The FMA’s Sustainable Finance Strategy

In May 2025, the FMA published a detailed strategy paper on Sustainable Finance for the first time. It describes core principles and areas of activity that the FMA uses to react to sustainability-related challenges in the financial sector and to strengthen the resilience of the financial market.

Sustainability risks as a focus for supervision

The FMA recognises the increasing risks arising from climate change, biodiversity loss as well as social and governance factors (ESG), and places particular value of their being appropriately integrated into supervised entities’ risk management.

Such risks are considered to be of material relevance – irrespective of the political and society-led debates – since they directly affect the stability of the financial market.

At the same time, the FMA observes the principle of proportionality, by tailoring supervisory measures to entities’ size, complexity and risk profile. This notwithstanding, it remains essential to address climate-related risks.

Cooperation, dialogue and building up of knowledge

The FMA actively promotes building up of knowledge and capacity at supervised entities. In a partnership-based approach it prioritises dialogue, advice and a collective learning process.

The FMA has a wide range of formats and instruments at its disposal such as the:

• FMA Guide for Managing Sustainability Risks (publication currently only in German),
• events, studies and information documents,
• as well as digital content and communications over social media.

The objective is to promote better understanding for the opportunities and threats about sustainable finance and to strengthen entity’s ability to implement them.

Transparency and Preventing Greenwashing

The promotion of transparency towards consumers is a material strategic aspect. The FMA reviews compliance with sustainability-related distribution rules, conducts regular analyses and screenings, and addresses greenwashing in this manner.

In addition, it observes market developments on an ongoing basis, and informs entities at an early juncture about regulatory trends and its own analyses.

Engagement for a fit-for-purpose regulatory framework

The FMA understands the challenges market participants face over transition and regulation and therefore promotes open dialogue with stakeholders at national, European and international level. The objective is to ensure a risk-oriented, proportionate and fit-for-purpose regulatory framework, especially in relation to collective consumer protection.

Sustainability at the FMA

Sustainable finance is not just an issue for supervision for the FMA but also forms part of its own organisational development. The authority is building up internal structures, resources and know-how, to reinforce the issue in its work in a sustainable and cross-sectoral manner.

Download

The FMA’s Sustainable Finance Strategy can be read here: FMA Strategy Paper on Sustainable Finance (Format: pdf, Size: 133,9 KB, Language: English)