Joint ESA consultation on Sustainable Finance disclosures – EBF response
BRUSSELS, 15 July 2020 – The European Banking Federation has responded to the joint consultation of the European Supervisory Authorities (ESAs) setting out the proposed Regulatory Technical Standards (RTS) on content, methodologies and presentation of disclosures under the Sustainable Finance Disclosure Regulation, known as SFDR.
The EBF supports the efforts of European co-legislators towards financing a more sustainable economy and welcomes the recent regulation on disclosures relating to sustainable investments and sustainability risks. The federation is in favour of increased transparency in sustainable investments and sustainability risks, provided disclosures are balanced and help consumers make informed financial decisions aligned with their objectives.
Constant discussions, exchange of information and proactive decisions have been taken in order to ensure a swift compliance to guarantee that our members apply the key regulations on Sustainable Finance put forward by the European Regulators.
However, the EBF is concerned the proposed elements of the draft RTS supporting the Regulation might lead to a miscount of adverse impacts, create confusion and could be counterproductive with the very aims of the regulation and the broader sustainable finance growth EU strategy. The indicators proposed seem to be not coherent with the broader package of EU disclosure requirements.
The path to make the Action Plan on Financing Sustainable Growth a practicable reality and to be able to finance the Green Deal is forcing answers that are not always aligned to the practical reality both in data production and material outcome. The majority of firms, as issuers, are not yet capable to provide sound and reliable sets of data by themselves. Instead, they need to buy their own data and related services to correctly respond to the need of the future disclosure of the impacts, whatever they will look like.
For more information:
Daniel Bouzas, Policy Advisor, Financing Growth, email@example.com
Pauline Guérin, Senior Policy Advisor, Financing Growth firstname.lastname@example.org
Denisa Avermaete, Sustainable Finance Senior Adviser, email@example.com