Delay in Applicability of Environmental, Social and Governance Technical Standards
The Sustainable Finance Disclosure Regulation ("SFDR"), which was passed in 2019 and became applicable in 2021, has introduced Environmental, Social and Governance ("ESG") reporting obligations for EU investment funds. These sustainability reporting obligations aim at reducing the marketing practice of greenwashing in the investment services industry. However, whilst the SFDR provided for the obligation to carry out ESG reporting, the Regulatory Technical Standards ("RTS"), which stipulate how the data relating to the financial product is to be presented to investors, was not yet harmonised across the EU. Such omission to provide a harmonised methodology resulted in investors being unable to…
Mamo TCV Advocates10th May 2022