ESAs propose new rules for taxonomy-related product disclosures
On 22 October 2021, the European Supervisory Authorities (ESAs) published their Final Report with draft Regulatory Technical Standards (RTS) regarding disclosures under the Sustainable Finance Disclosure Regulation (SFDR) as amended by the Regulation on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation).
From 1 July 2022, the regulatory technical standards (RTS) known as level 2 measures of the SFDR regulation will apply. The ESAs7 have published a new final version of these RTS on 22 October 2021 compared to the version of 2 February 2021. This new version of SFDR's RTS has been concatenated in a report that also includes the RTS of the Taxonomy Regulation. The European Commission still has to validate them to take effect 3 months after their publication in the Official Journal of the EU. The Commission intends to incorporate all the SFDR RTS, those of February 2021 and the RTS of the Taxonomy of October 2021, in a single document.
These RTS are necessary to produce the SFDR Report to be appended to the annual report of the financial statements of the Undertaking for Collective Investment or to the KIID8. This SFDR Report includes a number of sustainability indicators for the investments made, the Principal Adverse Impacts, along with analyses and data to be provided in the 4 templates provided in the RTS.