Post by Eurosif - The European Sustainable Investment Forum

📄 𝗗𝗿𝗮𝗳𝘁 𝗿𝗲𝗽𝗼𝗿𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗦𝗙𝗗𝗥 𝗿𝗲𝘃𝗶𝗲𝘄: 𝗮 𝗺𝗼𝘃𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗱𝗶𝗿𝗲𝗰𝘁𝗶𝗼𝗻, 𝗯𝘂𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗴𝗮𝗽𝘀 𝗿𝗲𝗺𝗮𝗶𝗻. 👏 𝗧𝗵𝗲 𝗱𝗿𝗮𝗳𝘁 𝗿𝗲𝗽𝗼𝗿𝘁 𝗽𝗿𝗼𝘃𝗶𝗱𝗲𝘀 𝗮 𝘀𝗼𝗹𝗶𝗱 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 𝗽𝗼𝗶𝗻𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗣𝗮𝗿𝗹𝗶𝗮𝗺𝗲𝗻𝘁 𝗱𝗶𝘀𝗰𝘂𝘀𝘀𝗶𝗼𝗻𝘀, 𝗽𝗿𝗲𝘀𝗲𝗿𝘃𝗶𝗻𝗴 𝗸𝗲𝘆 𝗲𝗹𝗲𝗺𝗲𝗻𝘁𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗘𝗖 𝗽𝗿𝗼𝗽𝗼𝘀𝗮𝗹:  • Scope encompassing products targeting professional investors.   • Three product categories with minimum criteria, and an “impact” layer for “sustainable” and “transition” products.   • Additional exclusions of of companies with fossil fuel expansion plans or no coal phase out plans. 👍 𝗧𝗵𝗲 𝗱𝗿𝗮𝗳𝘁 𝗿𝗲𝗽𝗼𝗿𝘁 𝗮𝗹𝘀𝗼 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀 𝘄𝗲𝗹𝗰𝗼𝗺𝗲 𝗶𝗺𝗽𝗿𝗼𝘃𝗲𝗺𝗲𝗻𝘁𝘀 𝘀𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻𝗶𝗻𝗴 𝘁𝗵𝗲 𝗦𝗙𝗗𝗥 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸: • Disclosure of a common set of Principal Adverse Impact (PAI) indicators for all SFDR categories.  • Stronger criteria for the “ESG basics” category, requiring removal of the lower 20% of the investment universe based on sustainability-related ratings or values.  • Removal of the Climate-Transition/Paris-Aligned Benchmarks “safe harbour”, which risked creating an unlevel playing field between categorised products.  • Clearer engagement disclosures on a comply or explain basis for all categorised products.  • Disclaimer for non categorised products communicating on their integration of sustainability factors. ⚠️ 𝗗𝗲𝘀𝗽𝗶𝘁𝗲 𝘁𝗵𝗶𝘀, 𝘀𝗼𝗺𝗲 𝗸𝗲𝘆 𝗶𝘀𝘀𝘂𝗲𝘀 𝘀𝘁𝗶𝗹𝗹 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗯𝗲 𝗮𝗱𝗱𝗿𝗲𝘀𝘀𝗲𝗱 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗮𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗮𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁𝘀, 𝗶𝗻𝗰𝗹𝘂𝗱𝗶𝗻𝗴: • Establish criteria tailored to different asset classes and develop criteria for social investments.  • Re-instate the Do No Significant Harm (DSNH) principle for the “sustainable” category, and set minimum social and governance safeguards across categories.  • Maintain and streamline entity level disclosures, including AuMs categorised under SFDR and summaries of engagement, exclusion, and due diligence policies. 🌱 𝗘𝘂𝗿𝗼𝘀𝗶𝗳 𝗶𝘀 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝘁𝗼 𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗠𝗘𝗣 Gerben-Jan Gerbrandy 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗘𝗣 𝘀𝗵𝗮𝗱𝗼𝘄 𝗿𝗮𝗽𝗽𝗼𝗿𝘁𝗲𝘂𝗿𝘀 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝗼𝗻 𝘁𝗵𝗶𝘀 𝘀𝘁𝗿𝗼𝗻𝗴 𝗯𝗮𝘀𝗶𝘀. 📅 𝗡𝗲𝘅𝘁 𝘀𝘁𝗲𝗽𝘀: • 3 June: draft report presented in ECON committee of the European Parliament. • 4 June: deadline for tabling amendments.  • 15 July (tbc): ECON committee vote. 🔗Eurosif’s press release: https://lnkd.in/dDRWTXxR 🔗European Parliament draft report: https://lnkd.in/d9Djx7bh  🔗For more background, consult Eurosif’s position paper on the SFDR review: https://lnkd.in/eT-wQuUr