The three European Supervisory Authorities (ESAs) have published a joint consultation paper setting out proposed amendments to the disclosure framework introduced through the Sustainable Finance Disclosure Regulation (SFDR). Following a mandate received from the European Commission in April 2022 to review and revise SFDR’s regulatory technical standards (RTSs), one of the ESAs’ recommendations is to extend the principal adverse impacts’ (PAIs) existing list of universal social indicators to include disclosures such as interference in the formation of trade unions. The ESAs have also proposed the refinement of existing indicators, applicable methodologies, and formulae for calculation, as well as product disclosures regarding decarbonisation targets. The paper outlines technical revisions to the SFDR Delegated Regulation, such as improvements for disclosures on how sustainable investments ‘do not significantly harm’ the environment and society. The consultation is open to feedback until 4 July, with the regulators planning to submit their final report to the Commission by end of October.
🛠️ address issues that have emerged since the introduction of the Sustainable Finance Disclosure Reg. #SFDR
— ESMA – EU Securities Markets Regulator 🇪🇺 (@ESMAComms) April 12, 2023