Date: 12th October 2020

BETTER FINANCE warmly welcomes the European Commission initiative to improve the EU regulatory framework on company law and corporate governance. We consider that it has become imperative to reinforce the link between long-term value creation and sustainability. Notably, sustainable investments that contributes to environmental, social and governance (ESG) objectives require long-term orientation. Nonetheless, sustainability is facing several issues related to market pressure and corporate culture that tends to focus on short-term performance at the expenses of long-term objectives.