Global Trustee and Fiduciary Services News and Views Issue 50

Prime, Futures and Securities Services | XXXXXX 22 THE EC IS PROPOSING NEW RULES FOR A MORE SUSTAINABLE FUTURE... SUSTAINABILITY SERIES DISCLOSURE Risks Having firms disclose how they integrate ESG risks into their investment decisions. BENCHMARKS Contributing to low-carbon goals and transitioning with positive carbon targets. SUITABILITY Asking retail investors about sustainability preferences and tailoring products accordingly. BUT THIS IS JUST THE START… The March 2018 sustainable action plan has six more actions that the EC will take between now and the end of this mandate, running between 2019 and 2022 . WHAT’S THE RATIONALE? Putting environmental , social and governance (ESG) risks at the heart of the investment process to make it easier and less costly to identify sustainable investments. WHAT ARE THE AIMS? Published on 24 May 2018, the EC’s new legal framework has four overarching aims that it hopes to achieve… TAXONOMY Unifying the EU classification system. …WITH FURTHER FOCUS TO COME In particular, the EC supports a Green Supporting Factor , boosting green investments and loans, and incorporating sustainability into prudential requirements and corporate governance. DISCLOSURE Guidance Making ESG risks part of investment decisions through clear investor guidance.