Online discussion for policy wonks on how the EU sustainable corporate governance initiative can be focused on helping directors and financial markets to develop and connect sustainability strategies, target setting, transition plans and reporting obligations.
Meeting the goal of the EU Green Deal to achieve no net GHG emissions by 2050 requires at least half trillion euros of additional investments in the EU every year and will involve significant market and regulatory changes targeting every sector of the economy. This will profoundly change how companies and their directors need to integrate sustainability concerns in their strategies and business decisions. The magnitude of risks and opportunities is unprecedented, as summarised by EU Commissioner Mairead McGuinness for Financial services this December: “When addressing the major challenges that lay ahead, we are faced with some tough choices, especially about where we direct future financing and investment (...) If we get this right, we’ll embrace enormous transformation opportunities by making sure we channel investment into companies that can deliver on our green and sustainable objectives."
The reform of the EU Non-Financial Reporting Directive and the new Sustainable Corporate Governance initiative are two main tools that will be presented in 2021 by the European Commission to smooth the transition for companies and financial actors, increase market stability, and ensure that impacts in value chains are accounted for.
The positive impact of each initiative is closely connected, however, the broad examination of corporate governance conducted by DG Justice has recently opened a heated debate.
This event aims to take a sober look at the connection between the non-financial reporting and the corporate governance reforms, with the objective of building consensus on the critical changes needed for the success of the system, without reinventing the wheel or breaking what works.