In order to simplify and extend sustainability disclosures, ESMA and the other European Supervisory Authorities (ESAs) have proposed amendments

The proposed changes include expanding the list of universal social indicators for the disclosure of investment decisions' principal adverse impacts on the environment and society, refining the content and definitions of other indicators, and adding product disclosures regarding decarbonisation targets.

Additionally, the ESAs suggest technical revisions to the SFDR Delegated Regulation to improve disclosures on how sustainable investments do not harm the environment and society, simplify pre-contractual and periodic disclosure templates for financial products, and make other technical adjustments.

Moreover, the ESAs propose further technical revisions to the SFDR Delegated Regulation by improving the disclosures on how sustainable investments "do not significantly harm" the environment and society. Financial product disclosure templates should be simplified and other technical adjustments made regarding, for example, the treatment of derivatives, the definition of equivalent information, and provisions for financial products with underlying investment options should be made.

The ESAs received a mandate from the European Commission in April 2022 to review and revise the Regulatory Technical Standards laid down in the SFDR Delegated Regulation. The ESAs aim to deliver the Final Report under the mandate by the end of October 2023. 

Interested parties can provide feedback on the Consultation Paper until 4 July 2023 using the response form. The ESAs will hold a joint public hearing and targeted consumer testing during the consultation period and prepare a Final Report after considering the comments received, which they will submit to the European Commission.