On 6 April 2022, the European Commission has published the final Regulatory Technical Standards (RTS) supplementing the Sustainable Finance Disclosure Regulation (SFDR), which shall apply from 1 January 2023. The RTS will define the new standard for sustainability-related disclosures in the financial services sector in the EU and supplements provisions of the SFDR and of the Taxonomy Regulation. Prior to that, the Joint Committee of the European Supervisory Authorities (ESA) has published its updated statement on the application of the SFDR on 24 March 2022. This update resulted from the postponement of the application of the RTS to 1 January 2023. The update seeks to mitigate the risk of divergent application of the SFDR and Article 5 and 6 of the Taxonomy Regulation (TR).
The final RTS as published by the European Commission on 6 April 2022, consist of one Delegated Regulation. The RTS define details on the implementation of ESG-related disclosure requirements under the SFDR and the Taxonomy Regulation at entity and product level and include five annexes with templates for principal adverse impact statements, precontractual disclosure and periodic reports. The Delegated Regulation will now have to be translated into all official EU languages. However, the European Parliament and the Council have three months from the date of notification of the adoption by the Commission to raise objections to the RTS. As planned, the final RTS are envisaged to become applicable from 1 January 2023.
The main points from the ESAs update of the supervisory statement in light of the publication of the final RTS by the Commission are:
Authored by Jochen Seitz, Rita Hunter, Roman Rehmke, Simon Recher, Mathilde Soetens, James Alder, Ines, Manero Flock, and Isha Thacker.
Sustainable finance disclosures
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