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
EU Taxonomy
Sustainability-related Disclosures (SFDR)
18 May 2021
EFAMA calls for consistency of taxonomy KPI metrics in EU sustainable finance regime
EFAMA has published its response to the joint European Supervisory Authorities (ESAs) consultation on taxonomy-related sustainability disclosures in the Sustainable Finance Disclosure Regulation (SFDR).
Press Release
Data
Sustainable Finance
EU Taxonomy
Sustainability-related Disclosures (SFDR)
Sustainability reporting (CSRD)
16 March 2021
European single access point for data? EFAMA’s 6 key recommendations
The European Fund and Asset Management Association (EFAMA) has published its response to the European Commission's consultation on the establishment of a European Single Access Point (ESAP) for financial and non-financial information publicly disclosed by companies.
Press Release
Stewardship
Sustainable Finance
Ecolabel
EU Taxonomy
Sustainability-related Disclosures (SFDR)
Sustainability reporting (CSRD)
11 March 2021
ESG investing in the UCITS market: a powerful and inexorable trend
The European Fund and Asset Management Association (EFAMA) has published its latest Market Insights report titled “ESG Investing in the UCITS Market – A powerful and inexorable trend”. The report looks at the major trends in the ESG UCITS market, the impact of the coronavirus pandemic, and the behaviour of ESG and non-ESG funds.
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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