On 25 July 2022, Commission Delegated Regulation () (“SFDR RTS”) which supplements the Sustainable Finance Disclosure Regulation ((EU) 2019/2088) ("SFDR") and Regulation on the establishment of a framework to facilitate sustainable investment (EU/2020/852) (“Taxonomy Regulation”) with regard to regulatory technical standards have finally been published after being subject to continued delay.
The SFDR RTS specify the details of the content, methodologies and presentation of information relating to sustainability indicators and adverse sustainability impacts, the principle of "do no significant harm", and the promotion of environmental or social characteristics and sustainable investment objectives in pre-contractual documents, on websites and in periodic reports.
The SFDR RTS apply to financial market participants when disclosing sustainability-related information under the SFDR and Taxonomy Regulation. They also include the mandatory disclosure templates which specify the exact content, methodology and presentation of the information to be disclosed to investors.
The SFDR RTS will apply from 1 January 2023 to financial market participants, which includes non-European fund managers that are marketing their funds in the EEA via the National Private Placement Regime ("NPPR").