The Joint Committee of the European Supervisory Authorities, including the European Securities and Markets Authority, published its fourth annual report on the extent of voluntary principal adverse impact (PAI) disclosures under the Sustainable Finance Disclosure Regulation (SFDR), identifying a steady improvement in disclosure quality at both entity and product level. The assessment is based on a survey of National Competent Authorities and staff analysis of publicly available PAI statements in the asset management, insurance and occupational pension sectors, alongside a sample review of financial products’ PAI disclosures. The report points to financial market participants publishing more complete information in line with SFDR requirements, while noting that larger multinational groups tend to provide more detailed disclosures and smaller entities often blend SFDR content with more general ESG or marketing information. It also sets out recommendations for National Competent Authorities to support supervision of PAI disclosures and for the European Commission to consider ahead of the forthcoming SFDR review.
European Securities and Markets Authority 2025-09-09
European Securities and Markets Authority and other ESAs find improving voluntary SFDR principal adverse impact disclosures
The Joint Committee of the European Supervisory Authorities, including the European Securities and Markets Authority, released its fourth annual report on voluntary principal adverse impact disclosures under the Sustainable Finance Disclosure Regulation. The report highlights improved disclosure quality, with larger multinational groups providing more detailed information, while smaller entities often mix SFDR content with general ESG or marketing information. Recommendations are made for National Competent Authorities and the European Commission to enhance supervision and inform the upcoming SFDR review.