Sustainable Finance Regulations, Rules, and Guidelines in the European Union and United States—Time to Get Prepared
Due to the increasing awareness of the importance of environmental, social, and governance ("ESG") initiatives, the European Commission came forward at the end of May 2018 with a proposal related to this topic. The proposal is intended to reorient capital flows toward sustainable investments, manage financial risk stemming from climate change, and foster transparency and a long-term outlook for the financial economic activity.
Other similar initiatives are underway around the world, creating a quickly evolving regulatory landscape. Financial market participants should take note.
