SFDR FINAL REPORT ON DRAFT RTS
On 4 February 2021, the European Supervisory Authorities (ESAs) published their long awaited final report on draft regulatory technical standards (hereinafter, the “Draft RTS”) with regard to the content, methodologies and presentation of sustainability-related disclosures under Regulation (EU) 2019/2088 (hereinafter Sustainable Finance Disclosure Regulation “SFDR”).
Such Draft RTS aim to strengthen protection for end-investors by improving disclosures to end-investors on the principal adverse impacts of investment decisions and on the sustainability features of a wide range of financial products. This will guide financial market participants and financial advisers in responding to the increasing investor demand for sustainable products and to reduce the risk of greenwashing. For more details on the SFDR final report, please refer to BSP Sustainable Finance Newsflash Series number 10.
JOINT ESA SUPERVISORY STATEMENT ON THE APPLICATION OF THE SFDR
On 25 February 2021, the three European Supervisory Authorities (EBA, EIOPA and ESMA - the “ESAs”) have published a joint supervisory statement on the effective and consistent application and national supervision of Regulation 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR).
The overall objective of this statement is to achieve an effective and consistent application and national supervision of the SFDR, promoting a level playing field and the protection of investors. For more details on ESA supervisory statement on the application of the SFDR please refer to BSP Sustainable Finance Newsflash Series number 11.
ESMA PROPOSES RULES FOR TAXONOMY-ALIGNMENT OF NON-FINANCIAL UNDERTAKINGS AND ASSET MANAGERS
On 1 March 2021, ESMA published its final report on advice under aticle 8 of the taxonomy regulation (please refer to BSP Sustainable Newsflash Series number 7), which covers the information to be provided by non-financial undertakings and asset managers to comply with their disclosure obligations under the Non-Financial Reporting Directive (NFRD).
ESMA’s advice sets out in concrete terms how to comply with the disclosure obligations under the taxonomy framework, balancing investors’ demand for high quality information and avoiding undue burdens on market participants. For more details on ESMA’s proposed rules for taxonomy-alignement of non-financial undertakings and asset managers please refer to BSP Sustainable Finance Newsflash Series number 12.