ESAs affirm timeline and expectations for SFDR
The European Supervisory Authorities – comprising the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority – recently updated their joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation (SFDR). It confirms the new timeline for full implementation, which has been delayed until 1 January 2023. It also clarifies the ESAs expectations of market participants and national competent authorities with respect to the SFDR and the other regulations with which it interacts, encouraging them to use the transition period to prepare. With the EU Taxonomy Regulation now in force, financial market participants are already expected to make quantitative disclosures on the extent to which their investments meet sustainability criteria.
