The European Commission is introducing new rules to label green funds (similar to those rating the energy efficiency of appliances) and mandate that investment managers consider environmental risks as part of their fiduciary duty.
Valdis Dombrovskis, the EC vice-president who oversees financial services and former prime minister of Latvia, warned last month that “time was running out” to respond to the threat of climate change. “The Titanic could not turn to avoid the iceberg at the last minute. We will soon be in a very similar situation,” said Mr Dombrovskis. The EC also plans to establish a sector classification system to determine which economic activities are good for the environment.