Sustainability aspects of the financial sector

This page collates the FIN-FSA’s key releases and texts on the sustainability theme in 2024.

In 2024, sustainability aspects emerged as increasingly important topics in the financial sector on the back of new regulations. A FIN-FSA seminar in June 2024 addressed a wide variety of sustainability-related topics. The seminar emphasised the transition to a more sustainable economy from a climate and environmental perspective, the clarity of sustainability information and the significance of risk management. The seminar offered an important forum for dialogue and the exchange of information, and its conclusions will support the continuous development of the financial sector towards a more sustainable future.

Banks migrating to a more sustainable economy from a climate and environmental perspective

In 2024, the FIN-FSA has delved into banks’ transition risks. Banks are exposed to changes in the economy and the materialisation of climate risks, but transition to a more sustainable economy involves numerous financing opportunities.

The FIN-FSA emphasises that banks must consider sustainability risks as part of their broader risk management process. This means that sustainability aspects must be integrated into banks’ strategy and functions to that banks can manage and mitigate the risks effectively. The role of risk management related to sustainability is particularly highlighted in the current economic environment where the impacts of climate change and environmental degradation may be significant.

Thematic review of investment funds’ sustainability disclosures

In 2024, the FIN-FSA conducted a thematic review of investment funds’ sustainability disclosures and their clarity. According to the first phase of the review, completed in the spring, greenwashing risk is currently considered in a rather limited manner in investment fund activities. Greenwashing risk means, for example, that funds are marketed as sustainable and more environmental than they actually are. The FIN-FSA recommends that fund managers pay particular attention to this risk and ensure that funds’ sustainability claims are justified and truthful.

In the second phase of the thematic review, completed in the autumn, it was stated that funds must enhance their sustainability disclosures so that investors could make data-based decisions. Clear and transparent sustainability disclosures are key in the promotion of sustainable finance, and the FIN-FSA underlines that funds must present sustainability risks and impacts understandably and comprehensively.

Artificial intelligence was used in writing the article. However, the article was finalised and reviewed by FIN-FSA’s specialists.