The European Commission will pursue new rules around climate pledges and collaborative engagement under its new Sustainable Finance Strategy, launched yesterday.
Stewardship and engagement
The Commission will ask European supervisors and national regulators to develop guidance to ensure that current rules preventing investors from ‘acting in concert’ do not “impede collaborative engagement by investors around common sustainability goals”.
Such rules, which ban coordinated efforts by shareholders to pursue a common policy or strategy, are perceived as a barrier to some types of collaborative engagement with companies.
In 2019, the European Securities and Markets Authority reiterated the need for clarity on the rules, which are currently laid out in the EU’s Takeover Bids Directive.
“It’s good to see the Commission responding to ESMA’s suggestion for clarification to be given that collective investor stewardship activities focussed on sus…