Targeted consultation on the implementation of the Sustainable Finance Disclosures Regulation (SFDR)

The ABBL responded to the EC’s Targeted Consultation on SFDR Implementation. As a reminder, the EC launched a targeted consultation and a public consultation on 14 September 2023 to assess the implementation of the SFDR. The focus of the consultation was directed towards legal certainty, the usability of the regulation, and proposals for enhancing the existing framework. The Commission sought insights into the practical implementation of SFDR, potential shortcomings, and its interaction with other elements of the European sustainable finance framework. The objective was to explore options for improving the overall framework.
The Association published its response to the consultation, highlighting certain aspects:
(1) Firstly, the ABBL underscored the significance of SFDR’s overarching objective, aiming to enhance transparency regarding sustainability information in the market and empower investors to make well-informed decisions.
(2) Secondly, the ABBL pointed out the lack of coherence between SFDR and other components of the EU Sustainable Finance framework, particularly with regard to MiFID sustainability rules and concepts of clients‘ sustainability preferences.
(3) Thirdly, the ABBL acknowledged the considerable efforts and resources invested by Financial Market Participants in building on SFDR elements and familiarizing the market with them.
(4) Lastly, the ABBL advocated for further harmonization and simplification of the current disclosure requirements for all SFDR financial products. This call for streamlining was coupled with the urgency to address data gaps hindering increased capital flow towards sustainable investments.