The Sustainable Banking Coalition welcomes the European Commission’s initiative to improve and streamline sustainability reporting obligations. However, it is essential to consider several key aspects in order to create a more navigable reporting landscape without compromising the high standards that underpin effective sustainable finance practices. The changes need to lead to a strong and effective reporting framework that enables the financial sector and the broader European economy to access essential sustainability data efficiently, supporting well-informed investment and business decisions.
Our members are leaders in sustainable finance and engage in sustainability reporting for three reasons:
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As investors, we rely on reliable, standardised ESG data to make informed and comparable investment decisions.
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As lenders, we use ESG reporting to assess and manage sustainability risks in our lending activities.
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We also use ESG data to track our progress toward sustainability commitments, ensuring accountability and compliance with regulatory requirements.
Striking the right balance is crucial: we need sufficient transparency to direct capital towards sustainable projects while ensuring that reporting requirements remain manageable for companies and financial institutions. In a rapidly evolving global market, the EU must equip its financial sector with the right tools to maintain its competitive advantage in forward-looking financial practices and avoid falling behind. To achieve this, the Coalition believes that following priorities must be addressed:
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A balanced approach to ESG reporting, ensuring financial institutions can access relevant data.
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Enabling risk-based value chain reporting to ensure comprehensive ESG risk visibility across supply chains without overburdening SMEs.
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Maintaining double materiality to support sound investment decisions and financial risk management.
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Ensuring companies have credible climate transition plans.
Please find more information and a detailed assessment in the position paper from May 2025.
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Sustainable Banking Coalition
Rue du Commerce 72 - 1040 Brussels
info@sustainablebankingcoalition.eu
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