ESA Joint Committee · sfdr-56 Final

Are financial market participants allowed to define their own substantial contribution criteria for socially sustainable investments? Can a single financial market participant apply different interpre

Name: Are financial market participants allowed to define their own substantial contribution criteria for socially sustainable investments? Can a single financial market participant apply different interpre: ESA Joint Committee Q&A — EU Financial Regulatory Q&A
Creator: ESA Joint Committee (EBA, ESMA, EIOPA)
License: https://creativecommons.org/licenses/by/4.0/

Regulation: SFDR
Answered: 2022-11-17
Answer provided by: ESAs (EBA, ESMA, EIOPA)

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Joint Committee Q&As are published in consolidated PDF documents without explicit question/answer delimiters. Section boundaries below are identified automatically and may occasionally be imprecise.

Question

Are financial market participants allowed to define their own substantial contribution criteria for socially sustainable investments? Can a single financial market participant apply different interpretations of “sustainable investments” to different financial products that it offers?

Answer

It is possible for financial market participants to create their own framework for their financial products as long as they adhere to the letter of Article 2(17) SFDR. Financial market participant should not, however, interpret Article 2(17) SFDR differently for different financial products that it makes available.

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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