In the amending final draft RTS, the ESAs propose to add specific disclosures to provide transparency about investments in taxonomy-aligned gas and nuclear economic activities.
The three European Supervisory Authorities (EBA, EIOPA and ESMA –
ESAs) have today delivered to the European Commission (EC) their Final
Report with draft Regulatory Technical Standards (RTS) regarding the
disclosure of financial products’ exposure to investments in fossil gas
and nuclear energy activities under the Sustainable Finance Disclosure
Regulation (SFDR).
In the amending final draft RTS, the ESAs propose to add specific
disclosures to provide transparency about investments in
taxonomy-aligned gas and nuclear economic activities. These disclosures,
which are in line with the definitions in the Complementary Climate Delegated Act, will help investors make informed decisions.
Specifically, the disclosures:
- add a yes/no question in the financial product templates of
the SFDR Delegated Regulation to identify whether the financial product
intends to invest in such activities; if the answer was yes, a graphical representation of the proportion of investments in such activities would be required; and
- implement minor technical revisions to the Delegated Regulation to correct inconsistencies observed after its publication.
The ESAs consider the existing disclosures in the SFDR Delegated
Regulation sufficient for fossil gas or nuclear energy investments by
financial products that are not covered by the EU Taxonomy.
Next steps
The EC will scrutinise the draft RTS and endorse them within three
months of their publication. Due to the urgency of the matter and the
challenging application timeline of the Complementary Climate Delegated
Act, the ESAs have left it to the EC to include an expected application
date when they endorse the draft RTS.
Background
The EC mandate
to the ESAs requested the delivery of the amending draft RTS in
exceptionally urgent circumstances by 30 September. Due to the urgency
of the matter, the ESAs could not conduct a public consultation on the
proposals. Nevertheless, the ESAs’ stakeholder groups were asked for
feedback and a workshop was held with consumer representative
associations.
EIOPA
© EIOPA
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