GSG Impact, Impact Europe and other European finance bodies have urged EU legislators to support the European Commission’s recent proposal to recognise impact investing, in an open letter published this week.

The European Commission called for a ‘recognition’ of impact investing in a proposed revision of its regulation on sustainability-related disclosures for the financial sector, the Sustainable Finance Disclosure Regulation (SFDR), published on 21 November. 

The text, submitted to the European Parliament and Council for examination before it is voted upon, says the term ‘impact’ in the names of financial products should be restricted to those that meet the “specific characteristics of impact investing”, including the “objective of intentionality and targeting measurable change in specific pre-defined environmental or social areas with an upfront theory of change and with reporting on the outcomes”. 

The open letter, signed by 15 leading organisations in the field of impact and sustainable finance, welcomed the proposal. It said: “For the first time, impact investing is acknowledged in EU sustainable finance legislation as a distinct practice within products pursuing sustainability or transition objectives.

Read the full article at Pioneers Post: Impact Europe, GSG Impact and allies urge EU legislators to back Commission’s SFDR recognition of impact investing | The Social Enterprise Magazine - Pioneers Post