The Joint Committee of the European Supervisory Authorities, comprising the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority, published its fourth annual report on voluntary principal adverse impact (PAI) disclosures under the Sustainable Finance Disclosure Regulation (SFDR), finding a steady improvement in disclosure quality at both entity and product level. The review is based 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. Financial market participants are publishing more complete information in line with SFDR disclosure requirements, with larger multinational groups generally providing more detailed disclosures, while smaller entities often combine general ESG or marketing information with SFDR disclosures; supervisors also observed some uptake of good practices highlighted in previous reports. The report includes recommendations for National Competent Authorities to support supervision of PAI disclosures and points for the European Commission to consider ahead of its forthcoming SFDR review.
European Banking Authority 2025-09-09
European Banking Authority-led Joint Committee of the European Supervisory Authorities reports improved voluntary SFDR principal adverse impact disclosures
The Joint Committee of the European Supervisory Authorities released its fourth annual report on voluntary principal adverse impact disclosures under the Sustainable Finance Disclosure Regulation, noting improved disclosure quality. The report highlights that larger multinational groups provide more detailed disclosures, while smaller entities often mix general ESG or marketing information with SFDR disclosures. Recommendations for National Competent Authorities and considerations for the European Commission's upcoming SFDR review are included.