Current consolidated version: 12/07/2020, ELI: http://data.europa.eu/eli/reg/2019/2088/oj, REGULATION (EU) 2019/2088 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL, on sustainability‐related disclosures in the financial services sector. Financial market participants shall publish and maintain on their websites: where they consider principal adverse impacts of investment decisions on sustainability factors, a statement on due diligence policies with respect to those impacts, taking due account of their size, the nature and scale of their activities and the types of financial products they make available; or. The survey is open for comments until 16 October 2020. A sustainability risk means an environmental, social or governance event or condition that, if it occurs, could cause a negative material impact on the value of the investment, as specified in sectoral legislation, in particular in Directives 2009/65/EC, 2009/138/EC, 2011/61/EU, 2013/36/EU, 2014/65/EU, (EU) 2016/97, (EU) 2016/2341, or delegated acts and regulatory technical standards adopted pursuant to them. By 10 September 2022 and every year thereafter, the ESAs shall submit a report to the Commission on best practices and make recommendations towards voluntary reporting standards. In order to reach the objectives of the Paris Agreement and significantly reduce the risks and impacts of climate change, the global target is to hold the increase in the global average temperature to well below 2 °C above pre‐industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre‐industrial levels. The new Sustainable Finance Disclosure Regulation1(SFDR) introduced various disclosure-related requirements for financial market participants and financial advisors at entity, service and product level. The ESAs shall update the regulatory technical standards in the light of regulatory and technological developments. 1. In … In such cases, manufacturers of pension products as referred to in point (1)(d) of Article 2 of this Regulation shall include manufacturers of pension products operating national social security schemes and of pension products referred to in point (8) of Article 2 of this Regulation. The survey is open for comments until 16 October 2020. This document is an excerpt from the EUR-Lex website, Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (Text with EEA relevance), OJ L 317, 9.12.2019, p. 1–16 (BG, ES, CS, DA, DE, ET, EL, EN, FR, GA, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV), In force: This act has been changed. The regulation introduces a number of sustainability-related requirements which go further than just reporting and will result in operational and structural changes from fund managers distributing their funds in Europe. SFDR will have a wide-ranging impact. EU Taxonomy Regulation for Sustainable Activities; The creation of various standards and labels for green financial products, such as an EU Ecolabel for Financial Products and EU Green Bond Standard, is also on the regulatory agenda. Bringing clarity to investors . The European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today a survey seeking public feedback on presentational aspects of product templates, pursuant to Article 8(3), Article 9(5) and Article 11(4) of Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services (SFDR). Disclosures Regulation. an insurance product which is made available to a professional investor and which offers a maturity or surrender value that is wholly or partially exposed, directly or indirectly, to market fluctuations; ‘alternative investment fund manager’ or ‘AIFM’ means an AIFM as defined in point (b) of Article 4(1) of Directive 2011/61/EU; ‘investment firm’ means an investment firm as defined in point (1) of Article 4(1) of Directive 2014/65/EU; ‘portfolio management’ means portfolio management as defined in in point (8) of Article 4(1) of Directive 2014/65/EU; ‘institution for occupational retirement provision’ or ‘IORP’ means an institution for occupational retirement provision authorised or registered in accordance with Article 9 of Directive (EU) 2016/2341 except an institution in respect of which a Member State has chosen to apply Article 5 of that Directive or an institution that operates pension schemes which together have less than 15 members in total; a pension product as referred to in point (e) of Article 2(2) of Regulation (EU) No 1286/2014; or. Transparency of adverse sustainability impacts at entity level. Investment decisions and advice might cause, contribute to or be directly linked to effects on sustainability factors that are negative, material or likely to be material. 4. The Technical Expert Group on sustainable finance (TEG) was set up in July 2018 to assist the Commission in the implementation of the action plan and the regulation, in particular the minimum standards for EU climate transition and EU Paris-aligned Benchmarks, and the content and form of the ESG disclosure requirements. It aims to provide more transparency on sustainability within the financial markets in a standardised way, thus preventing greenwashing and ensuring comparability. Regulation (EU) 2019/2088 of 27 November 2019 on sustainability-related disclosures in the financial services sector, as amended. Disclosure requirements are set out at entity and product level. According to recent research, climate change could cost up to 19 per cent. 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