission shall conduct an evaluation of the application of this Regulation. This evaluation shall include an assessment of the impact of the availability and quality of issuer's data on the ability for financial market participants to integrate sustainability risk in product disclosures and in investment decisions.
Amendment 241 #
Proposal for a regulation
Article 11 – paragraph 1 a (new)
Article 11 – paragraph 1 a (new)
2. The Commission shall present legislative proposals to revise Directive 2014/95/EU and Directive 2013/34/EU to improve corporate sustainability risk reporting.
Amendment 245 #
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
However, Article 5(5), Article 6(2), Article 7(4), Article 9(2) and Article 10 shall apply from [PO: Please insert the date of entry into force] and Article 7(1) to (3) and Article 10a shall apply from [PO: Please insert January 1 of the year following the date referred to in the second subparagraph].