The European Commission has launched a consultation on how best to encourage sustainable investments.
It is seeking views on how asset managers and institutional investors could include environmental, social and governance factors when making decisions on investments.
The Commission says that would help them allocate capital more efficiently by taking into account sustainability risks, rather than merely seeking to maximise short term financial returns.
The consultation, which is open until 28th January 2018, is part of the Commission’s efforts to mobilise private capital towards green and sustainable investments to enable the transition to a low carbon economy.
It aims to adopt an Action Plan on sustainable finance in the first quarter of next year.