Big Investors Warn EU Not To Bow To ESG Backlash

A group of investors representing €6.6 trillion (about R127 trillion) of assets is calling on European officials not to cave in to mounting pressure to scale back the bloc's environmental, social and governance (ESG) regulations.

- Frances Schwartzkopff

The planned reporting rules are essential to help asset managers and owners identify where to allocate funds, according to the group, which consists of the Institutional Investors Group on Climate Change, the European Sustainable Investment Forum and the Principles for Responsible Investment.

Any adjustments should be limited to technical standards and guidance on implementation, the group said yesterday.

The alternative, namely reopening European ESG requirements "in their entirety, risks creating regulatory uncertainty and could jeopardise" Europe's goal of living up to its Green Deal, which is enshrined in law, the joint statement said.