Changes to the SFDR RTS proposed by ESA Final Report

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