The three European Supervisory Authorities (the EBA, EIOPA and Esma – collectively known as the ESAs) have opened a consultation on ESG disclosure standards for financial market participants, advisers and products.
The proposed new standards have been developed under the EU Regulation on sustainability-related disclosures in the financial services sector (SFDR), which aims to strengthen protection for end-investors.
The consultation paper also contains proposals under the EU's recently-agreed taxonomy on sustainable investing.
In addition, the proposals require the sustainability characteristics or objectives of financial products to be disclosed in their pre-contractual and periodic documentation and on their website.
They also set out the additional disclosures that should be provided by products that have designated an index as a reference benchmark.
The consultation will run until September 1.
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