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Sustainable Finance Disclosure Regulation In force Unlisted

Overview

Jurisdiction
European Union
Topic
-
Instrument type
Regulation
Reference number
2019/2088
Valid from
2021-03-10
Valid to
0000-01-01
Modified date
2026-08-13
Listed at
Unlisted draft
Withdrawn at
-
Description
Harmonises transparency and disclosure requirements for financial market participants and financial advisers regarding the integration of sustainability risks, consideration of adverse sustainability impacts, and the promotion of environmental or social characteristics and sustainable investments.

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Sources

Source URL Crawler Publish date
https://publications.europa.eu/resource/celex/32019R2088 EU Regulations 2019-11-27

Logs

Type Status Started at Finished at
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Rule sets

Label Effective
Covered financial market participants and financial advisers 2021-03-10 — 9999-12-31
Applies from milestone:
Application Start (2021-03-10)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “insurance undertaking providing IBIPs” “investment firm providing portfolio management” “IORP” “pension product manufacturer” “AIFM” “PEPP provider” “qualifying venture capital fund manager” “qualifying social entrepreneurship fund manager” “UCITS management company” “credit institution providing portfolio management” “insurance undertaking providing insurance advice” “credit institution providing investment advice” “AIFM providing investment advice” “UCITS management company providing investment advice” “insurance intermediary providing insurance advice”
Insurance intermediaries and investment firms meeting the employee threshold 2021-03-10 — 9999-12-31
Applies from milestone:
Application Start (2021-03-10)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “insurance intermediary providing insurance advice with regard to IBIPs” “investment firm providing investment advice”
  • Employee count >= 3 employees
Optionally covered small insurance intermediaries and investment firms 2021-03-10 — 9999-12-31
Applies from milestone:
Application Start (2021-03-10)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “insurance intermediary providing insurance advice with regard to IBIPs” “investment firm providing investment advice”
  • Employee count <= 2 employees

Questions this regulation asks

Attributes only this regulation asks about — criteria no general attribute expresses. A company answers each once.

This regulation asks no questions of its own — every condition uses a general attribute.

