European Supervisory Authorities Consult on Taxonomy–related Product Disclosures

The European Insurance and Occupational Pensions Authority, European Securities and Markets Authority and European Banking Authority issued a Consultation Paper seeking input on draft Regulatory Technical Standards (RTS) regarding disclosures of financial products investing in economic activities that contribute to an environmental investment objective. The draft RTS would facilitate disclosures to end investors regarding the investments of financial products in environmentally sustainable activities. It would create a single rulebook for sustainability disclosures under the regulation on sustainability-related disclosures in the financial services sector (SFDR) and the Taxonomy Regulation that includes taxonomy-related disclosures about which environmental objectives the investments of the product contribute to, and information about how, and to what extent, the activities funded by the product are Taxonomy-aligned.