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European Parliament 2014-2019 Committee on Economic and Monetary Affairs Committee on the Environment, Public Health and Food Safety 2018/0178(COD) 17.12.2018 AMENDMENTS 124 - 385 Draft report Bas Eickhout, Sirpa Pietikäinen (PE630.512v01-00) Establishment of a framework to facilitate sustainable investment Proposal for a regulation (COM(2018)0353 – C8-0207/2018 – 2018/0178(COD)) AM\1172566EN.docx PE632.153v01-00 EN United in diversity EN AM_Com_LegReport PE632.153v01-00 2/162 AM\1172566EN.docx EN Amendment 124 Fulvio Martusciello Proposal for a regulation Title 1 Text proposed by the Commission Amendment Proposal for a Proposal for a REGULATION OF THE EUROPEAN REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL PARLIAMENT AND OF THE COUNCIL on the establishment of a framework to on the establishment of a framework to facilitate sustainable investment facilitate sustainable finance (Text with EEA relevance) (Text with EEA relevance) Or. en Amendment 125 Mireille D'Ornano Proposal for a regulation Recital 1 Text proposed by the Commission Amendment (1) Article 3(3) of the Treaty on (1) Article 3(3) of the Treaty on European Union aims to establish an European Union aims to establish an internal market that works for the internal market that works for the sustainable development of Europe, based sustainable development of Europe, based among others on balanced economic among others on balanced economic growth and a high level of protection and growth and a high level of protection and improvement of the quality of the improvement of the quality of the environment. environment. The results achieved in terms of both economic growth and environmental protection are very far removed from the objectives referred to here. Or. fr Amendment 126 Simona Bonafè, Luigi Morgano Proposal for a regulation Recital 1 AM\1172566EN.docx 3/162 PE632.153v01-00 EN Text proposed by the Commission Amendment (1) Article 3(3) of the Treaty on (1) Article 3(3) of the Treaty on European Union aims to establish an European Union aims to establish an internal market that works for the internal market that works for the sustainable development of Europe, based sustainable development of Europe, based among others on balanced economic among others on balanced economic growth and a high level of protection and growth, social progress and a high level of improvement of the quality of the protection and improvement of the quality environment. of the environment. Or. en Amendment 127 Simona Bonafè, Luigi Morgano Proposal for a regulation Recital 3 a (new) Text proposed by the Commission Amendment (3 a) In November 2017, the European Parliament, the Council and the Commission proclaimed and signed the European Pillar of Social Rights, in favour of a Europe that tackles unemployment, poverty and discrimination, giving equal opportunities to the young and vulnerable. A comprehensive and deep implementation of the pillar can be facilitated by making financial flows consistent with such a pathway. Or. en Amendment 128 Mireille D'Ornano Proposal for a regulation Recital 4 Text proposed by the Commission Amendment (4) Sustainability and the transition to a (4) Sustainability and the transition to a low-carbon and climate resilient, more low-carbon and climate resilient, more resource-efficient and circular economy are resource-efficient and circular economy are PE632.153v01-00 4/162 AM\1172566EN.docx EN key in ensuring long-term competitiveness key in ensuring long-term competitiveness of the Union’s economy. Sustainability has of the Union’s economy. Sustainability has long been at the heart of the European long been at the heart of the European Union project and the Treaties give project and the Treaties give recognition to recognition to its social and environmental its social and environmental dimensions, dimensions. but it remains wishful thinking, considering how disappointing its results are from a social and environmental point of view. Or. fr Amendment 129 Luigi Morgano Proposal for a regulation Recital 4 a (new) Text proposed by the Commission Amendment (4 a) The High-Level Task force on Investing in Social Infrastructure in Europe published in January 2018 its Report, estimating the minimum gap in social infrastructure investment in the EU at EUR 100-150 billion per year, and a total gap of over EUR 1.5 trillion in 2018- 2030. Or. en Amendment 130 Luke Ming Flanagan Proposal for a regulation Recital 4 a (new) Text proposed by the Commission Amendment (4 a) Major trade deals such as TTIP, CETA, JEFTA etc and the resultant increased mass transit of goods can have a major negative environmental impact; Or. en AM\1172566EN.docx 5/162 PE632.153v01-00 EN Amendment 131 Stefan Gehrold Proposal for a regulation Recital 5 