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.
EFAMA on EC Proposal on low-carbon benchmarks and positive carbon impact benchmarks
EFAMA comments European Commission's Proposal on disclosures relating to sustainable investments
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.
EFAMA response to EC CfE ESG ratings and sustainability risks in credit ratings
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.
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.
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 ”.
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.
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.
