Consulation on Institutional investors´Duties Regaring Sustainability - Dialogue with Companies Necessary

In a letter addressed to Ugo Bassi, Director “Financial Markets” within DG FISMA of the European Commission, Deutsches Aktieninstitut advocated the need for market-based solutions as regards the recent consultation on institutional investors’ and asset managers’ duties on sustainability. Detailed legal requirements will run counter the materiality-principle, thereby turning sustainability-reporting into a box-ticking-exercise. A dialogue with companies is crucial, as enterprises are bound to meet the needs of institutional investors.