The Financial Conduct Authority (FCA) has delayed its alternative consultation on the EU’s Sustainable Finance Disclosures Regulation (SFDR) until Autumn 2022.
A consultation was originally scheduled to take place in the second quarter of 2022. The reason given for the pushback is to ensure “stakeholders have time to consider and take account of other international policy initiatives”.
A discussion paper has already been released, however, setting out a roadmap for how the UK government will meet its ambitions on climate change and green finance.
With green financing and sustainable investing rapidly rising up the agenda across financial services, the need for disclosure is paramount to ensure targets are both set and achieved.
The EU adopted the SFDR regulations on April 6, 2022, requiring financial market participants to provide detailed information about how they are tackling and reducing any possible negative impacts their investments may have on the environment and society in general.
The overall intent of the SFDR is to ensure greenwashing is prevented, that investors can make well-informed decisions on sustainability initiatives and that the financial system’s transition towards a more sustainable economy is supported.
SFDR requirements will be subject to scrutiny by the European Parliament and the European Council and will apply from 1 January 2023.
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