ESAs report on extent of voluntary disclosures of PAI under the EU SFDR

Article summary

The three European Supervisory Authorities (the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority—ESAs) have published the first annual report to the European Commission on the extent of voluntary disclosures of principal adverse impact (PAI) under Article 18 of Regulation (EU) 2019/2088 (the EU Sustainable Finance Disclosure Regulation (EU SFDR)). The report highlights good practice and areas for improvement, and includes a set of recommendations for national competent authorities (NCAs) to ensure appropriate supervision of financial market participants’ (FMPs) practices, such as running regular surveys in their own market to determine whether supervisory entities comply with Article 4 EU SFDR disclosures.