The Principles for Responsible Investment (PRI) has published its 2030 EU Policy Roadmap, outlining important suggestions for European policy makers to speed up private investment in the economic transition. The report provides policy measures and tools accessible to the next Commission to establish a financial system that incentivizes responsible investment, operates within planetary boundaries, and promotes fair societies. It serves as a starting point for the PRI’s discussion with the next European Commission, European Parliament, and the Member States.
Despite significant progress since the 2018 Action Plan on Financing Sustainable Growth, difficulties remain in implementing sustainable finance policies. While welcomed by responsible investors, the complexity and speed of legislative measures have presented major obstacles. Additionally, the focus on improving corporate and investor disclosure has resulted in other crucial aspects of sustainable finance being disregarded.
Elise Attal, PRI’s Head of EU Policy, states: “The next 5-year mandate will be crucial and, while a lot has been achieved, further policies will still be needed to truly unlock private investment and fully support the sustainable economic transition. The next Commission should focus on refining and improving the usability and coherence of the existing sustainable finance framework, building on it where necessary, and strengthening the connections with broader EU Green Deal policies. This is necessary to achieve a coherent policy framework that considers sustainability risks, opportunities and impact by investors and companies.”
To tackle these challenges and achieve the goals of the EU Green Deal, the PRI calls for unified and transformative policy measures. The economic transition requires immediate and tailored steps to enhance the existing sustainable finance framework and to align it with broader EU Green Deal policies. The report outlines six policy priorities to accomplish this – each with a specific chapter. Among other key actions, the European Commission, alongside the Parliament and Council, must strive to:
With the recommendations detailed in the report and based on extensive interviews, surveys, and roundtable discussions with PRI signatories and key stakeholders, the PRI aims to guide the next European Commission, Parliament, and Member States in advancing sustainable finance policies. PRI remains dedicated to promoting conversation and cooperation to shape and implement a strong policy framework that enables investors to facilitate the private finance necessary for the economic transition.
