The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) updated their joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation (SFDR). The statement includes a new timeline and expectations about the quantification of the product disclosures under Articles 5 and 6 of the Taxonomy Regulation and the use of estimates. The ESAs recommend the use of the time until the application date of 1 January 2023 to prepare for the application of the forthcoming Commission Delegated Regulation containing the regulatory technical standards (RTS) while also applying the relevant measures of SFDR and the Taxonomy Regulation according to the relevant application dates outlined in the supervisory statement. Supervisors will expect disclosure during the interim period of the proportion (as a percentage) of investments underlying the financial product that are taxonomy-aligned. Although estimates should not be used, financial market participants may rely on equivalent information on taxonomy-alignment obtained directly from investee companies or from third party providers where information is not readily available from investee companies’ public disclosures.

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