SFDR Level 2 RTS Proposed Changes
On 12th April 2023 the European Supervisory Authorities (ESAs) launched a consultation paper proposing changes to SFDR Level 2 RTS.
The purpose of the review is to broaden the disclosure framework and address some technical issues that have emerged since the SFDR was originally agreed.
The ESAs are proposing the following changes:
Extension of the list of social indicators for principal adverse impacts; (namely tax avoidance, exposure to tobacco, labour issues)
Refinement of the content of a number of the other indicators for adverse impacts and their respective definitions, applicable methodologies, metrics and presentation and;
Amendments regarding decarbonisation (the ESAs’ preferred term is “GHG emissions reduction”) targets.
In addition to what was explicitly requested by the Commission, the ESAs have considered further changes to the SFDR Delegated Regulation based on experiences shared by stakeholders through Q&As and observations. Those proposed changes relate to:
DNSH disclosure design options;
Simplification of the templates; and
Other technical adjustments.
Timeline
Consultation closes on 4th July 2023
Draft RTS expected by end of October 2023
Final rules expected by end of 2023/early 2024.
Further Reading
