The German Government has assigned the Sustainable Finance Committee with a counselling role in the elaboration of a national financial strategy, and it has commissioned it with the development of recommendations for action. In its interim report, the advisory council has published the following recommendations (extract):
The European pension supervisory authority clarifies that pension funds are not obliged to consider so-called ESG criteria (environmental, social and governance or environmental, social and corporate governance) when investing in shares or pensions.
The institutions of the BAV have no obligation, but only the option to consider ESG criteria when investing. Solely the obligation to provide information to the members of the pension fund exists as to whether and to what extent environmental, climate, social and corporate management aspects are taken into account in the investment policy.
According to experts, however, the risks that arise from non-compliance with ESG criteria must be noted. The EU launches an initiative to update non-financial reporting (NFRD). The IASB announced that it would submit a renewed sustainable strategy later this year, which will include a revision of the Non-Financial Reporting Directive (NFRD).
As a first step, an “Inception Impact Assessment” was published. The paper shows the following current problems:
The IASB identifies three options that could be used to solve these problems:
Stakeholders have the opportunity to comment on the impact assessment in Q1 / 20.
Envoria is following the legal discussions. New legal requirements are constantly implemented in our software.
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