The Joint Committee of the European Supervisory Authorities, including the European Insurance and Occupational Pensions Authority, published its fourth annual report on the extent of voluntary disclosure of principal adverse impacts (PAIs) under the Sustainable Finance Disclosure Regulation (SFDR), finding a steady improvement in the quality of PAI disclosures at both entity and product level. The review draws on a survey of National Competent Authorities and staff analysis of publicly available PAI statements from the asset management, insurance and occupational pension sectors, alongside a sample of financial products’ PAI disclosures. It notes that financial market participants are publishing more complete information to meet SFDR disclosure requirements, with larger multinational groups generally providing more detailed disclosures than smaller entities, which often blend general ESG or marketing information into SFDR reporting. The report also includes recommendations for National Competent Authorities to support supervisory work on PAI disclosures and for the European Commission to consider ahead of the forthcoming SFDR review.
European Insurance and Occupational Pensions Authority 2025-09-09
European Insurance and Occupational Pensions Authority and fellow ESAs publish annual report finding improved voluntary SFDR principal adverse impact disclosures
The Joint Committee of the European Supervisory Authorities, including the European Insurance and Occupational Pensions Authority, released its fourth annual report on voluntary disclosure of principal adverse impacts (PAIs) under the Sustainable Finance Disclosure Regulation (SFDR). The report highlights improvements in PAI disclosure quality, with larger multinational groups providing more detailed information than smaller entities. It also offers recommendations for National Competent Authorities and the European Commission for the upcoming SFDR review.