European Commission 8 March 2018, COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Action Plan: Financing Sustainable Growth

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This Commission Action Plan establishes a strategic framework to reorient capital flows toward sustainable investments, manage financial risks arising from climate change and social issues, and foster transparency and long-termism. Key initiatives include the development of a unified EU classification system (taxonomy) for sustainable activities, the creation of standards and labels for green financial products, and the clarification of fiduciary duties for institutional investors and asset managers. The plan further mandates the integration of environmental, social, and governance (ESG) factors into financial advice, credit ratings, and prudential requirements for banks and insurance companies.AI