— SFDR REPORTING SOLUTION —
GRESB is introducing an SFDR reporting solution to help GRESB participants to meet their regulatory disclosure obligations. At the forefront of ESG reporting, GRESB is well placed to bridge the identified gaps and provide a simple way for the industry to meet their regulatory obligations with minimum reporting burden.
EU Sustainable Finance Disclosure Regulation (SFDR)
The upcoming EU regulations are a significant development for the real assets sector. These regulations will require a step change from the industry in terms of transparency as it pertains to environmental, social and governance criteria and the need for more aligned, comprehensive and high quality ESG reporting. GRESB is committed to helping its members address these regulations.
The European Union’s Sustainable Finance Disclosure Regulation (SFDR) applies in stages from 10 March 2021 and will impose new transparency obligations and periodic reporting requirements on Financial Market Participants (FMP’s) at both a product and entity level.
SFDR Reporting Implications
The implications of the new SFDR regulations are industrywide; disclosure will be required, on an entity and product basis, from all firms that market funds into the EU, while firms that include ESG characteristics into their investment process will be required to incorporate additional detailed product level ESG disclosures.
The new SFDR legislation will require reporting on the following three factors;
- Sustainability risk: Asset managers will be required to assess sustainability risk in a systematic manner, integrating sustainability risks into investment decision making.
- Principle Adverse Impacts (PAI): Asset managers will be required to report on their due diligence policies regarding PAI.
- ESG Approach positioning: Asset managers will be required to report on underlying ESG approach and impact