European Supervisory Authorities Consult on Technical Standards on Sustainability Disclosures04/23/2020The European Supervisory Authorities have launched a joint consultation on proposed Regulatory Technical Standards on content, methodologies and presentation of disclosures under the EU Regulation on sustainability‐related disclosures in the financial services sector, known as the Sustainable Finance Disclosure Regulation. Responses to the consultation can be submitted until September 1, 2020.
The SFDR sets out rules for financial market participants and financial advisers on the transparency of sustainability risks, the consideration of adverse sustainability impacts in their processes and the disclosure of sustainability‐related information for financial products. The ESAs' consultation seeks feedback on proposed RTS on environmental, social and governance disclosure standards for financial market participants, advisers and products. The proposed RTS cover numerous disclosure obligations, including statements on an entity's website of the due diligence policy for adverse impact of investment decisions on sustainability factors for climate and other environment-related impacts, pre-contractual information on how a product with environmental or social characteristics meets those characteristics and if an index has been designated as a reference benchmark, whether and how that index is consistent with those characteristics, information on an entity's website to describe the environmental or social characteristics of financial products or the sustainable investment, and the methodologies used.
View the consultation paper.
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