ISDA Responds to ESAs on Taxonomy-related Sustainability Disclosures
19 May 2021
ISDA responded to question four of a joint consultation paper by European Supervisory Authorities on taxonomy-related sustainability disclosures.
ISDA recommends the inclusion of derivatives in the
proposed key performance indicators (KPIs) for disclosing the extent to
which investments are aligned with the taxonomy, but only where they are
used to attain the environmental or social characteristics promoted by
the financial product or the sustainable investment objective of the
financial product. Additionally, ISDA suggests this approach should be
applied consistently across all relevant calculation KPIs in respect of
Non-Financial Reporting Directive entity reporting under article 8 of
the Taxonomy Regulation, as differing interpretations could create
investor confusion, result in fragmented outcomes and minimize the
potential for evolution of risk management practices in the
environmental, social and governance space going forward.
SDA Responds to ESAs on Taxonomy-related Sustainability Disclosures(pdf)
ISDA
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