Retail investors own 35 trillion euros according to Eurostat - while we need 0.6 trillion euros of additional annual investments in the EU to reach our 2030 sustainability objectives. Given that a substantial majority of retail investors (60% to 80%, according to various studies - Natixis 2016, Schroeders 2017, University of Cambridge 2019, 2° Investing Initiative 2020, Maastricht University 2021) want to invest sustainably, it is essential to address barriers in the EU’s regulatory framework and rectify current market failures. By aligning the Retail Investment Strategy (RIS) with the growing demand for sustainable investments, considerable resources can be mobilised to achieve the EU's 2030 sustainability targets.

The RIS, aimed at protecting consumers, offers a unique opportunity to promote sustainable investments by ensuring access to reliable information and advice. Additionally, revising the Sustainable Finance Disclosure Regulation (SFDR) is critical for ensuring consistency with other EU legislation and providing clear categorization of sustainable funds. The Shareholder Rights Directive will also need to be reviewed to bolster retail investors’ rights and opportunities to take concrete action.

WWF believes that these developments will allow retail investors to understand the sustainability impact (positive or negative) of their investment, and will help channel substantial amounts to sustainable projects away from harmful sectors.