In May 2016, E3G in collaboration with a group of NGOs, sent an open letter and a briefing paper to the European Securities and Markets Authority (ESMA) detailing six actions ESMA should undertake to facilitate the integration and management of climate and sustainability risks in financial markets.
The briefing was submitted to ESMA as part of a broader consultation on the operations of the European Supervisory Authorities (ESAs), of which ESMA is one. Many stakeholders in the sustainable finance debate, including the High-Level Expert Group on Sustainable Finance, have argued the ESAs should play a key role in embedding sustainability risk and analysis in the EU financial system. This role is already closely linked to the ESAs existing mandates.
In their response to the letter, published here in full, ESMA states they are constrained by their mandate and resources and are thus unable to assume a larger role in sustainable finance than they currently have. Their response clearly demonstrates further work needs to be done to make the case for greater supervision on sustainability issues.