The first ESAs’ annual report on the extent of voluntary disclosure of principal adverse impact under the SFDR has been published

On the 28th of July 2022, the Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published the first annual report on the extent of voluntary disclosure of principal adverse impact under the Sustainable Finance Disclosure Regulation (SFDR). Pursuant to the SFDR obligation to submit a report to the Commission on best practices and make recommendations towards voluntary reporting standards, the ESAs have developed and published this first annual report which highlights examples of best practices, as well as the less good examples of voluntary disclosures, together with the ESAs’ preliminary recommendations. The report is based on a survey of National Competent Authorities (NCAs) and represents a foundation for further guidance on the implications for due diligence disclosures.
In this alert, you will read more about the highlights of the ESAs’ annual report & next steps.