European investors have expressed disapproval of the EU
regulators' classification of fossil fuels as
'solid’, which potentially means that the use of
oil and gas will not be included in disclosures.
The move contrasts with the views of the EU’s
technical expert group on sustainable finance (TEG).
"By creating mandatory disclosure of the proportion of the
portfolio invested in solid fossil fuels, then labelling it
wholesale as fossil fuel sectors, there is a risk that
investors will be misled as to where their money is being
invested," said Alyssa Heath, head of EU and UK policy, at the
United Nations-supported Principles for Responsible Investment
(PRI). "Many investors will likely assume that the term 'fossil
fuel sectors’ refers to the common understanding
and wider definition of fossil fuels and not the inaccurate and
narrow regulatory definition proposed."
Wolfgang Kuhn, director of financial sector strategies at
ShareAction agreed. "We’re still in...