While some of Europe’s largest asset managers are making credible progress on sustainability reporting, many are still failing to provide instructive information on how they manage the negative environmental and social impacts of their investments, according to a study by the NGO ShareAction, published on Wednesday 28 May.
In their view, the review of the EU Sustainable Finance Disclosure Regulation (SFDR) presents “a key opportunity to build on progress and strengthen the current framework”, by clarifying and improving engagement and due diligence disclosures. This would make the information more usable and comparable for end investors.
ShareAction therefore recommends: - uphold and streamline entity-level engagement disclosures; - introduce engagement disclosure requirements across new product categories; - improve the accessibility of disclosures.
The European Commission’s Platform on Sustainable Finance has issued recommendations for a revision of the regulation (see EUROPE 13586/21).
Read the study: https://aeur.eu/f/h3l (Original version in French by Anne Damiani)