Legal & Regulatory News
ESAs tell national regulators to consider ‘enforcement tools’ for SFDR
28 September 2023
On 28 September 2023, the European Supervisory Authorities (ESAs) published their 2023 annual joint report on the extent of voluntary disclosure of principal adverse impacts (PAI) under the Sustainable Finance Disclosure Regulation (SFDR) sustainability‐related disclosures in the financial services sector.
The report outlines key findings from a survey of National Competent Authorities (NCAs) on the current state of voluntary PAI disclosures under the SFDR. Despite an overall improvement in compliance with SFDR following the 2022 report, the survey highlighted “significant variation in the extent of compliance with the requirements and the quality of disclosures both across financial market participants and jurisdictions”.
Some of the key recommendations that the ESAs have made to NCAs in the report include: -
- considering whether the use of enforcement tools could be appropriate;
- providing additional support to raise understanding on how to comply with SFDR; and
- raising industry awareness around SFDR disclosures and best practice.
Click here to read the ESAs joint report.