The EU Commission has opened two consultation periods on the implementation of the Sustainable Finance Disclosure Regulation (SFDR) which polices how financial institutions communicate sustainability information to shareholders.
Announced in a September 14 press release, the two consultation periods – one public and one targeted – will run until December 15.
The public consultation seeks to gather opinion from a broad range of stakeholders such as interest groups, member associations and representative bodies which have a general knowledge of the SFDR, while the targeted period is aimed at public bodies and stakeholders who are more familiar with the SFDR and the EU’s sustainable finance framework as a whole.
The SFDR is designed to help investors make informed decisions when investing into companies and projects supporting sustainability objectives, and sets out to enable a proper assessment of how sustainability risks are integrated into the investment decision making process.
The consultation period is the next step in the comprehensive assessment of the framework to analyze any potential shortcomings, with a focus on “legal certainty, the usability of the regulation and its ability to play its part in tackling greenwashing.”
“The open and targeted public consultations are an important part of this assessment. They will be complemented by workshops and roundtables, enabling stakeholders to submit further input,” the EU Commission added.