ACCA welcomes the opportunity to respond to the call for evidence from the European Commission (EC) on the revision of the Sustainable Finance Disclosure Regulation (SFDR).
This response has been informed through our policy positions, sustainability focused engagement across the EU and UK.
ACCA agrees with the objectives of the SFDR, it sets a high standard for financial market participants and:
- promotes increased transparency for investors on the sustainability practices and the ESG characteristics of investments;
- encourages greater accountability for asset managers; and
- further emphasises ESG integration in investment decision-making processes.
However, the nature of the regulation and the associated administrative costs of disclosure is hindering the sustainability practices of some firms. Therefore, ACCA welcomes the desire of the EC to simplify the sustainability reporting requirements and reduce the reporting burden for financial market participants by improving clarity, removing inconsistencies and addressing data-challenges. This is critical for effective implementation and to attract private funding to facilitate the transition a more sustainable future. Further, we encourage the EC to consider a transition-focused approach, create more flexibility and phase in the implementation.
To read our response in full, please download the consultation response document found on this page.
