1 minute read 18 Dec 2020

What is expected from 10 March 2021 in terms of sustainability disclosures?

Authors
Renaud Breyer

EY Luxembourg Partner, Sustainability Leader

ACCA. 19 years at EY. Consulting services for CFO. Passionate about sustainability.

Vanessa Müller

EY Luxembourg Consulting Partner, ESG Services Leader

Fifteen-plus years of experience in the financial services industry. Wealth management and capital markets experience. Striving for a positive footprint, professionally and personally.

1 minute read 18 Dec 2020

CSSF press release on the sustainability-related disclosures

T
he European Commission has addressed a letter to the European Supervisory Authorities on 20 October 2020 to confirm the application of the initial requirements of the regulation 2019/2088 on the sustainability-related disclosures in the financial services sector (“SFDR”) from 10 March 2021. 

The draft regulatory technical standards (“RTS”) detailing the website disclosure of principal adverse impacts by investment fund managers, and the website and prospectus disclosures of financial products with either environmental or social characteristics (“light green”) or sustainable investment objectives (“dark green”), will not be available by the 30 December 2020 as initially foreseen. However, the Commission considers that the application of the SFDR requirements is not conditional to the entry into force or application of the RTS and that entities in scope should prepare disclosures on the basis of the general principles laid down in SFDR, notably on sustainability risks, the promotion of environmental and social characteristics or sustainable investments, and adverse impacts.

In particular, light green and dark green fund documentation should describe how the level of sustainability is achieved by complying with the disclosure principles set out in articles 8 and 9 of SFDR. 

Investment fund managers should use the information reported, where applicable, pursuant to the Directive 2013/34/EU9 or international standards they adhere to, for the purpose of their disclosure on the principal adverse impacts of their investment decisions.

For more information, please visit: CSSF press release on the sustainability-related disclosures

Summary

CSSF communicates on the application of the SFDR requirements which is not conditional to the entry into force or application of the delayed technical standards.

About this article

Authors
Renaud Breyer

EY Luxembourg Partner, Sustainability Leader

ACCA. 19 years at EY. Consulting services for CFO. Passionate about sustainability.

Vanessa Müller

EY Luxembourg Consulting Partner, ESG Services Leader

Fifteen-plus years of experience in the financial services industry. Wealth management and capital markets experience. Striving for a positive footprint, professionally and personally.