Getting serious about sustainable finance: “We need taxonomy, we need disclosures, we need green labels” says EU official
Australian businesses and investors who are serious about sustainable finance should seriously watch the webinar, “Post COP26 – The global momentum for sustainable capital to address social and environmental challenges” (recorded link here) held on Wednesday 24 November 2021.
The EU’s Director for General Affairs at the Directorate General for Financial Stability, Financial Services and Capital Markets, Paulina Dejmek Hack, was part of an impressive list of guests who dug a little deeper into making sustainable finance a reality. And her message was clear.
“It is no longer a question of ‘if’ but rather ‘how’,” Ms Hack said about EU business approaches to sustainable finance and climate action. “Of course that’s where we need taxonomy, we need disclosures, we need green labels to basically help the corporate sector to help themselves to a certain extent, and help all of us.”
She says the EU is “absolutely convinced” of the need for a common classification taxation system that allows businesses to determine if a project is green and to prevent greenwashing, and “obviously we want to make sure that we channel investments into green sustainable projects.”
Ms Hack explained transparent disclosure on climate reporting would provide greater certainty for businesses and green labels would boost investment in corporate climate action.
She said in recent months the EU adopted further strategies on the climate action front including ensuring all sectors of society participate in a fair transition to a climate-neutral world; looking for examples to use gas to help transform global energy supplies to meet net-zero 2050 targets; legislating greater involvement of ESG (Environmental, Societal and Governance) risk management within banks and insurers; and, finally, greater international cooperation.
The event was organised by the Australian Sustainable Finance Initiative and Climate KIC with the support of the EU Climate Network and funding from the European Union.
The webinar was moderated by Nadia Daly from the ABC ‘s 7.30 Report. The event also featured the Head of International Department, Reserve Bank of Australia, Alex Heath; British Consul General and Deputy Trade Commissioner, Asia Pacific for Australia and NZ, Louise Cantillon; Australia’s Ambassador for the Environment, Jamie Isbister; Global Head of Sustainable Finance, National Australia Bank, David Jenkins; Chief Operating Officer, Insurance Council of Australia, Kylie Macfarlane; and Chief Executive Officer, Australian Council of Superannuation Investors Louise Davidson.
