

European Union: 

Supervisory Statement On The Application Of The EU Sustainable Finance Disclosure Regulation And The EU Taxonomy Regulation



To print this article, all you need to have is to be registered or login on Mondaq.com.
On March 25, 2022, the 3 European supervisory authorities
− the European Banking Authority, the European Insurance policies and
Occupational Pensions Authority and the European Securities and
Markets Authority (collectively the “ESAs”) −
revealed an up to date joint assertion on the
application of Regulation (EU) 2019/2088 on
sustainability-associated disclosures in the fiscal companies sector
(“SFDR”). This up-to-date statement replaces the prior joint
statement released in February 2021 in relation to the SFDR, and
supplies new steering on the application of Regulation (EU) 2020/852 on the
institution of a framework to facilitate sustainable investment decision
(the “Taxonomy Regulation”).
This assertion provides more guidance to companies on SFDR
compliance in the absence of finalised detailed disclosure
necessities under EU secondary laws (known as Regulatory
Technical Benchmarks, or “RTS”). Although the entity and
merchandise disclosure stage needs in SFDR have been applicable
given that March 10, 2021, the RTS have been regularly delayed, and the
day established for their entry into power is now January 1, 2023.
Equally, the sustainability disclosures demanded beneath the
Taxonomy Regulation will utilize from January 1, 2022 for weather
change targets, but the RTS below the Taxonomy Regulation will
not implement until eventually January 1, 2023, in tandem with the RTS beneath the
SFDR.
The Statement is intend to alleviate the hazard of inconsistent
application and countrywide supervision of the SFDR and the Taxonomy
Regulation disclosures through this interim period of time until finally 2023. The
critical advice in the statement consists of:
- 
- a timeline setting out the application dates and summary
direction for every ingredient of the SFDR and Taxonomy Regulation
regime - draft variations of the RTS to be utilised as a reference for
implementing the disclosure obligations set in SFDR and the Taxonomy
Regulation. It is crucial to be aware, having said that, that these steps
may well be topic to further alter. The ESAs recommend that countrywide
authorities need to really encourage industry contributors to “use the
interim time period right up until 1 January 2023 to get ready for the software
of the RTS” - clarification that any economical solution that falls inside the
specific disclosure obligations in the Taxonomy Regulation should really
consist of an “express quantification” of the extent to
which the solution can be regarded taxonomy-aligned by employing a
“numeric disclosure as a share of the extent to which
investments underlying the economical products are
taxonomy-aligned” and - estimates should really not be utilized when calculating
taxonomy-alignment of in-scope money items under the
Taxonomy Regulation. Nevertheless, the ESAs suggest that “the place
information and facts [on sustainability] is not readily offered from
general public disclosures by investee corporations, monetary industry
members may perhaps depend on equivalent data on taxonomy
alignment obtained straight from the investee organizations or from
3rd occasion providers.”







The articles of this post is meant to present a normal
information to the matter matter. Specialist advice must be sought
about your distinct situations.
Common Content ON: Finance and Banking from European Union
