Legal & Regulatory News

European Commission adopts new and updated answers to ESAs' questions on SFDR application

On 14 April 2023, the European Commission published an internal Commission Decision (C(2023) 2281 final) (the Decision), on questions relating to the application of the Sustainable Finance Disclosure Regulation ((EU) 2019/2088) (SFDR) which were submitted by the European Supervisory Authorities (ESAs). Annex 1 to the Decision outlines the Commission's new answers to the questions submitted by the ESAs and Annex 2 outlines updated answers.

The Commission has made it clear that the new and updated answers are required to maintain consistency in the interpretation of the SFDR and to clarify the interactions between the SFDR and different pieces of the sustainable finance framework regarding sustainable investment disclosure rules.

The European Securities and Markets Authority (ESMA) has also published the covering letter from the European Commission to the ESAs which requests that the ESAs publish the new and updated answers on the website of their Joint Committee and respective websites.  The European Commission also suggested that an appropriate disclaimer should be added to explain that the answers are for clarificatory purposes only and do not introduce additional requirements.

The purpose of the Q&As is to help financial market participants apply the SFDR, which has been effective since 10 March 2021.

Click here to view the Commission Decision (C(2023) 2281 final).

Click here to view the covering letter from the Commission to the ESAs.

Click here to view Annex 1.

Click here to view Annex 2.