Read our response to the European Commission’s proposal on Sustainable Corporate Governance here.

How Sustainable Corporate Governance fits with other European Regulatory initiatives

The European Green Deal

On 11 December 2019, the Commission presented the European Green Deal, a growth strategy aiming to make Europe the first climate-neutral continent by 2050; it is supported by a 2030 climate target plan to reduce its emissions to 55% of its 1990 emissions level. The European Green Deal Investment plan, will mobilise at least €1 trillion of sustainable investments over the next decade.

On 14 July 2021, the European Commission adopted a set of proposals to make the EU’s climate, energy, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

Two overarching initiatives of the EU support this agenda:
  • The sustainable corporate governance agenda
  • The sustainable finance agenda 

Together these initiatives seek to direct investments towards sustainable projects. By creating a clear taxonomy which establishes the actual list of environmentally sustainable activities along with the proposed revised reporting requirements of corporates, we can expect to see a transformation in that sustainability reporting is placed on a par with financial reporting, and capital is encouraged to flow to those activities which most contribute to the EU’s Green Deal.