EU’s ESG Framework May Be Hampering Its Climate Goals

The European Union’s ambitious ESG framework may be getting in the way of the bloc’s ability to reach net zero, according to the expert group advising the region’s leaders.

Companies are getting tripped up by conflicting requirements, while a lack of consistent verification of environmental, social and governance commitments is holding back investors, the Platform on Sustainable Finance said on Monday.

The advisory body, whose members include Allianz SE, Axa SA and the European Banking Federation, reviewed the EU’s sustainable finance framework and its list, or taxonomy, of sustainable activities to see how they’re being employed by the financial and ...