The European Supervisory Authorities have published a statement providing clarifications on the draft RTS with regard to the content, methodologies and presentation of disclosures under the Sustainable Finance Disclosure Regulation (SFDR),
The statement aims to provide clarity on key areas of the RTS including:
- uses of sustainability indicators;
- principal adverse impact (PAI) disclosures;
- disclosures for direct and indirect investments;
- taxonomy-related financial product disclosures;
- ‘do not significantly harm’ (DNSH) disclosures; and
- disclosures for products with investment options.
This follows the European Commission's publication of its answers to the ESAs’ recent questions on the SFDR and the Taxonomy Regulation.
Following the numerous requests for clarifications received from stakeholders and national competent authorities relating to the practical implications and given the significant breadth and technical complexity of these rules, this statement by the ESAs intends to provide clarification on the ESAs’ draft RTS issued under [SFDR].