The Sustainable Finance Disclosure Regulation (SFDR) stands as a core pillar of the European Green Deal’s Sustainable Finance Action Plan. This article will focus on the SFDR’s product-level disclosures, which form a key regulatory element of the SFDR and play a critical role in driving the regulation’s transparency aims.
The European Sustainability Reporting Standards (ESRS) are standards that define the rules of the Corporate Sustainability Reporting Directive (CSRD). They set the structure and disclosure requirements that companies, banks and insurance companies in scope will need to report on.
The EU Taxonomy already mandates banks to disclose the proportion of their total assets of exposures to EU Taxonomy-eligible economic activities. However, with the Green Asset Ratio (GAR) disclosures due in January 2024 for the financial year 2023, banks will need to step it up a notch.
