EU Commission publishes finalised RTS under SFDR
The European Commission has adopted and published final regulatory technical standards (RTS) for the sustainable finance disclosures regulation (SFDR).
Commission Delegated Regulation, which aims to help assess the sustainability performance of financial products, is the result of two reports with draft RTS, published in February and October 2021, by the European Supervisory Authorities (ESAs).
The Commission has published the Commission Delegated Regulation itself, along with Annexes one to five, which include various templates which must be used by funds, including article 8 and 9 funds within SFDR, as well as some article 5 and 6 funds within the taxonomy regulation.
According to the Commission, under these rules financial market participants “will provide detailed information about how they tackle and reduce any possible negative impacts their investments may have on the environment and society.”
While the Commission Delegated Regulation is subject to scrutiny by the European Parliament and Council, SFDR’s Commission Delegated Regulation will apply from 1 January 2023.
The effective date is in keeping with ESMA’s updated sustainable finance implementation timeline, which has taken into account the recent delays of SFDR implementation, as well as how this fits alongside the implementation of the taxonomy regulation and the corporate sustainability reporting directive (CSRD).
To view the published Commission Delegated Regulation, as well as its corresponding annexes, click here.