The European Supervisory Authorities (ESAs) released their Final Report proposing amendments to the Sustainable Finance Disclosure Regulation (SFDR). The changes include mandatory reporting on social factors like tobacco exposure and inadequate wages, as well as new disclosures for financial products on greenhouse gas emission reduction targets. The SFDR aims to establish transparent rules for financial market participants in integrating sustainability risks and providing information on adverse sustainability impacts. The European Commission, following the report, has three months to decide on endorsing the proposed Regulatory Technical Standards (RTS). The potential application of the RTS is separate from the ongoing Commission review of the SFDR announced in September 2023.

Source: ESGToday