By Luigi Serenelli2021-02-18T16:00:00+00:00
German investors believe the EU Sustainable Finance Disclosures Regulation (SFDR), paired with further disclosure obligations, will improve transparency of companies’ climate impact activities.
The detailed legal requirements of the SFDR, along with the EU taxonomy, “will certainly lead to improved transparency [on the climate impact] of companies’ activities”, Bastian Grudde, ESG analyst at Union Investment, told IPE.
But only the fulfilment of technical regulatory standards will tell in detail the measure of the progress on the matter, he added.
Earlier this month the European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA – published draft regulatory technical standards on the content, methodologies and presentation of disclosures under the SFDR.
On 4 February 2021,
1 less than six weeks before the 10 March 2021 date on which the main operative provisions of the Sustainable Finance Disclosure Regulation (
SFDR)
ESAs) published their final report on the draft level 2 regulatory technical standards (the
Revised
3 (the
April 2020 RTS) and launched a consultation on their content. The ESAs noted in the Revised RTS that they had received significant feedback from stakeholders on the April 2020 RTS. In this ESG Legal Update we highlight some of the key points of the Revised RTS as well as looking at some of the differences between the April 2020 RTS and the final draft Revised RTS.
1. Introduction
1 (RTS) under the EU Sustainable Finance Disclosure Regulation
2 (SFDR), which set out the detailed disclosure requirements for the principal adverse impacts sustainability statements
3 and the disclosure requirements for Article 8
4 and Article 9
5 funds or portfolios, together with the related mandatory disclosure templates.
The revised RTS take account of the feedback received to the ESAs’ Consultation Paper of 23 April 2020
6 on the first draft of the RTS and also incorporate the mandatory disclosure templates following the feedback received by the ESAs to their online survey and consumer testing exercise.
In this alert, we cover the key changes in the revised RTS and the use of the mandatory disclosure templates as they relate to alternative investment managers and their funds or portfolios. The format of the principal adverse impacts sustainability statements and the four mandatory disclosure templates are annexed to this client alert for easier ref
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Recent regulatory developments of interest to all financial institutions, including the latest UK PRA and FCA COVID-19 updates. See also our sector specific updates in the Related Materials links.
Content
COVID-19: FCA updates webpage on changes to regulatory reporting
COVID-19: FCA consults on extending guidance on cancellations and refunds
FCA Financial Lives 2020 survey and October 2020 COVID-19 panel survey
Pension Schemes Act 2021
BofE and FCA MoU on the supervision of market infrastructure and payment systems
UK Productive Finance Working Group
BofE Governor Mansion House speech
FCA policy development update
The EU Sustainable Finance Disclosure Regulation (2019/2088) (“Disclosure Regulation” or “SFDR”) will come into force on 10 March 2021. As detailed in our update in September last.