In September 2015, the UN General Assembly adopted the ‘2030 Agenda’, which set the global frame for Sustainable Development. The starting point for the agenda is the UN’s 17 world goals and is called Sustainable Development Goals (SDG). The global goals are based on the three aspects of sustainability: social, economic and environmental. On the basis of this, the EU Commission developed the EU Green Pact, which was published on December 11th 2019.
The EU Green Pact aims to ensure sustainability, increase resource efficiency, promote the circular economy and create climate neutrality and resilience. Here, the EU commits, among other things, to three ambitious climate and energy goals by 2030.
To achieve the goals, the financial sector is involved to promote sustainable financing and green investments. This is initiated through the EU Commission Action Plan. Among other things, the plan includes the EU regulation on sustainable financing, the so-called ESG Regulation (ESG: Environmental, Social and Governance).
The Regulation applies to companies in the financial sector in relation to their publication of their sustainability (ESG) information related to their financial products.
The purpose of the Regulation is to harmonize financial investment information about sustainability aspects. This is so that shareholders can assess the environmental and social sustainability of investments, and make qualified investment decisions.
Here you can read more about the ESG-regulation itself.