EFAMA welcomes the opportunity to respond to the EC’s targeted consultation on the functioning of the ESG rating market in the EU and on the consideration of ESG factors in credit ratings. Please note that our response covers, at the same time, ESG ratings and ESG data providers, as the demand for ESG “raw” data has been increasing at a steady pace. The use of ESG data has also rapidly shifted from a narrow set of investment products to being prolific across all investment products.
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.
Related policy positions
Policy Position
Distribution ＆ Client Disclosures
Sustainable Finance
EU Taxonomy
Sustainability-related Disclosures (SFDR)
13 June 2022
EFAMA response to EC CfE ESG ratings and sustainability risks in credit ratings
Press Release
Data
Sustainable Finance
EU Taxonomy
Sustainability-related Disclosures (SFDR)
Sustainability reporting (CSRD)
01 December 2021
The European Single Access Point: a powerful tool for investors to assess the ESG performance of companies
EFAMA sees the European Commission’s proposal for the creation of a European Single Access Point (ESAP) as a crucial step in addressing the limited availability and scattered nature of financial and sustainability-related entity information at EU level.
Policy Position
Sustainable Finance
Sustainability-related Disclosures (SFDR)
13 September 2021
IOSCO´s consultation on ESG ratings and data products providers
Given the increasingly important role ESG ratings and data products providers play in investment processes, EFAMA welcomes the increased attention of regulators to this issue. In light of the growing regulatory scrutiny on the ESG characteristics of potential investments, improving the usability and reliability of the ESG ratings and data products is a key priority for the European asset management industry.
Related news
Press Release
Sustainable Finance
Sustainability-related Disclosures (SFDR)
21 February 2023
EFAMA questions the threshold approach in ESMA’s proposed guidelines on the use of ESG terms in fund names
EFAMA has today published its response to the ESMA consultation on guidelines on funds’ names using ESG or sustainability-related terms. EFAMA members have concerns around the proposed numerical threshold approach as it may not address the underlying greenwashing issues our industry is facing due to the current lack of clarity on many key sustainable finance concepts.
Policy Position
Sustainability-related Disclosures (SFDR)
21 February 2023
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.
Press Release
Stewardship
Sustainability-related Disclosures (SFDR)
28 November 2022
Corporate sustainability reporting legislation adopted but still some years of uncertainty ahead for sustainable investing
Following in the footsteps of the European Parliament earlier this month, the Council of the EU has now finalised the legislative process by adopting the Corporate Sustainability Reporting Directive (CSRD), a move which is very much welcomed by EFAMA. This comes days after the first set of European Sustainability Reporting Standards (ESRS), which give life to the double materiality principle established by the CSRD, were finalised by EFRAG and submitted to the European Commission for adoption.
Related publications
Press Release
Sustainability-related Disclosures (SFDR)
30 June 2023
EFAMA’s latest Market Insights shows fluctuations in the SFDR fund market and makes policy recommendations for the future | Issue # 12
EFAMA has released today a new issue of its Market Insights series titled “The SFDR fund market – State of play, latest market developments and outstanding regulatory issues ”.
Publication
Stewardship
Sustainability-related Disclosures (SFDR)
29 November 2022
Infographic | The CSRD Timeline
Key dates for the Corporate Sustainability Reporting Directive
Mandatory European sustainability reporting standards are crucial as insufficient availability of ESG data is a key impediment to realising the full potential of the EU’s sustainable finance regulatory framework. As information preparers under the Sustainable Finance Disclosure Regulation (SFDR), asset managers will undoubtedly benefit greatly from relevant, comparable, reliable and public ESG metrics of companies’ activities and financial risks.
Publication
Sustainable Finance
EU Taxonomy
Sustainability-related Disclosures (SFDR)
17 November 2021
The European ESG market in Q1 2021 – Introducing the SFDR | Market Insights | Issue #7
This report breaks down the size of the European ESG market, reviewing the assets under management of funds using the SFDR (Sustainable Finance Disclosure Regulation) framework.
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