“A lot is about common sense; there isn't time to wait for the perfect solutions. This obviously applies to the climate, but it also clearly applies to social issues. Politicians may be equipped with the sharpest tools – but the financial sector has a very important role to play.”
This was the message from Finansinspektionen's Head of Sustainable Finance Johanna Fager Wettergren when she spoke about sustainable investments at PwC's Finance Day. She also highlighted that it is possible for the financial sector to contribute to sustainable development in social matters.
Speaker: Johanna Fager Wettergren
Meeting: PwC's Finance Day
One topic that has been discussed, and brought to the forefront as a result of the development in Ukraine, is the requirements that apply for investments to be classified as environmentally sustainable according to the Taxonomy Regulation. She asserted that this requires that the Regulation's so-called minimum safeguards are respected. These safeguards require, for example, that an investor must verify that an undertaking that is carrying out an economic activity is aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights if an investment in the undertaking is to be classified as environmentally sustainable under the Regulation. She also stated that the similar requirements apply when investments are to be classified as sustainable according to the Sustainable Finance Disclosure Regulation.
She continued by explaining that pending regulations aim to steer the investments towards a more sustainable development. She also pointed out that the responsibility to find forms for applying the new regulations lies with the firms impacted by the rules. But, she also stated that FI is now placing a focus on pursuing a dialogue with individual firms, industry representatives, and other stakeholders to answer questions about the new regulations and develop practices.