Industrial Technical Engineer with specialization in Mechanics. He is currently Technical Manager in the Energy Efficiency and Sustainability unit of Euro-Funding, in which he carries out, among other services, the management of public aid for energy saving and efficiency, aid for environmental actions, waste reduction and circular economy, technical consultancy services (Product Carbon Footprint, Environmental Product Declaration, Ecodesign, Ecolabelling, Water Footprint).
Already immersed in the early stages of the 21st century, participants in any sphere of society (including agents directly involved), may find themselves in their day-to-day lives with the doubt: “hey, what does that mean, Sustainable Finance?”
Well, in short, it is the tool to align the economy with environmental and social responsibility. In short, it is to unite money and commitment to good practices, as a catalyst to achieve the goals set by this society of the 21st century.
More and more investors are trying to combine their profitability objectives with the desire to use their money to improve the environment and society. The aim of this sustainable finance is to promote economic models in companies that favor respect for the environment, human rights, social justice and good corporate governance. There are several examples such as investment funds that apply ESG criteria, solidarity investment funds, green and social bonds, etc.
As commented by Climate Policy Initiative (CPI) in its latest ‘Global Landscape of Climate Finance 2021’, annual flows increased to $632 billion (about €543.98 billion), on average, in the period 2019-2020, which means an increase of $85 billion (more than 15%) (€73.169 billion) compared to the period 2017-2018.
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However, while sustainable finance has reached record levels, action still falls short of what is needed. Estimates of the investment required to meet climate targets of no more than a 1.5°C increase in global warming indicate that by 2030 annual climate finance must increase by at least 454%, to an average of USD 4.13 trillion (less than EUR 4 billion).
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Sticking to the European level, we find the European Union (EU) Action Plan on Sustainable Finance and its three reference acronyms (SFDR, NFRD and EU Taxonomy).
First, the scope of the Taxonomy is defined through NFRD and SFDR. In other words, if an organization is affected by NFRD and/or SFDR, the Taxonomy will also be relevant to its disclosure practices. It is important to note here that the EU Taxonomy defines other mandatory disclosures in addition to what is established by NFRD and SFDR.
Second, the taxonomy asks companies (including asset managers) to report the percentage of their turnover and capital as well as operating expenses that are aligned with the taxonomy. It also asks asset managers to report the percentage of their portfolio that is invested in economic activities that are aligned with the Taxonomy.
What there is no doubt about is that we will witness a lot of technical specification of the three regulations over the next few years.
At Euro-Funding we accompany our clients in the process of implementing energy efficiency measures and the development of actions that reduce environmental impact through the development of specialized consulting services, adapted to the needs and legal obligations.
Successful completion of one of our projects in Guatemala Laura Núñez Muñoz More than 20 years of general experience and, for the last 15 years,
PERTE for industrial decarbonisation approved PERTE for industrial decarbonisation approved The PERTE is approved with the aim of accompanying industry in its decarbonisation process to
Keys to efficient driving Enrique Roca Industrial Technical Engineer with specialization in Mechanics. He is currently Technical Manager in the Energy Efficiency and Sustainability unit