Changes to the SFDR RTS proposed by ESA Final Report
Published 22 January 2024
Category: Impact and ESG
The European Supervisory Authorities (EBA, EIOPA and ESMA) (together ESAs), published a Final Report with proposed amendments to the SFDR Delegated Regulation (Regulation (EU) 2022/1288) and the SFDR Regulatory Technical Standards (RTS) in December 2023.
The Final Report, which is based on a consultation earlier in 2023 (see our previous Pulse update), includes draft SFDR RTS covering amendment proposals on the following areas:
- Extended list of social PAI indicators.
- Other changes to the PAI disclosure framework.
- New disclosure on decarbonisation targets.
Further, the ESAs have put forward the following proposals and technical amendments not explicitly included in the mandate from the EU Commission:
- Simplifications and improvements of disclosure templates, including a dashboard in the templates summarizing central information.
- Improvements of disclosures on the “Do no significant harm” (DNSH)-principle in relation to sustainable investments.
- Adjustment of regulation on financial products with investment options, e.g. multi-option products.
- Other technical adjustments.
Next steps: The EU Commission is currently reviewing the Final Report and the proposed adjustments. It will decide within three months from the 4 December 2023 whether the changes will be taken into account. At the moment, however, no further information has been given on a more specific timeline for a potential adoption of the draft amendments to the RTS.
Tags: Disclosure RequirementsESMARegulatory Technical StandardsSustainability
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