Joint Consultation Paper on ESG disclosure standards (ESAs)

European Supervisory Authorities (ESAs)

Following the adoption of the 2015 Paris Agreement on climate change and the United Nations (UN) 2030 Agenda for Sustainable Development, the European Commission (EC) expressed in the Action Plan on Financing Sustainable Growth its intention to clarify fiduciary duties and increase transparency in the field of climate change as well as environmental, social and governance (ESG) risks.

 


CP on ESG disclosure standards (ESAs)

Watch video

In this context, the European Supervisory Authorities (ESAs) have published the Joint Consultation Paper on ESG disclosures standards for financial market participants, advisers and products, with the aim of seeking input to develop draft Regulatory Technical Standards (RTS) on sustainability-related disclosures in the financial services sector (SFDR). This document specifically presents a proposal on the content, methodologies and presentation of this information. Furthermore, this consultation paper includes an example of the new report developed, the Principal Adverse Impacts Statement, as well as a preliminary analysis of the expected impacts of the proposed draft RTS, in order to gather stakeholder feedback on possible costs and benefits of the proposals.

This Technical Note summarises the main aspects included in the Joint Consultation Paper on ESG disclosures standards published by the ESAs.

Executive summary

Joint Consultation Paper on ESG disclosures standards published by the ESAs seeks input to develop draft Regulatory Technical Standards (RTS) on sustainability-related disclosures in the financial services sector (SFDR).

Scope of application

This Consultation Paper is addressed to financial market participants and financial advisers, with regards to the financial products they offer.

Main content

  • Transparency of adverse sustainability impacts. This draft RTS provides a specification of the content, methodology and presentation of the information regarding sustainability indicators in relation to adverse impacts on the climate and other environment-related adverse impacts, as well as in the fields of social and employee matters, respect for human rights, anti-corruption and anti-bribery matters. The document includes an example of the new report developed, the Principal Adverse Impacts Statement.
  • Pre-contractual product disclosure. This draft RTS sets out the details on the content and presentation of the information to be disclosed at pre-contractual level in the sectoral documentation.
  • Website product disclosure. This draft RTS sets out the details of the content and presentation of information to be publicly disclosed on websites by financial market participants.
  • Public disclosure in periodic report. This draft RTS sets out the details of the content and presentation of information to be disclosed in periodic reports.

Access the full document in Spanish.