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Improvements to the SFDR proposed by European Supervisory Authorities assessed

An electricity pylon stands near wind turbines spinning at a wind farm on May 02, 2024 near Altentreptow, Germany.
Photo: Sean Gallup/Getty Images

ESAs propose improvements to the “complex and difficult to comprehend” SFDR and suggest introducing categories and/or sustainability indicators.

On June 18, 2024, the three European Supervisory Authorities (EBA, EIOPA, and ESMA, collectively known as the ESAs) published an opinion (the Opinion) on the evaluation of the Sustainable Finance Disclosure Regulation (SFDR). This Opinion was initiated by the ESAs themselves and was addressed to the European Commission.

Through two

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