Entry into Force of the Sustainable Finance Disclosure Regulation and Publication of joint supervisory Statement and final Report with detailed Provisions regarding the Disclosure Regulation

In its report, [3] the Joint Committee made a number of proposals, including a proposal for concrete indicators for the main negative effects on sustainability factors (principal adverse impacts), reporting templates for use in sustainable financial products both prior to the conclusion of the agreement and in the periodic reporting, as well as product information that must be available on websites. Further, the Joint Committee proposed that the detailed provisions should enter into force on 1 January 2022. However, it is up to the European Commission to adopt the proposals, including the proposed date of entry into force.

Further, the Joint Committee have issued a statement, urging authorities and market participants to act in accordance with the report from 10 March 2021, when the Regulation enters into force, and until the detailed provisions enter into force. An appendix to the statement contains an overview of effective dates and more specific guidance. [4]

Both the regulation, the detailed provisions yet to be passed by the European Commission, and the statement highlight the increased focus on ESG and transparency in relation to investors.



[1] REGULATION (EU) 2019/2088 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 November 2019 on sustainability‐related disclosures in the financial services sector

[2] i.e. (i) insurance undertakings making available an insurance‐based investment product (IBIP); (ii) investment firms which provides portfolio management; (iii) institutions for occupational retirement provisions (IORP); (iv) manufacturers a pension products; (v) alternative investment fund managers (AIFM); (vi) pan‐European personal pension product (PEPP) provider; (vii) managers of certain qualified registered venture capital funds (viii) managers of certain registered qualifying social entrepreneurship funds; (ix) a management companies of undertakings for collective investments in transferable securities (UCITS management company); and (x) credit institution which provides portfolio management;

[3] https://www.esma.europa.eu/press-news/esma-news/three-european-supervisory-authorities-publish-final-report-and-draft-rts

[4] https://www.esma.europa.eu/press-news/esma-news/esas-issue-recommendations-application-regulation-sustainability-related