The European Supervisory Authorities (ESAs) have finalized their recommendations for changes to the rules about disclosing information on sustainable finance. These rules, part of the Sustainable Finance Disclosure Regulation (SFDR), aim to make financial markets more transparent regarding sustainability risks and impacts.
The ESAs proposed several updates, including new requirements for reporting on social issues like exposure to tobacco production and low wages. They also suggested disclosing information about greenhouse gas emission reduction targets for certain financial products. The changes are a response to a request from the European Commission, and they aim to improve how financial institutions provide information about their sustainable practices.
The European Commission will now review these proposals, and if approved, they will become part of the SFDR regulation. The new rules would apply regardless of another ongoing review of the SFDR regulation itself.
