01

Disclosure (SFDR)

  • Product classification based on the level of ESG integration

  • Sustainability risk integration as a minimum standard for all products

  • Principal adverse impact of investment decisions

  • ESG disclosures at multiple levels to prevent greenwashing (pre-contractual, website and periodic reporting)

02

Taxonomy

  • Classification framework for environmentally sustainable activities

  • Report the extent to which a financial product aligns with the Taxonomy

  • Financial products that do not promote environmental characteristics must disclose the following statement: "The investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities”

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03

UCITS & AIFMD

The integration of sustainability risk within UCITS & AIFMD will impact management companies / AIFMs at 4 levels:

  • Organizational requirements​

  • Operating conditions 

  • Risk management

  • Conflict of interest

 
 
 
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05

Corporate Sustainability Reporting Directive (CSDR)

  • Ensure that investors have access to adequate non-financial information from companies to be able to take account of sustainability-related risks, opportunities and impacts in their investment decisions.

  • Ensuring transparency on ESG factors up to the investment chain from portfolio company to investment manager to asset owner

04

MiFID II

The integration of sustainability risk in MiFID II will have the following impacts:

  • ESG preferences in the investment objectives (suitability and appropriateness)

  • Client reporting (ESG factors’ consideration in the selection process when providing advice)

  • Include ESG considerations in the description on nature and risk of financial instrument

  • European MiFID Template (EMT) updated to integrate ESG classification

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