Text proposed by the Commission Amendment (5) In December 2016, the Commission (5) In December 2016, the Commission mandated a High-Level Expert Group to mandated a High-Level Expert Group to develop an overarching and comprehensive develop an overarching and comprehensive Union strategy on sustainable finance. The Union strategy on sustainable finance. The report of the High-Level Expert Group report of the High-Level Expert Group published on 31 January 201824calls for the published on 31 January 201824 calls for creation of a technically robust the creation of a technically robust classification system at Union level to classification system at Union level to establish clarity on which activities are establish clarity on which activities are ‘green’ or ‘sustainable’, starting with ‘green’ or ‘sustainable’. Activities which climate change mitigation. help to lessen the human influence on climate change should be classified first. _________________ _________________ 24 EU High-Level Expert Group on 24 EU High-Level Expert Group on Sustainable Finance Final Report, Sustainable Finance Final Report, Financing a Sustainable European Financing a Sustainable European Economy, available at: Economy, available at: https://ec.europa.eu/info/sites/info/files/180 https://ec.europa.eu/info/sites/info/files/180 131-sustainable-finance-final- 131-sustainable-finance-final- report_en.pdf. report_en.pdf. Or. de Amendment 132 Simona Bonafè, Luigi Morgano Proposal for a regulation Recital 6 Text proposed by the Commission Amendment (6) In March 2018, the Commission (6) In March 2018, the Commission published its Action Plan 'Financing published its Action Plan 'Financing Sustainable Growth'25 setting up an Sustainable Growth'25 setting up an ambitious and comprehensive strategy on ambitious and comprehensive strategy on sustainable finance. One of the objectives sustainable finance. One of the objectives set out in that Action Plan is to reorient set out in that Action Plan is to reorient capital flows towards sustainable capital flows towards sustainable investment in order to achieve sustainable investment in order to achieve sustainable and inclusive growth. The establishment of and inclusive growth. The establishment of PE632.153v01-00 6/162 AM\1172566EN.docx EN a unified classification system for a unified classification system for sustainable activities is the most important sustainable activities and of indicators for and urgent action envisaged by the Action identifying the degree of sustainability of Plan. The Action Plan recognises that the activities are the most important and shift of capital flows towards more urgent action envisaged by the Action Plan. sustainable activities has to be underpinned The Action Plan recognises that the shift of by a shared understanding of what capital flows towards more sustainable 'sustainable' means. As a first step, clear activities has to be underpinned by a guidance on activities qualifying as shared, holistic understanding of the contributing to environmental objectives, impact of economic activities and should help inform investors about the investments in terms of sustainability. As investments that fund environmentally a first step, clear guidance on activities sustainable economic activities. Further qualifying as contributing to environmental guidance on the activities contributing to objectives, should help inform investors other sustainability objectives, including about the investments that fund social objectives, may be developed at a environmentally sustainable economic later stage. activities. In parallel, further guidance on the activities contributing to social objectives, are developed, recognising that the UN Sustainable Development Goals (SDG) cover all three pillars of sustainability: environmental, social and economic/governance. This also reflects the European Council conclusions of 20 June 2017 that confirmed the commitment of the Union and the Member States to the implementation of the 2030 Agenda in full, coherent, comprehensive, integrated and effective manner. _________________ _________________ 25 COM(2018) 97 final. 25 COM(2018) 97 final. Or. en Justification Achieving the SDGs in the European Union requires the channelling of capital flows towards sustainable investments. offering financial products and services which pursue socially sustainable objectives is an effective way of channelling private investments into sustainable activities. To achieve this aim, the SDGs and the European Pillar of Social rights offer a rich and useful basis for building a social taxonomy that complements a taxonomy built on environmental objectives. The SDGs are built on the premise that the environment, society and economic development are interlinked and must be addressed in an integrated manner.