FEM logo
Fund EcoMarket

the sustainable, responsible and ethical investment information hub

SRI Services response to ESMA Consultation Paper ‘On Integrating sustainability risks and factors into MIFID II’

February 21st, 2019

SRI Services was delighted to have had the opportunity to respond to the ESMA Consultation Paper ‘On Integrating sustainability risks and factors into MIFID II’ earlier this week (even though it did seem a bit strange doing so given Brexit…)

In brief, the paper (European Securities and Markets Authority – ESMA35-43-1210)  proposes ESG/Sustainability related fact finding and the setting up of the necessary support mechanisms that will enable (require) this area to be brought into the advice process  (ie general organisational requirements, revised suitability guidelines,  support systems, product labelling, risk assessment, governance, compliance etc) .

Some background:

The consultation follows on from the EU Climate Action Plan and the work of the HLEG (High Level Expert Group) that a number of highly regarded UK investment organisations were involved in drafting – as well as previous consultation that I (and other SRI specialists) have previously responded to.

It also follows on from work that a number of us in this area were involved in as part of an UKSIF project in the early 2000’s  – when this area was discussed with the (then) FSA…

Some context:

Those who know me will be aware that I wholly support this change.

This is in part because I believe considering this area is part of giving the best possible service to clients (many of whom are interested in these issues), partly because it can help protect clients from investment risks and gives them exposure to often hidden investment opportunities – and also because I believe we need all investors ‘on board’ if we are to address sustainability related challenges – particularly climate change.

Below are links to two versions of our response.

Note:

As the deadline for this paper was shortly after the FCA climate change consultation deadline so was not able to spend as much time on this as I would have liked – but nonetheless I hope the key points are covered in the response we submitted.

Sign Up to our Newsletter

If you are a Financial Services Industry professional you can sign up for our newsletter

Click Here

Latest News

SRI Services response to FCA SDR and labels consultation DP21/4
January 17, 2022

I am delighted to share our response to the FCAs recent ‘Sustainability Disclosure Requirements (SDR) and investment labels‘ discussion paper. Our response was rather lengthy,  so you may prefer to focus on the summary of key points below (the text below is ‘as submitted’): Download our response here: FCA SDR DP 21 4 SRI Services […]

Top 50 Fund EcoMarket sustainable investment searches 2021
January 17, 2022

  Below is a list of the top 50 filter options selected by Fund EcoMarket users during the course of 2021. This shows that, as in previous years, a wide range of filters are used by Fund EcoMarket users, most probably as that is what is required in order to offer advice on sustainable investment […]

ShareAction report on asset managers’ proxy votes
December 17, 2021

ShareAction has just published their 2021 report on shareholder voting. The gist of the report is that many shareholders, most importantly amongst them the largest (because they have the most votes) are not supporting shareholder resolutions on environmental and social issues – even when their proxy advisers are recommending they should. There will doubtless be […]