Regulatory Alerts2024-07-24
ESMA Opinion on Sustainable Investments: Facilitating the Investor Journey
ESMA issued this opinion to propose a holistic, long-term evolution of the EU Sustainable Finance Framework that prioritizes investor usability and coherence across the Sustainable Investment Value Chain. The regulator recommends establishing the EU Taxonomy as the sole common reference point for sustainability assessment while phasing out the current SFDR definition of sustainable investments to enhance comparability and mitigate greenwashing. Additionally, ESMA advocates for simplified minimum sustainability disclosures for all financial products, the introduction of a legal definition for transition investments, and the use of consumer testing to ensure policy solutions effectively support retail investors.
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