The asset management industry recognises the much-needed adoption of mandatory European sustainability reporting standards under the Corporate Sustainability Reporting Directive (CSRD) proposal. Insufficient availability of meaningful, comparable, reliable, and public Environmental, Social and Governance (ESG) data is a key impediment to realising the full potential of the EU's sustainable finance regulatory framework. Financial market participants' sustainable investments need to be driven by real, verifiable and reported ESG metrics of company's activities and financial risks. We, therefore, encourage the co-legislators to maintain the ambition of this proposal. From the perspective of information users, the CSRD is a crucial piece of the puzzle which allow us to meet more accurately our disclosure obligations under Sustainable Financial Disclosures Regulation (SFDR) and the Taxonomy.

However, as information preparers under SFDR, we call on the co-legislators to avoid unnecessary duplication of reporting layers with the application of CSRD. In this position paper, we outline the rationale for excluding financial products under the scope of CSRD and for enabling a waiver/cross-reference of asset managers' SFDR disclosures under their entity-level CSRD disclosures.

Download our complete position above.