NGOs urge EU policymakers to prioritise sustainable finance 

November 3rd, 2023

A group of over 20 NGOs coordinated by responsible investment charity ShareAction are calling on European policymakers to make sustainable finance a top priority in the 2024-2029 EU agenda.

The group has published a manifesto with recommendations for the next European Commission, which include accelerating investments in Europe’s transition to a zero-carbon and inclusive economy by creating new definitions for harmful business activities.

It also recommends the European Commission get tougher on curbing greenwashing and social washing by developing minimum mandatory criteria for a sustainable investment product.

The manifesto also calls for the European Commission to bring forward legislation to increase the amount of capital banks and insurers must hold relative to their fossil fuel investments to price in climate related risks.

The European Commission is approved by the European Parliament, with elections due to take place from 6th to 9th June 2024 and sitting until 2029.

This timeline means the new Commission will have the last opportunity to implement policies to meet 2030 targets set out in the Paris Agreement and Sustainable Development Goals.

Maria van der Heide, head of EU policy at ShareAction, said: “Banks, insurance companies, and investors continue to finance activities that deepen the climate crisis, violate human rights, and harm nature.

“Although EU institutions and governments have introduced some sustainable finance regulation in recent years, it falls short of what is needed to support businesses to transition to a sustainable economy and protect people and planet.”

She adds: “We need to see bold action from EU policymakers to ensure that the financial sector powers solutions, not problems.”