Sustainability

The finance sector is the catalyst for sustainable development in Europe

Holistic approach to sustainability

The Nordic countries are at the forefront of sustainable development, and the Nordic model’s grounding values of democracy and dialogue are important steppingstones in this process.

While most EU efforts have focused mainly on environmental concerns, NFU advocates for a holistic approach to sustainability by considering environmental, social, and governance aspects.

Environmental

Considers the impact and contribution that a business can have on nature

Social

Assesses how a business impact people, culture and communities

Governance

Examines how the business looks at corporate governance factors

Sustainable Finance

Sustainable Finance is an orientation to use the ESG approach in making people- and community-centred decisions and tailoring all societal aspects to meet citizens' present and future needs in a flexible, inclusive, and self-sufficient way. NFU advocates that a green restructuring of the economy must go hand in hand with a socially just transition.

Employee perspective

The finance sector is the catalyst for the green transition in Europe. Employees are the prime value creators and key drivers towards financial sectors that create the preconditions for sustainable development. This makes NFU and its member unions important contenders in this policy area.

NFU's priorities

NFU´s efforts are directed towards the needs of finance sector employees and trade unions, their role as accelerators of the sustainable finance agenda, and their visions concerning key EU policy and regulatory developments. NFU favours regulation on the EU level, which involves proper stakeholder consultations and advocacy opportunities.

EU Legislation

Policy priorities and legislative files

This directive is the cornerstone of the EU economy's sustainability transformation following the EU Green Deal. It provides legal certainty for companies with international supply chains and strengthens human rights and decent working conditions (e.g., prevention of child and forced labour).

The aim of the EU Green Deal is to achieve a climate-neutral economy by 2050. This requires, among other things, the implementation of a corporate climate strategy in line with the Paris Agreement and corresponding incentive systems at the company management level.

Since 2022, the EU has entered a new cycle of sustainability reporting rules. European companies have started the adaptation process to comply with the Corporate Sustainability Reporting Directive (CSRD). At the same time, the European Commission has approved the first set of level 2 measures which consist of the vital European Sustainability Reporting Standards (ESRS). These reporting rules also include the value chain and informative value of future sustainability reporting. The overarching objectives of climate neutrality and strengthening human rights in the EU are strengthened through the interaction of CSRD and CSDDD.

The Green Bonds Regulation establishes uniform standards for issuers using the designation 'European green bond' (EuGB) to market their bonds. It uses the EU taxonomy to determine whether the activities funded by bond proceeds are environmentally sustainable. The Regulation also includes voluntary disclosure templates for other green and sustainability-linked bonds. These standards aim to help investors confidently fund sustainable technologies and businesses while providing issuers with certainty that their bonds meet investor demand for green investments. This Regulation is expected to boost interest in green bonds and support the EU's transition to climate neutrality.

The Solvency II framework was updated to be more adaptable and forward-looking, freeing up capital for insurance firms to invest in economic recovery and the European Green Deal. It simplifies supervision while strengthening oversight of systemic risks and mandates better cooperation among supervisors across Member States. Insurers must also account for and report sustainability-related risks, enhancing transparency for policyholders. A new recovery and resolution framework was introduced to handle failing insurers, ensuring recovery or orderly wind-downs without taxpayer costs. This framework harmonises tools and procedures, emphasising cross-border cooperation and a 'pre-emptive' approach for certain insurers.

The Taxonomy Regulation establishes six environmental objectives: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. Economic activities can be labelled as environmentally sustainable if they contribute to at least one objective without significantly harming others. The Regulation also mandates that financial and non-financial companies annually disclose the percentage of their activities that are taxonomy-eligible and taxonomy-aligned.