ESAs propose new rules for taxonomy-related product disclosures
On 22 October 2021 the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have delivered to the European Commission (EC) 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). The disclosures relate to financial products that make sustainable investments contributing to environmental objectives.
The Final Report with draft Regulatory Technical Standards (RTS) contains proposals:
- For products under Articles 5 and 6 of the Taxonomy Regulation
- For pre-contractual and periodic disclosures
- The EC will scrutinise the draft RTS and decide whether to endorse them within 3 months of their publication.
- The Commission has informed the European Parliament and Council that it intends to incorporate all the SFDR RTS, meaning both the original ones submitted to the Commission in February 2021 as well as the ones covered in this Final report, in one instrument.