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In a paper prepared for an informal meeting of EU member state economic and finance ministers, the think tank warned that the “unsustainable” use of the environment represented an economic imbalance that could lead to financial crisis.
A Commission briefing note for the meeting discussed the financial-stability risks linked to the ongoing efforts to limit global warming and how the financial policy framework could contribute to an orderly transition.
Bruegel, for its part, identified various policy solutions to the financial risks posed by climate change, including that the European Commission “could provide greater stability through an EU-wide definition of fiduciary duty” and “join investors in their call for the Organisation for Economic Cooperation and Development to consider a convention on fiduciary duty and long-term investing”. As acknowledged by the think tank, these positions are shared by others, with Aviva cited as an example.
Indeed, the call for an EU-wide definition of fiduciary duty and the involvement of the OECD is one of five key recommendations Aviva Investors set out in its response to a European Commission consultation on sustainable and long-term investments.
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