Featured Product

    ESAs Propose Regulatory Standards on ESG Disclosures

    April 23, 2020

    ESAs launched a consultation on the environmental, social, and governance (ESG) disclosure standards for financial market participants, advisers, and products. These draft regulatory technical standards on content, methodology, and presentation of ESG disclosures have been developed under the Sustainable Finance Disclosure Regulation or SFDR. The consultation contains proposals on the "do not significantly harm" principle, under a recently agreed regulation on the establishment of a framework to facilitate sustainable investment (the Taxonomy Regulation). ESAs invite feedback to the consultation by September 01, 2020. After the consultation closes, the draft technical standards will be finalized and submitted to EC.

    These standards aim to strengthen protection for end-investors; improve the disclosures to investors from a broad range of financial market participants and financial advisers; and improve the disclosures to investors regarding financial products. The SFDR empowers the ESAs to develop technical standards on the content, methodology, and presentation of ESG disclosures both at entity and product levels.

    Entity-Level Principal Adverse Impact Disclosures

    The principal adverse impact that investment decisions have on sustainability factors should be disclosed on the website of the entity; the proposals included in the draft technical standards set out rules for how this public disclosure should be done. The disclosure should take the form of a statement on due diligence policies with respect to the adverse impact of investment decisions on sustainability factors, showing how investments adversely impact indicators in relation to:

    • Climate and the environment
    • Social and employee matters, respect for human rights, and anti-corruption and anti-bribery matters

    ESAs have included draft indicators for adverse impact, based on consultations with the Joint Research Center of EC and the European Environment Agency.

    Product-Level ESG Disclosures

    The sustainability characteristics or objectives of financial products should be disclosed in their pre-contractual and periodic documentation and on their website. The proposals included in the draft technical standards indicate the rules for how this disclosure should be carried out, ensuring transparency to investors regarding how products meet their sustainability characteristics or objectives. They also set out the additional disclosures that should be provided by products that have designated an index as a reference benchmark. Finally, the product-level proposals set out suggested provisions for disclosing how a product based on sustainable investments complies with the "do not significantly harm" principle. 

     

    Related Links

    Comment Due Date: September 01, 2020

    Keywords: Europe, EU, Banking, Insurance, Securities, Disclosures, ESG, Sustainability-Related Disclosures, Climate Change Risk, Sustainability-Related Disclosures, Regulatory Technical Standards, Sustainable Finance, ESAs

    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571