Obligations

Title Kind Rule set
Publication of sustainability risk policy Reporting -
Description:
Financial market participants must publish on their websites information about their policies for integrating sustainability risks into their investment decision-making process.
Frequency:
Continuous
Check frequency:
-
Products/Services:
-
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 3(1)
Source excerpt:
Financial market participants shall publish on their websites information about their policies on the integration of sustainability risks in their investment decision-making process.
Publication of advice policy Reporting -
Description:
Financial advisers must publish on their websites information about their policies for integrating sustainability risks into their investment or insurance advice.
Frequency:
Continuous
Check frequency:
-
Products/Services:
-
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 3(2)
Source excerpt:
Financial advisers shall publish on their websites information about their policies on the integration of sustainability risks in their investment advice or insurance advice.
Due diligence statement on adverse impacts Due Diligence -
Description:
Financial market participants must publish and maintain on their websites either a statement on due diligence policies for principal adverse impacts or clear reasons for not considering those impacts.
Frequency:
Continuous
Check frequency:
-
Products/Services:
-
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 4(1)(a)–(b)
Source excerpt:
Financial market participants shall publish and maintain on their websites: ... (a) where they consider principal adverse impacts of investment decisions on sustainability factors, a statement on due diligence policies with respect to those impacts, taking due account of their size, the nature and scale of their activities and the types of financial products they make available; or (b) where they do not consider adverse impacts of investment decisions on sustainability factors, clear reasons for why they do not do so, including, where relevant, information as to whether and when they intend to consider such adverse impacts.
Content of due diligence statement Reporting -
Description:
Financial market participants must include information on policies, impacts, applicable engagement policies, and relevant conduct codes and standards in the due diligence statement.
Frequency:
Continuous
Check frequency:
-
Products/Services:
-
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 4(2)(a)–(d)
Source excerpt:
Financial market participants shall include in the information provided in accordance with point (a) of paragraph 1 at least the following: ... (a) information about their policies on the identification and prioritisation of principal adverse sustainability impacts and indicators; (b) a description of the principal adverse sustainability impacts and of any actions in relation thereto taken or, where relevant, planned; (c) brief summaries of engagement policies in accordance with Article 3g of Directive 2007/36/EC, where applicable; (d) a reference to their adherence to responsible business conduct codes and internationally recognised standards for due diligence and reporting and, where relevant, the degree of their alignment with the objectives of the Paris Agreement.
Advice disclosures on adverse impacts Reporting -
Description:
Financial advisers must publish and maintain information on whether they consider principal adverse impacts in their investment or insurance advice, or state why they do not consider them.
Frequency:
Continuous
Check frequency:
-
Products/Services:
-
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 4(5)(a)–(b)
Source excerpt:
Financial advisers shall publish and maintain: ... (a) information as to whether, taking due account of their size, the nature and scale of their activities and the types of financial products they advise on, they consider in their investment advice or insurance advice the principal adverse impacts on sustainability factors; or (b) information as to why they do not to consider adverse impacts of investment decisions on sustainability factors in their investment advice or insurance advice, and, where relevant, including information as to whether and when they intend to consider such adverse impacts.
Sustainability risks in remuneration policies Governance -
Description:
Financial market participants and financial advisers must include in their remuneration policies information on how those policies are consistent with the integration of sustainability risks and publish that information on their websites.
Frequency:
Continuous
Check frequency:
-
Products/Services:
-
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 5(1)
Source excerpt:
Financial market participants and financial advisers shall include in their remuneration policies information on how those policies are consistent with the integration of sustainability risks, and shall publish that information on their websites.
Pre-contractual sustainability risk disclosures Reporting -
Description:
Financial market participants must describe in pre-contractual disclosures how sustainability risks are integrated into investment decisions and their likely impact on returns; if deemed irrelevant, they must clearly explain why.
Frequency:
Event-triggered
Check frequency:
-
Products/Services:
Financial products made available by financial market participants
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 6(1)
Source excerpt:
Financial market participants shall include descriptions of the following in pre‐contractual disclosures: (a) the manner in which sustainability risks are integrated into their investment decisions; and (b) the results of the assessment of the likely impacts of sustainability risks on the returns of the financial products they make available. Where financial market participants deem sustainability risks not to be relevant, the descriptions referred to in the first subparagraph shall include a clear and concise explanation of the reasons therefor.
Pre-contractual sustainability risk disclosures in advice Reporting -
Description:
Financial advisers must describe in pre-contractual disclosures how sustainability risks are integrated into advice and their likely impact on returns; if deemed irrelevant, they must clearly explain why.
Frequency:
Event-triggered
Check frequency:
-
Products/Services:
Financial products on which financial advisers provide investment or insurance advice
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 6(2)
Source excerpt:
Financial advisers shall include descriptions of the following in pre‐contractual disclosures: (a) the manner in which sustainability risks are integrated into their investment or insurance advice; and (b) the result of the assessment of the likely impacts of sustainability risks on the returns of the financial products they advise on. Where financial advisers deem sustainability risks not to be relevant, the descriptions referred to in the first subparagraph shall include a clear and concise explanation of the reasons therefor.
Pre-contractual disclosures on environmental or social characteristics Reporting -
Description:
Financial market participants must disclose pre-contractually how environmental or social characteristics are met and, where applicable, whether and how the reference index is consistent with those characteristics.
Frequency:
Event-triggered
Check frequency:
-
Products/Services:
Financial products promoting environmental or social characteristics
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 8(1)(a)–(b)
Source excerpt:
Where a financial product promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices, the information to be disclosed pursuant to Article 6(1) and (3) shall include the following: (a) information on how those characteristics are met; (b) if an index has been designated as a reference benchmark, information on whether and how this index is consistent with those characteristics.
Disclosures on sustainable investment objectives Reporting -
Description:
Financial market participants must explain pre-contractually how a sustainable investment objective is to be attained and, where relevant, how a reference index or carbon-emissions-reduction objective is aligned with it.
Frequency:
Event-triggered
Check frequency:
-
Products/Services:
Financial products with a sustainable investment or carbon-emissions-reduction objective
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 9(2)
Source excerpt:
Where a financial product has sustainable investment as its objective and no index has been designated as a reference benchmark, the information to be disclosed pursuant to Article 6(1) and (3) shall include an explanation on how that objective is to be attained.
Website disclosures for sustainable financial products Reporting -
Description:
Financial market participants must publish and maintain on their websites information on the characteristics or sustainable investment objective, methodologies used, information under Articles 8 and 9, and periodic reports.
Frequency:
Continuous
Check frequency:
-
Products/Services:
Financial products referred to in Article 8(1) and Article 9(1)–(3)
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 10(1)
Source excerpt:
Financial market participants shall publish and maintain on their websites the following information for each financial product referred to in Article 8(1) and Article 9(1), (2) and (3): (a) a description of the environmental or social characteristics or the sustainable investment objective; (b) information on the methodologies used to assess, measure and monitor the environmental or social characteristics or the impact of the sustainable investments selected for the financial product, including its data sources, screening criteria for the underlying assets and the relevant sustainability indicators used to measure the environmental or social characteristics or the overall sustainable impact of the financial product; (c) the information referred to in Articles 8 and 9; (d) the information referred to in Article 11.
Sustainability disclosures in periodic reports Reporting -
Description:
Financial market participants must disclose in periodic reports the extent to which environmental or social characteristics are met or the sustainability-related impact using relevant sustainability indicators.
Frequency:
Annual
Check frequency:
-
Products/Services:
Financial products referred to in Article 8(1) and Article 9(1)–(3)
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 11(1)(a)–(b)
Source excerpt:
Where financial market participants make available a financial product as referred to in Article 8(1) or in Article 9(1), (2) or (3), they shall include a description of the following in periodic reports: (a) for a financial product as referred to in Article 8(1), the extent to which environmental or social characteristics are met; (b) for a financial product as referred to in Article 9(1), (2) or (3): (i) the overall sustainability‐related impact of the financial product by means of relevant sustainability indicators; or (ii) where an index has been designated as a reference benchmark, a comparison between the overall sustainability‐related impact of the financial product with the impacts of the designated index and of a broad market index through sustainability indicators.
Updating published information Record Keeping -
Description:
Financial market participants and financial advisers must keep published information up to date and publish a clear explanation of any amendment on the same website.
Frequency:
Continuous
Check frequency:
-
Products/Services:
-
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 12(1)–(2)
Source excerpt:
Financial market participants shall ensure that any information published in accordance with Article 3, 5 or 10 is kept up to date. Where a financial market participant amends such information, a clear explanation of such amendment shall be published on the same website. Paragraph 1 shall apply mutatis mutandis to financial advisers with regard to any information published in accordance with Articles 3 and 5.
Consistent marketing communications Other -
Description:
Financial market participants and financial advisers must ensure that their marketing communications do not contradict information disclosed under this Regulation.
Frequency:
Continuous
Check frequency:
-
Products/Services:
-
Checking responsibility:
-
Check method:
-
Rule set:
-
Source reference:
Article 13(1)
Source excerpt:
Financial market participants and financial advisers shall ensure that their marketing communications do not contradict the information disclosed pursuant to this Regulation.

