Legal & Regulatory News
European Supervisory Authorities publish updated supervisory statement on the application of Sustainable Finance Disclosure Regulation
25 March 2022On 25 March 2022, the European Supervisory Authorities (the European Banking Authority, the European Insurance and Occupation Pensions Authority, and the European Securities and Markets Authority) (the ESAs) published an updated supervisory statement (the Supervisory Statement) on the application of the Sustainable Finance Disclosure Regulation ((EU) 2019/2088)(SFDR).
In the Supervisory Statement, the ESAs recommend that national competent authorities and market participants should use the rest of 2022 to prepare for the application of the upcoming Commission Delegated Regulation containing the Regulatory Technical Standards in relation to the SFDR, while also applying the relevant measures of SFDR and the Taxonomy Regulation according to the relevant application dates outlined in the Supervisory Statement.
The Supervisory Statement also provides a clarificatory statement from the ESAs that, under Article 5 and 6 of the Taxonomy Regulation, the supervisory expectation for disclosures during the interim period is that financial market participants should provide an explicit quantification, through the numerical disclosure of the percentage, of the extent to which investments underlying the financial product are taxonomy-aligned. In addition, the Supervisory Statement provides that, while estimates should not be used, where information is not readily available from investee companies’ public disclosures, financial market participants may rely on equivalent information on taxonomy-alignment obtained directly from investee companies or from third party providers.
The Supervisory Statement includes an annex which contains a table highlighting the application timelines under the SFDR and the Taxonomy Regulation.
Click here to access the press release.
Click here to access the Supervisory Statement.