EU Ecolabel for retail financial products
With European households owning around 30% of total financial assets, regulation should aim to unleash the potential contribution of EU savers to finance the transition to a climate-neutral economy by 2050. However, investors who wish to make a positive impact may struggle to identify the right investment products. The EU Ecolabel aims to help EU savers navigate the growing maze of ESG products and find the right investment that suits their preferences.
EFAMA believes that the labels´ eligibility conditions should strike the right balance between the level of strictness and diversification opportunities, to ensure both environmental integrity and sufficient protection of investors´ savings. As the Ecolabel penetrates the market and Europe´s Green Deal accelerates, the eligibility thresholds for the label should be gradually tightened.
EFAMA reply to JRC CP on 3rd technical report: Development of EU Ecolabel Criteria for Retail Financial Products
EFAMA's comments on JRC's 2nd Technical Report on Development of EU Ecolabel Criteria for Retail Financial Products
The European Fund and Asset Management Association (EFAMA) has published its latest Market Insights report titled “ESG Investing in the UCITS Market – A powerful and inexorable trend”. The report looks at the major trends in the ESG UCITS market, the impact of the coronavirus pandemic, and the behaviour of ESG and non-ESG funds.
Q #1 Can the EU Ecolabel for retail financial products help channel individual investors’ savings into environmentally sustainable projects?
A well-designed EU Ecolabel has the potential to provide clear guidance on the financial products retail investors can invest in if they wish to support environmentally sustainable projects and activities - in line with the EU Taxonomy Regulation. The European Commission wants to create a trusted and verified label for retail investors, who would benefit from better comparability of financial products.