Legal & Regulatory News

ESAs submit additional queries to the European Commission in relation to SFDR

On 13 September 2022, the European Supervisory Authorities (ESAs) – comprised of the European Securities and Markets Authority, the European Banking Authority, and the European Insurance and Occupational Pensions Authority – published an additional eight questions to the European Commission (the Commission) in order to seek to clarify certain aspects of the Sustainable Finance Disclosure Regulation (SFDR).

The questions asked of the Commission reflect key uncertainties in relation to SFDR, including: -

·         the definition of "sustainable investments" in Article 2(17), SFDR;

·         what it means to "consider" principal adverse impacts (PAI) in Article 7(1)(a), SFDR;

·         the definition of products which have an objective of the reduction of carbon emissions in Article 9(3), SFDR;

·         the timing of periodic reports for portfolio managers in Articles 11(2) and 60, SFDR; and

·         the 500 employee test for mandatory PAI compliance in Articles 4(3) and 4(4), SFDR.

The Commission is yet to submit any formal response to these queries.

Click here to access the additional queries.