Kempen Capital Management takes an active role in contributing to a wide range of consultations on EU regulations. In a white paper, Johan Vanderlugt (Lead Expert Environment, Social and Governance Advisory at Van Lanschot Kempen) and Eszter Vitorino (Senior Advisor Impact & Sustainable Investment at Kempen Capital Management) discuss their seven findings from the EU sustainable finance regulation.
The long-term sustainability agenda of the EU represents many opportunities for both the financial sector and investors. With a greater portion of investments directed to sustainability, asset managers that offer truly sustainable finance solutions are well-positioned. Admittedly, the workload may be substantial impacting many elements within the investment value chain ranging from portfolio construction to client documentation and reporting, IT infrastructure and ESG data provider relationships.
The seven findings:
- An opportunity for Europe and for its finance sector
- Building on existing guidelines and commitments
- More transparency for the end investor is helpful
- ESG data availability and quality need to improve
- A central ESG data repository would be helpful
- Greater standardisation of sustainability reporting is needed
- No requirements with regard to independent verification or audit processes