BETTER FINANCE Reply to the European Commission's Consultation on the renewed Sustainable Finance Strategy

BETTER FINANCE believes that the main challenges and opportunities for next 10 years will be:

• Reorienting the equity and bond funding towards sustainable investments.
• The identification of sustainable investments must be based on facts and science, not on emotions and ideologies, and on the probability to have a positive impact on the environment, society and corporate governance.
• Addressing short-termism and barriers to shareholder engagement in corporate and investor governance:
  - professional equity investment intermediaries (asset managers, pension funds, life insurers) must engage with investee companies for long term sustainability,
  - and barriers to the engagement of individual equity investors (who are mostly long term oriented) must be lifted.
• Addressing the issues related to investment advice, in particular regarding ESG matters: it should be unbiased, competent and intelligible.

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