ISDA responds to ESA consultation on taxonomy-related sustainability disclosures

Article summary

The International Swaps and Derivatives Association (ISDA) has responded to question four of a joint consultation paper by the European Supervisory Authorities (ESAs) on taxonomy-related sustainability disclosures. In its response, ISDA recommends that derivatives be included in the proposed performance indicators (KPIs) for disclosing the extent to which investments are aligned with the taxonomy. However, it notes that this should only be done where ‘they are used to attain the environmental or social characteristics promoted by the financial product or the sustainable investment objective of the financial product’.