TRANSFORMATION OF THE EU FINANCIAL MARKET TO THE REQUIREMENTS OF THE SUSTAINABLE DEVELOPMENT OF GLOBAL VALUE CHAINS

Анотація

The article summarises transformations taking place in the EU financial market under the influence of growing requirements for responsible business behaviour in global value chains. The paper outlines the components of the European Green Deal and the interaction between climate protection and green finance in the EU. Based on an analysis of the evolution and interrelationship between EU climate protection initiatives and the main elements of the European Sustainable Finance Strategy that contribute to achieving the necessary green transition, the authors conclude that the development of standards for ‘green’ financial products can contribute to the further development of finance focused on ESG market segments, helping investors identify products that, for example, meet low-carbon criteria. The paper notes that around 70% of international trade is linked to GVCs, through which services, raw materials, parts, and components often cross borders multiple times before entering the final product and being shipped to consumers around the world. Therefore, the existence of environmental and social risks in GVCs, such as greenhouse gas emissions, hazardous waste, poor working conditions, and child labour, raises concerns about how GVCs may contribute to the amplification of these risks. These issues have become important factors leading to increasing calls and initiatives to integrate responsible business conduct (RBC) into business practices and create more inclusive and sustainable global markets. The paper concludes that the EU Sustainable Finance Strategy has significantly improved the regulatory framework for ESG financial products by introducing a precise taxonomy, increasing transparency for corporate and financial institutions, and amending financial market rules. The authors emphasize the need for rebalancing the relative importance of financial and non- financial goals in the ESG strategy of global value chains, which, along with other goals, have a clear focus on environmental goals.

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