Since EU Commission president Ursula von der Leyen unveiled her picks for the next commissioners, all eyes are on the commissioner-candidate for financial services and the savings and investments union, Maria Luís Albuquerque.
Europe is grappling with a climate and social crisis. From deadly wildfires, extreme floods and unprecedented heatwaves disrupting businesses and ecosystems to increasing cost-of-living pressures and social inequalities, Albuquerque steps into a role laden with responsibility and opportunity. Her actions will shape the future of EU financial regulation and, by extension, the continent's trajectory towards sustainability and prosperity
While Albuquerque's track record in finance is undeniable – having served as Portugal's finance minister and worked for Morgan Stanley – the parliamentary vetting will reveal if she has the sustainability expertise needed to address these challenges.
Von der Leyen has set sustainable finance as a top priority. ShareAction believes these are the key areas where the new commissioner must take decisive action:
Raising temperatures and food insecurity are not future threats, they're happening now. Millions of Europeans struggle with affordable energy and housing. These crises must be central to the new Commissioner's agenda.
Albuquerque must champion the European Green Deal, building on the progress made and strengthening the financial sector's crucial role in addressing these challenges. Environmental and social considerations must guide every financial policy decision, and not be sidelined by industrial and competitive interests. This is the only way to accelerate the transition to a sustainable economy, while improving its long-term resilience and prosperity.
Making sustainability rules clearer and easier to follow is important for achieving real-world outcomes. But the desire to make legislation simpler must not become an excuse to lower the EU’s ambition and backtrack on essential sustainability standards.
As new commissioner responsible for financial services and in cooperation with the new commissioner for implementation and simplification, Albuquerque must ensure simplification enhances the effectiveness of the sustainable finance framework and does not result in dangerous deregulation that sacrifices the well-being of people and the planet, in the name of competitiveness.
Sustainability measures should not be viewed as "burdensome", but as necessary for fostering transparency, enabling the green transition, and supporting businesses’ competitiveness globally.
Greenwashing is a growing threat to Europe’s sustainability goals. It misleads consumers and investors and distorts the market by allowing unsustainable practices to masquerade as green initiatives. Albuquerque must take a firm stance against it. Investors and companies need to be held accountable for misleading claims about their environmental and social credentials and impacts.
This means tightening the rules. The upcoming review of the Sustainable Finance Disclosure Regulation is an opportunity to close loopholes and push for stricter criteria to distinguish sustainable from unsustainable investments. By doing so, financial regulation will enable greater investment into activities that positively contribute to Europe's goals and push companies to change their attitude towards sustainability and go beyond mere compliance.
Climate change is an existential risk to economic stability. From rising sea levels threatening coastal cities to droughts impacting food supply chains, the impacts of climate change could send shockwaves through the European and global economy. Yet, the financial sector continues to pour billions into fossil fuels and other high-risk activities that undermine both environmental and financial stability.
The new commissioner must make it clear that sustainable finance is a foundation for long-term financial stability. This means integrating environmental and social criteria into all aspects of financial regulation, including supervision. It’s about ensuring that those who invest in unsustainable activities are held accountable for the risks they are taking, not just to their balance sheets, but to society at large.
The commissioner for financial services cannot operate in isolation.
To make real progress, she must work closely with their counterparts, particularly the commissioner for democracy, justice and the rule of law and the one for economy and productivity, implementation and simplification.
Together, they need to address gaps in current legislation, like the Corporate Sustainability Due Diligence Directive, to ensure that financial institutions are fully integrated into Europe’s sustainability framework.
Their collaboration should also strengthen investor engagement, improve shareholder rights, and enhance transparency in financial markets. Finally, they should work closely to make the sustainable finance framework easier to navigate and implement, while protecting its spirit and ambition.
By taking these actions, Albuquerque can play a transformative role in guiding Europe towards a truly sustainable and fair economy. ShareAction calls on the new commissioner to show strong commitment and innovative leadership in tackling these urgent challenges. The stakes are high, and the path forward demands decisive and forward-thinking action.
Maria van der Heide is the head of EU policy at ShareAction.
Maria van der Heide is the head of EU policy at ShareAction.