Date Published 13/04/2023
Consultation on Amendments to SFDR
The three European Supervisory Authorities in the financial services sector, the EBA, EIOPA and ESMA (together the “ESAs”) have on 12th April 2023 released a consultation on potential amendments to Regulation (EU) 2019/2088, the Sustainable Finance Disclosures Regulation (”SFDR”).
The ESAs are inviting comments on this consultation paper which also sets out the proposed draft revised Regulatory Technical Standards on content and presentation of disclosures pursuant to Article 2a(3), 4(6), 4(7), 8(3), 8(4), 9(5), 9(6), 10(2), 11(4) and 11(5) of the SFDR. The consultation package includes a template for comments.
The European Commission had announced in its document entitled the ‘Strategy for Financing the Transition to a Sustainable Economy’ that there should be a review of the previously published RTS to cater for the increased request for transparency in areas that extend beyond the environment in particular. Accordingly this includes a review of the SFDR RTS aimed at broadening the disclosure framework and addressing the main technical issues that have emerged since the SFDR was originally agreed. These include a focus on sustainability indicators in relation to adverse impacts and a review of the information provided in relation to financial products in pre-contractual documents, on websites, and in periodic reports on GHG emissions reduction targets, including intermediary targets and milestones, as well as related actions pursued.
Comments may be submitted until 4th July 2023.
It is likely that revised RTS will be released after this consultation period is over and firm’s will need to update their documentation accordingly.