The final report of the high level expert group on sustainable finance


The European Commission has just published the final report and recommendations of the High-Level Expert Group on Sustainable Finance (HLEG).

An EU sustainability taxonomy, a definition of priority investment areas, the clarification of investor duties and development of “official” European sustainability standards for green bonds are some of the recommendations experts made to the European Commission.


The report calls for 1- clarifying the duties of institutional investors as well as their asset managers and 2- strengthening director duties related to sustainability.

Two important related recommendations:

  • In the board nomination process, competence in relevant sustainability matters is systematically considered.

  • The ‘fit and proper’ tests to include an assessment of the individual and collective ability of the members of governing bodies in financial institutions to address sustainability risks, to understand the broader stakeholder context and to take account of clients’ sustainability preferences.