The European Parliament and EU member states have reached a political agreement on new disclosure requirements for sustainable investments and sustainability risks. The Liechtenstein Bankers Association (LBA) has welcomed this development.

The European Parliament and EU member states reached an agreement on March 7, 2019, as to which financial market participants and investment advisors must in future take account of environmental, social, and governance aspects (ESG criteria) and integrate them into the investment and advisory process. The new EU regulation also governs how these intermediaries must inform investors of the fulfilment of their obligation to take account of the ESG criteria.

The new regulation should serve to fulfil the climate goals of the Paris Agreement and the United Nations Sustainable Development Goals (SDGs). According to the European Commission and estimates of consultancy firms, it will not be sufficient for the public sector alone to invest in achieving the climate goals. In order to achieve these targets, private investors will have to contribute a significant portion of the investment.

The Liechtenstein Bankers Association (LBA) has welcomed the news of the EU agreement in a press release. According to the Director of the LBA, Simon Tribelhorn, the new regulation “will provide important guidance for both financial intermediaries and investors and enable both to make better-informed decisions so that more responsible investments can be made and sustainability promoted”.

The regulation is also relevant at the level of the European Economic Area (EEA) and therefore applies to Liechtenstein as well. The regulation will enter into force on the twentieth day following its publication in the Official Journal of the European Union and must be implemented no later than 12 months after publication. Tribelhorn concluded: “The new requirements must not be underestimated either in their scope or in terms of the time schedule – 12 months for implementation is short, illustrating the urgent need for action”.

Sustainability has always been an important concern of the finance sector in Liechtenstein and, in addition to stability and quality, is also one of the three pillars of the Roadmap 2020 future strategy. In this context, the LBA is also committed to sustainability. Last year, the LBA joined the international network of Financial Centres for Sustainability (FC4S), which now comprises 20 international financial centers overall.

Back to overview