The European Commission’s Sustainable Action Plan has three objectives:
(1) To reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth;
(2) To manage financial risks stemming from climate change, environmental degradation, and social issues; and
(3) To foster transparency and long-termism in financial and economic activity.

 It is a response to recommendations from the high-level expert group on sustainable finance, which were submitted to the Commission in January 2018. Already, the European Parliament has adopted an amendment to Regulation 2016/1011 to introduce a framework for EU climate transition and EU Paris-aligned benchmarks, an amendment to the Delegated Regulation 2017/565 to integrate environmental, social, and governance (ESG) considerations into investment advice and portfolio management, and an amendment to Delegated Regulation (EU) 2017/2359 to integrate ESG considerations and preferences into the investment advice for insurance-based investment products. It has also prepared a series of related reports, including an EU Taxonomy Regulation, benchmarks, EU green bond standard, and climate-related disclosures.