Summary Report of the Open and Targeted Consultations on the SFDR assessment

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Summary Report of the Open and Targeted Consultations on the SFDR assessment

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Temáticas
Business and biodiversity basics Identifying and measuring impacts and dependencies Integrating biodiversity into a business context

The Sustainable Finance Disclosure Regulation (SFDR) came into force in March 2021 and requires financial market participants and financial advisers to disclose, at entity and product level, how they integrate sustainable finance. financial market participants (FMPs) and financial advisors disclose at the entity and product level how they integrate sustainability risks and key adverse impacts into their investment decision-making processes. It also introduces additional information for financial products that make sustainability claims. The aim of the Regulation is to provide transparency to investors on the sustainability risks that may affect the value of their investments and on the adverse effects of such investments.

This report summarises the responses received to the consultation on the revision of the Financial Services Sustainability Disclosure Regulation (SFDR).

The document includes, among others, the majority opinion in favour of:
  • The positive effects in terms of transparency of the SFDR but with some limitations.
  • Create a categorisation of sustainability financial products for better and transparent marketing and distribution, especially among retail investors and customers, although there are discrepancies regarding the main alternatives and criteria to be followed.
  • The creation of a product category with a focus on the transition.
  • Strengthen and ensure greater interoperability between the SFDR, CSRD, MIFID II, IDD, PRIIPs kid, Taxonomy, the Benchmarking Regulation and the rules for the use of sustainability terms in fund names.
  • Clarify key concepts such as sustainable investing, and the criteria for the application and interoperability of major adverse sustainability impacts (PIAs) at the entity level and the principle of not causing significant harm ("DNSH") at the product level.
  • Simplify entity-level reporting requirements.
  • Require minimum sustainability reporting for all financial products and additional requirements for products that are marketed as sustainable.

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