Policy Hub
Our resources provide practical recommendations and guidance on key responsible investment themes.
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Consultation Responses09 May 2024
ShareAction response to Transition Finance Market call for Review
Our response focuses on Chapters 2 and 3 of the TFMR Call for Evidence. We consider that there is a lack of clarity around the scope of transition finance which would hinder the credibility and integrity of the transition finance market. More importantly this could lead to funds for transition finance being used for activities other than transition, or which prolong the transition further, and could also jeopardise the prospects of an effective and just transition.
Consultation Responses01 May 2024
ShareAction submission to FRC on the Stewardship Code Review
We remain concerned about weakening regulatory and policy maker expectations around stewardship, at a time of diminishing standards in practice, both in the UK and internationally. In this response to the Stewardship Code review by the FRC, we state our desire to see an ambitious Stewardship Code, driving effective corporate engagement.
Joint Statement11 April 2024
Joint statement calling EU policymakers to require insurers to properly account for the risks of harmful activities
Together with other 7 NGOs, we are calling for urgent action ahead of the EU elections in June to prioritize sustainability in EU insurance regulations. The current legislative framework falls short of making insurers properly account for risks from harmful activities, impacting the environment and financial stability. We urge the European Insurance and Occupational Pensions Authority (EIOPA) to enhance its work on sustainability and for the next European Commission to act on policy recommendations, ensuring a more resilient and trusted insurance sector for a sustainable future.
Briefing28 March 2024
Summary of ShareAction’s response to the 2023 European Commission SFDR public consultation
This policy brief summarises ShareAction’s response to the 2023 European Commission Sustainable Finance Disclosure Regulation (SFDR) public consultation. The SFDR is a key regulation for mobilising sustainable finance, aiming to enhance transparency and accountability in investment practices. However, as the industry grapples with greenwashing and misapplication, this policy brief outlines key recommendations to strengthen SFDR's effectiveness.
Report26 March 2024
ShareAction, E3G and WWF joint report "Investing in Europe's Prosperity: a vision for financing the transition to sustainability 2024-2030"
The joint report outlines the key role played by financial regulation to mobilise private and public finance for the transition towards a more sustainable economy, and puts forward specific recommendations for European policymakers ahead of the European elections in June. These recommendations build on the content of the ERIN Manifesto launched in October 2023 and if implemented would allow for targeted but decisive action in the private and public finance sectors ahead of 2030 to achieve the objectives of the European Green Deal.
Consultation Responses21 March 2024
ShareAction response to the EIOPA consultation on the prudential treatment of sustainability risks
ShareAction welcomes EIOPA's analysis, which concludes that fossil fuel-related assets carry higher risk levels compared to other economic activities. We are also pleased that EIOPA acknowledges and accepts the need for higher capital requirements for such riskier stocks and bonds. This is groundbreaking, and long overdue. However, the policy options formulated by EIOPA to ensure such higher risks are accounted for and safeguard financial stability are suboptimal and unambitious. In our response to the consultation, we have built on the results of EIOPA's analysis to emphasise that 100% capital charge is not only the most adequate option to account for such high (and still likely underestimated) risk levels, but it is also feasible given its limited impact on insurers' balance sheet. Finally, we have urged EIOPA to continue its analysis of underwriting risk and kickstart its parallel work on the possibility to introduce higher capital requirements for assets exposed to social risks (Pillar 1) as soon as possible.
Briefing18 March 2024
From Policy to Preservation: Why the UK Government should introduce mandatory reporting against the TNFD
The Taskforce on Nature-related Financial Disclosures (TNFD) is a disclosure framework designed to help companies and financial institutions to identify their risks, impacts and dependencies on nature. The financial sector has a pivotal role to play in addressing the biodiversity crisis, but many institutions have failed to embed nature within their decision making. This briefing shows the need for increased ambition in enshrining nature protection within UK policy, beginning with sector wide mandatory disclosures against the TNFD, to align with the UK Government’s preexisting commitment to Target 15 of the Global Biodiversity Framework and its ambition to become a global leader on nature conservation.
Briefing29 February 2024
ShareAction UK General Election 2024 Manifesto
The next UK government will be in power at a crucial time. It will have to take urgent action to tackle the climate crisis, nature loss, rising inequality and public health issues. The finance sector holds the key to helping solve these challenges, through the investments it makes and the companies it supports. But current practice is too often focused on profits at the expense of people and the environment. With a general election expected this year, we’ve set out six ways the next UK government can ensure the financial system is a force for good. Our new manifesto sets out how these measures would have a significant positive impact in driving action to cut carbon emissions, protect nature and shape fairer, healthier societies. These interventions build on existing policy initiatives and require little to no public expenditure. We urge the next government to be bold and take the necessary action to address the urgent crises we face.
Consultation Responses23 February 2024
ShareAction Written Evidence to the Work and Pensions Select Committee on Fiduciary Duty
ShareAction has submitted written evidence to the Work and Pensions Select Committee on fiduciary duty, including managing climate change risks. The pensions system should work in the interests of pension savers. This means making a financial return to pay their retirement income but also accounting for how they are impacted by where their money is invested. We consider that a legal change to the definition of fiduciary duty is still needed to remove legal uncertainty, minimise important practical concerns and ensure that trustees take real action to address sustainability risks and opportunities.
Consultation Responses26 January 2024
ShareAction response to the FCA’s Anti-Greenwashing rule and guidance consultation
The FCA’s welcome crackdown on greenwashing through their new rule and guidance will lead to increased confidence in the market and as a result, increased capital flows into genuinely responsible, environmentally and socially conscious investments. However, ShareAction would like to see stronger encouragement from the FCA to asset managers and pension fund trustees towards sustainable investment as well as guidance.
