The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) issued on 17th March a Consultation Paper seeking input on draft Regulatory Technical Standards (RTS) regarding disclosures of financial products investing in economic activities that contribute to an environmental investment objective. These economic activities are defined by the EU Regulation on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation).
The proposed draft RTS aim to:
- facilitate disclosures to end investors regarding the investments of financial products in environmentally sustainable activities.; and
- create a single rulebook for sustainability disclosures under the Regulation on sustainability-related disclosures in the financial services sector (SFDR) and the Taxonomy Regulation. This will be done by amending the draft RTS under the SFDR, to minimise overlapping or duplicative requirements between the two regulations.