The European Commission Delegated Regulation amending Delegated Regulation (EU) No 231/2013 as regards the Sustainability Risks and Sustainability Factors to be taken into account by Alternative Investment Fund Managers.

The European Commission (‘EC’) introduced a delegated regulation to clarify Alternative Investment Fund Manager’s obligation to integrate sustainability risks and considerations into the investment, advisory and disclosure processes in a consistent manner across sectors. The regulation is based on technical advice from European Securities and Markets Authority (ESMA) and reinforces the EC’s broader initiatives on sustainable development including: Sustainability-Related Disclosures in the Financial Services Sector; Regulation on the EU Climate Transition Benchmarks; EU Paris-aligned Benchmarks and Sustainability-Related Disclosures for Benchmarks; and The EU Taxonomy for Sustainable Activities.