Measures

No measures.

Penalties

No penalties.

Milestones

Date Type Description
2019-12-29 Application Start Start of application of specified provisions on regulatory technical standards and marketing communications.
Source reference:
Article 20(3)
Source excerpt:
By way of derogation from paragraph 2 of this Article, Article 4(6) and (7), Article 8(3), Article 9(5), Article 10(2), Article 11(4), and Article 13(2) shall apply from 29 December 2019
2021-03-10 Application Start Start of general application of the Regulation.
Source reference:
Article 20(2)
Source excerpt:
This Regulation shall apply from 10 March 2021.
2021-06-30 Application Start Start of the specific duty to publish a statement on principal adverse sustainability impacts for companies exceeding 500 employees.
Source reference:
Article 4(3)
Source excerpt:
from 30 June 2021, financial market participants exceeding on their balance sheet dates the criterion of the average number of 500 employees during the financial year shall publish and maintain on their websites a statement on their due diligence policies with respect to the principal adverse impacts of investment decisions on sustainability factors.
2021-06-30 Application Start Start of the specific duty to publish a statement on principal adverse sustainability impacts for parent companies of large groups exceeding 500 employees on a consolidated basis.
Source reference:
Article 4(4)
Source excerpt:
from 30 June 2021, financial market participants which are parent undertakings of a large group as referred to in Article 3(7) of Directive 2013/34/EU exceeding on the balance sheet date of the group, on a consolidated basis, the criterion of the average number of 500 employees during the financial year shall publish and maintain on their websites a statement on their due diligence policies with respect to the principal adverse impacts of investment decisions on sustainability factors.
2022-01-01 Application Start Start of application of the duties concerning sustainability-related disclosures in periodic reports.
Source reference:
Article 20(3)
Source excerpt:
Article 11(1) to (3) shall apply from 1 January 2022.
2022-12-30 Application Start Deadline for product-level disclosures concerning principal adverse sustainability impacts.
Source reference:
Article 7(1)
Source excerpt:
By 30 December 2022, for each financial product where a financial market participant applies point (a) of Article 4(1) or Article 4(3) or (4), the disclosures referred to in Article 6(3) shall include the following:

Linked regulations

Type Regulation
Other Directive 2009/65/EC
Other Directive 2009/138/EC
Other Directive 2011/61/EU
Other Directive 2014/65/EU
Other Directive (EU) 2016/97
Other Directive (EU) 2016/2341
Other Regulation (EU) No 345/2013
Other Regulation (EU) No 346/2013
Other Regulation (EU) 2015/760
Other Regulation (EU) 2019/1238
Cites Regulation (EU) No 1093/2010
Cites Regulation (EU) No 1094/2010
Cites Regulation (EU) No 1095/2010
Cites Directive 2013/34/EU
Cites Regulation (EC) No 883/2004
Cites Regulation (EC) No 987/2009
Cites Directive 2007/36/EC
Cites Directive 2011/61/EU
Cites Regulation (EU) 2016/1011
Cites Regulation (EC) No 883/2004
Cites Regulation (EC) No 987/2009