Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Competitiveness
• Innovation

Climate Goals & Targets

Environmental Challenges

• The EU's global footprint has shrunk worryingly, lagging behind the US and China in GDP share.
• The EU financial system's competitiveness has been hampered by excessive regulation, leading to high implementation costs and limited economic impact.
• Excessive reliance on bank lending by non-financial companies.
• Fragmentation of EU financial markets.
• Lack of liquidity to finance SMEs.
• Insufficient investment in the EU compared to the US.
• Structural bias in the allocation of European savings that benefits non-EU jurisdictions.
• Insufficient number of pension funds in the EU.
• Risk aversion among retail investors.
• Complexity and burden of EU regulations.
• Inconsistencies between regulations contributing to the Sustainable Finance agenda.
• Inconsistencies and extreme complexity in the regulatory treatment of securitization.
• Insufficient development of EU equity markets.
• Underdeveloped private equity and venture capital in Europe.
• Lack of a vibrant equity culture in Europe.
• Growing gap between investments required to meet the Green Deal's goals and the current level of investment.

Mitigation Strategies

• Refocus the regulatory agenda to facilitate prudent risk-taking and investments.
• Carry out credible independent competitiveness tests ahead of any new regulatory proposal.
• Ensure a level playing field with non-EU jurisdictions.
• Accelerate the translation of EU green and digital investment programs into concrete projects.
• Improve visibility and readability, and reduce red tape hindering access to EU and Member State support programs.
• Review the mandates and governance of EU regulatory authorities.
• Make ESAs fully accountable to co-legislators.
• Deepen dialogue with practitioners.
• Develop group (i.e., lead) supervisor responsibilities.
• Promptly implement regulatory changes needed to remove obstacles to cross-border investments.
• Make the regulatory process more agile and better aligned with policy goals.
• Increase retail investors’ financial literacy.
• Avoid designing consumer protection rules on the basis of risk avoidance.
• Boost the EU financial sector’s contribution to growth and job creation.
• Improve administrative, housing, and school facilities.
• Develop much larger EU equity markets.
• Broaden the mandate of the EFSI or EIF.
• Encourage more transparent, intelligible, and affordable credit and ESG ratings.
• Strengthen the EU’s competitiveness and global market reach.
• Incentivise investing public and private savings in equity markets.
• Enhance the quality of information accompanying packaged retail and insurance-based investment products.
• Avoid initiatives that could limit access to a human financial adviser.
• Disconnect consumer protection and risk avoidance, and profitability and low-cost services.
• Improve the financial education of retail investors.
• Radically simplify the EU's ESG framework.
• Prevent misunderstandings and greenwashing opportunities.
• Adjust calendars to ensure data availability before reporting requirements.
• Promote transparency and comparability in commitments.
• Ensure interoperability between key jurisdictions.
• Allow securitisation to play its key role.
• Enable market participants to better manage and share risks.
• Carry out an in-depth review of applicable regulations.
• Leverage the EIB or EIF to develop a strong EU guarantee scheme.
• Support EU investment programs.
• Design a digital euro.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Climate disasters
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Green transition investments