Sustainability-related disclosures (SFDR)
Regulation (EU) 2019/2088 on sustainability-related disclosures (SFDR) is a pillar of the EU sustainable finance agenda. SFDR aims to increase the transparency of financial market participants towards end-investors and contribute to the objective of fighting greenwashing. It lays down sustainability disclosure obligations on the environmental and social impact of an entity’s investment decisions, and requirements on how to present the characteristics of green investment products.
To ensure this new set of rules successfully delivers on its objectives, EFAMA contributes to developing the regulation, as well as assisting members’ implementation efforts. We voice any concerns around the timelines for applying rules, implementation challenges and interpretation issues. Additionally, we provide the industry’s informed views on current risk management frameworks and practices concerning the disclosure of information to end-investors.
ESMA’s call for evidence on the integration of ESG preferences on suitability and product governance arrangements
ESMA Review of SFDR Delegated Regulation regarding PAI and financial product disclosures
EFAMA has responded to the European Supervisory Authorities' (ESAs) joint consultation setting out various regulatory technical standards (RTS) for the Sustainable Finance Disclosure Regulation (SFDR). They propose new sustainability indicators in relation to principle adverse impacts (PAIs) and additional disclosures to the ‘do no significant harm’ principle, as well as some other modifications.
EFAMA response to ESMA Consultation on fund names using ESG terms
EFAMA welcomes ESMA's consultation paper on guidelines on funds’ names using ESG or sustainability-related terms. We support the overarching objective to promote transparency and tackle the risk of greenwashing by ensuring that investors are protected against unsubstantiated or exaggerated sustainability claims.
EC Consultation on EU Taxonomy Delegated Acts
Simplification Omnibus reduces regulatory burden while maintaining important sustainability ambitions like double materiality
Yesterday, the European Commission published its first regulatory simplification Omnibus, which aims to reduce the sustainability reporting burden on EU companies through amendments to the Corporate Sustainability Due Diligence Directive (CSDDD), Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy Regulation. We support this initiative as a positive and necessary step to increase the competitiveness of European companies and reduce regulatory burden, while still maintaining the ambitions of the EU Green Deal.
Positive developments include:
Financial sector calls for a coordinated approach by regulators when changing sustainable finance disclosures
Joint letter asks European Commission to delay technical changes by supervisors until broader review of SFDR is complete
EFAMA Market Insights | Issue# 3 | Sustainable Investment in the European Asset Management Industry
For this Market Insights, EFAMA collaborated with its member associations and strategy consultants at INDEFI to estimate the level and nature of ESG investment by European asset managers at the end of 2019, distinguishing between the ESG strategies applied at the firm level and those applied at the level of individual fund and discretionary mandate. The assets under management covered in the report include EUR 12.5 trillion of investment fund assets and EUR 11.4 trillion of mandate assets.*
3 questions to Thierry Bogaty on the EU Ecolabel for retail financial products
Q #1 Can the EU Ecolabel for retail financial products help channel individual investors’ savings into environmentally sustainable projects?
A well-designed EU Ecolabel has the potential to provide clear guidance on the financial products retail investors can invest in if they wish to support environmentally sustainable projects and activities - in line with the EU Taxonomy Regulation. The European Commission wants to create a trusted and verified label for retail investors, who would benefit from better comparability of financial products.
SFDR implementation & ESG operating model implications for asset managers
