European Supervisory Authorities (ESAs): proposed amendments to the Delegated Regulation of the Sustainable Finance Disclosure Regulation (SFDR)

The ESAs (European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets) are proposing changes to the disclosure framework to address issues that have emerged since the introduction of SFDR. The authorities seek feedback on the amendments that envisage:

• extending the list of universal social indicators for the disclosure of the principal adverse impacts of investment decisions on the environment and society, such as earnings from non-cooperative tax jurisdictions or interference in the formation of trade unions;
• refining the content of other indicators for adverse impacts and their respective definitions, applicable methodologies, formulae for calculation as well as the presentation of the share of information derived directly from investee companies, sovereigns, supranationals or real estate assets; and
• adding product disclosures regarding decarbonisation targets, including intermediate targets, the level of ambition and how the target will be achieved.

In this alert, you will read more about the general background, the next steps, and how Deloitte can help.