On Wednesday 12 April, the European Financial Supervisory Authorities (ESAs) - ESMA, EBA and EIOPA - launched a consultation on their proposed amendments to the delegated regulation of the Sustainable Finance Disclosure Regulation.
In April 2022, the Joint Committee of the ESAs was mandated by the European Commission to review and revise the regulatory technical standards set out in the delegated regulation.
The three authorities have proposed amendments to address problems that have arisen since the introduction of the ‘SFDR’, including the risk of greenwashing (see EUROPE 13103/21). In particular, they suggested extending the list of universal social indicators for the publication of the main negative environmental and social impacts of investment decisions, such as revenues from non-cooperative tax jurisdictions or interference in trade union formation.
They also wish to refine the content of other negative impact indicators and their respective definitions, applicable methodologies, calculation formulas and the presentation of the share of information coming directly from investee companies, sovereign states, supranationals or real estate assets.
The ESAs also propose to add product information on decarbonisation targets, including intermediate targets, the level of ambition and how the target will be achieved.
Finally, the European authorities refer to improving information on how sustainable investments ‘do not significantly harm’ the environment and society. And suggest simplifying the pre-contractual and periodic information models for financial products.
The consultation will close on Tuesday 4 July, with a view to the ESAs delivering their final report by the end of October. (Original version in French by Anne Damiani)