ESA Joint Committee · sfdr-46 Final

Considering that the reference to good governance in Article 8 of Regulation (EU) 2019/2088 only relates to 'companies', and that Article 9 of Regulation (EU) 2019/2088, via the definition of 'sustain

Regulation
SFDR
Answered
2022-05-17
Answer provided by
European Commission
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Question

Considering that the reference to good governance in Article 8 of Regulation (EU) 2019/2088 only relates to 'companies', and that Article 9 of Regulation (EU) 2019/2088, via the definition of 'sustainable investment' in Article 2(17) of Regulation (EU) 2019/2088, specifically relates to 'investee companies', can a financial product investing solely in government bonds while applying an ESG investment strategy be considered to fall under either Article 8 or Article 9 of Regulation (EU) 2019/2088?

Answer

The good governance practices referred to in Article 2, point (17), and Article 8(1), first subparagraph, of Regulation (EU) 2019/2088 relate to investee companies and companies respectively and do not apply to government bonds. Therefore, a financial product referred to in Article 8, paragraphs 1, 2 and 2a, of Regulation (EU) 2019/2088 investing only in government bonds does not need to apply the requirements related to good governance practices referred to in the previous sentence.
View original on ESA Joint Committee (EBA, ESMA, EIOPA) ↗

This Q&A is published by ESA Joint Committee (EBA, ESMA, EIOPA) and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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