This briefing paper says that Europe needs to toughen-up its regulations for how investors deal with environmental and social risks. It is based on the joint submission by Global Witness and Friends of the Earth Europe, on 31st January 2016, in response to the European Commission’s call for evidence on the EU regulatory framework for financial services
The report says the EU’s financial regulatory system is woefully inadequate in giving guidance to financiers on how to assess and mitigate environmental and social risks in their investments, and in applying sanctions when things go wrong. It says the EU may use the Capital Market Union (CMU) process – of which this “call for evidence” is a part – to weaken, rather than strengthen, rules for investors.
