Key SFDR documents - latest
- Jonathan Scott-Webb
- Dec 8, 2023
- 2 min read
Updated: Apr 7, 2024
The EU Action Plan on Sustainable Finance is constantly evolving with consequences to asset managers globally. Regulation (EU) 2019/2088 (link) which is known as the Sustainable Finance Disclosure Regulations (SFDR) lays down sustainability-related disclosure obligations towards end investors for companies in the financial services sector
The SFDR started applying in March 2021 and requires financial market participants and financial advisers to disclose how they integrate sustainability risks and principal adverse impacts in their processes at both entity and product levels. It also introduces additional product disclosures for financial products making sustainability claims.
There are two levels to the SFDR: level 1 and level 2.
Level 1 SFDR does not disclose the technical detail on what has to be disclosed, but is more general by mandating draft Regulatory Technical Standards (RTS) to be more specific with the content of the disclosures.
Level 2 SFDR can basically be understood as the mandatory implementation of the SFDR’s Regulatory Technical Standards (RTS). The RTS lays out the detailed annual reporting disclosure requirements that in-scope firms must comply with.
What are Regulatory Technical Standards?
The SFDR empowers European Supervisory Authorities ("ESAs") such as the EBA, EIOPA or ESMA, to develop Regulatory Technical Standards ("RTS") which define the requirements of the SFDR in greater detail.
The ESAs use a Joint Committee (JC) to oversee and develop consultations, reviews, draft and final RTS documents on topics such as the content, methodology and presentation of ESG disclosures both at entity level and at product level.
An evolution of some of the key reports and regulations are outlined below:
Date | Title | Description | Link |
|---|---|---|---|
2 Feb 2021 | Report on draft RTS (JC 2021 03) | This RTS looks at the content, methodologies and presentation of disclosures for SFDR. | |
22 Oct 2021 | Report on draft RTS (JC 2021 50) | This report contains proposed pre-contractual and periodic reports as well as draft wording for the RTS. | |
6 April 2022 | Legislated RTS - Commission Delegated Regulation (EU) 2022/1288 | The Commission issued the RTS covering the concept of DNSH. The RTS entered force on 14 August 2022 and has been applicable since 1 January 2023. | |
30 Sept 2022 | Report on draft RTS | Final Report on SFDR amendments for nuclear and gas activities. | |
31 Oct 2022 | Legislated RTS - Commission Delegated Regulations (EU) 2023/363 | This legislation covers more detailed guidance on pre-contractual and periodic disclosure. | |
12 April 2023 | Review of SFDR PAIs (JC 2023 09) | Consultation on PAIs and financial product disclosures. | |
04 Dec 2023 | Final report on draft RTS | Updated guidance on RTS from the Joint Committee covering proposals around: a dashboard for product information, inclusion of additional social PAIs and removal of UN GP compliance | |
24 April 2023 | xxx | Securitization... | |
05 Mar 2024 | xxx | xxx info on delgation |
Other helpful resources:
ESMA library
The ESMA hosts a library of documentation where RTS information can be found : here.
Platform on sustainable finance
The Platform is an advisory body subject to the Commission’s horizontal rules for expert groups and can be found here : here.
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