Future European Union (EU) initiatives must “consider the specificities” of pension funds and support the transition to carbon-neutral in a “realistic way” for the whole sector, PensionsEurope has said.

Publishing a release on developments one year on from the publication of the EU Sustainable Finance Strategy, the association said that some initiatives have moved forward, and others are still pending.

The EU Sustainable Finance Strategy was published by the European Commission on 6 July 2021. It is built on previous initiatives and reports, such as the report of the High-Level Expert Group on Sustainable Finance and the subsequent legislative package in 2018. The strategy sets out how it will support the EU Green Deal and Europe’s transition to becoming a carbon-neutral continent by 2050.


“Initiatives such as the further development of the green taxonomy, SFDR level 2 regulation, finalisation of the Corporate Sustainability Reporting Directive (CSRD), the European Single Access Point (ESAP) and the Corporate Sustainability Due Diligence Duty (CSDDD) etc., have been published and are progressing.

“Those are crucial initiatives to support Europe’s transition to becoming a carbon-neutral continent by 2050. Still to come are the EU proposals on initiatives such as the review of the fiduciary duties of pension funds to reflect sustainability impacts, the social and extended taxonomy, the EU sustainability reporting standards etc,” Pensions Europe stated.

The association noted the “long tradition” of pension funds aligning their investments with the values and preferences of their members and beneficiaries and the society at large.

“Environmental, social and governance (ESG) risks and climate change risks play a significant role in risk management. Pension funds are vocal about sustainability and are increasing their level of ambition of their responsible investment policies. Future EU initiatives need to consider the specificities of pension funds and support transition in a realistic way for the whole sector,” PensionsEurope concluded.

Share Story: