Implementation of sustainability frameworks for Belgian National Promotional Banks and Institutions (NPBIs)

The Commission aimed at supporting two Belgium National Promotional Banks and Institutions (NPBIs), Participatiemaatschappij Vlaanderen (PMV) for Flanders and Wallonie Entreprendre (WE) for Wallonia towards compliance with the new EU sustainable finance legal framework, and at helping them enhance long-term sustainable investments in Wallonia and Flanders. 

Context

Sustainable finance refers to the process of taking environmental, social and governance (ESG) criteria into account when making investment decisions in the financial sector, hence strengthening long-term investments in sustainable economic activities and projects. It plays a key role to fulfil the objectives of the European Green Deal (EGD) and the United Nations Sustainable Development Goals (SDGs). 

The green transformation is very costly and even if public funding will not be sufficient to foot the bill, NPBIs can play a significant role in this respect. Depending on their respective status and size, NPBIs may have to comply with sustainability-related requirements set out in EU legislation, such as the EU Taxonomy Regulation, the Sustainable Finance Disclosure Regulation (SFDR), the Corporate Social Responsibility Directive (CSRD) and the InvestEU Regulation.

Support delivered

Experts first prepared a diagnosis report with an overview of the applicable sustainable finance directives and regulations for PMV and WE, as well as a gap analysis for each of the NPBIs. This was followed by guidelines for the application of EU sustainable finance regulatory requirements, ESG governance, Key Performance Indicators (KPIs) development and reporting. Then, experts carried out pilots on SFDR reporting and InvestEU Regulation implementation, followed by trainings on the integration of EU sustainable finance regulatory requirements, ESG governance and ESG KPIs. The project was completed by an action plan and a roadmap towards a sustainable investment strategy for WE.

Expected results

This project will result in an enhanced sustainability framework in both PMV and WE and contribute to the financing of sustainable investments in both Flanders and Wallonia through several funds (Amerigo for Wallonia and EPICO II and the Welvaartsfonds for Flanders), which will ultimately benefit the Belgium economy as a whole.