European Securities and Markets Authority to hold hearing on how to promote sustainability in EU capital markets

The European Securities and Markets Authority (ESMA) will hold an open hearing on the following consultation papers:

  1. Consultation on integrating sustainability risks and factors in MiFID II
  2. Consultation on integrating sustainability risks and factors in the UCITS Directive and AIFMD
  3. Consultation on Disclosure Requirements Applicable to Credit Ratings

The hearing is scheduled for February 4, 2019 in Paris.

According to the announcement, ESMA’s three public consultations on sustainable finance initiatives support the European Commission’s (EC) Sustainability Action Plan in the areas of securities trading, investment funds and credit rating agencies (CRAs).

The first two consultations seek stakeholders’ input on draft technical advice for the integration of sustainability risks and factors into the Markets in Financial Instruments Directive II (MiFID II) (securities trading) and the Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings in Collective Investment in Transferable Securities (UCITS) Directive (investment funds). While the third consults on CRA guidelines aimed at improving the quality and consistency of disclosures of environmental, social and governance (ESG) factors when considered as part of a credit rating action.

The consultations focus on environmental, social and good governance considerations with regards to investment firms, investment funds and CRAs. The draft advice and proposed guidelines touch upon organisational requirements, operating conditions, risk management, conflicts of interest, product governance and disclosure requirements.