19 July 2022
In Europe, the climate problem has gained momentum in recent years. This is evidenced by the ever-evolving regulations on sustainability and corporate responsibility, both financial and non-financial. The Green Deal of the European Union, for example, aims to make Europe a climate-neutral continent by 2050. It provides a major investment plan to finance the transition to a green, sustainable and climate-neutral economy.
As a financial sector, we therefore welcome the new European regulations that will allow banks, insurers and intermediaries to gauge the sustainability preferences of customers who wish to purchase financial savings and investment products from 2 August. By better aligning customer preferences with sustainable savings and investment options, the green portfolio continues to grow and banks and insurers can take on a greater social role by putting their shoulders to the wheel for the sustainable transition of our society.
The transition to a more sustainable society will also require adjustments to existing EU legislation, which must remain in line with the European Union's climate ambition. There is a role for everyone and at all levels to achieve the goals of climate neutrality and transition finance – including the financial sector. Banks, insurers and intermediaries must be able to "redirect" financing and investments to "sustainable" activities.
An important step, therefore, a role that the financial sector loyally wants to fulfill, but where banks, insurers and intermediaries are also confronted with an important concern. Although the obligation to inform and question customers about sustainability will take effect from August 2, the necessary, supporting European implementation decisions to be able to properly follow up on this obligation will only take effect from January 2023. In concrete terms, this means that banks, insurers and intermediaries are currently confronted with loopholes in European legislation that make it impossible for them to provide customers with all the correct information, with an impact on the reliability of the information and a lack of savings and investment products that also will meet the new requirements. While banks and insurers will work hard to bring fair and sustainable product offerings to the market, we run the risk that these difficulties will dampen customer enthusiasm and confidence in sustainable investments, which is obviously far from the mind of the European regulator .
The sector therefore has to operate - against its will - in an unstable EU regulatory framework, where the financial sector needs clarity in order to operate legitimately. The customer expects nothing more or less from his trusted banking and insurance institution and that is more than justified.
Hein Lannoy – CEO Assuralia
Karel Baert – CEO Febelfin
Together, both organizations represent 335 members, active in the Belgian banking and insurance world.