As of 1 January 2022, financial market participants that make available certain Article 8/9
products shall include information about the proportion of Taxonomy-aligned
investments as a percentage of a

Question

As of 1 January 2022, financial market participants that make available certain Article 8/9
products shall include information about the proportion of Taxonomy-aligned
investments as a percentage of all investments in the pre-contractual, website
information and periodic reporting (Article 5 and 6 TR). At the same time, the full
reporting requirement under CSRD will not be applicable for non-financial companies
until 1 January 2023. This means that before 2023, there will be no reliable data or
calculation model available. Moreover, initial evidence shows that estimated data from
data suppliers on Taxonomy-alignment of investment portfolios differ greatly between
different suppliers, making it inappropriate/dubious to present such data to consumers.
How are FMP supposed to fulfil the Taxonomy-alignment reporting requirements under
the SFDR and the Delegated Regulation, respectively, given the lack of data? From a
consumer’s perspective, the least misleading alternative would be to report ‘data not
available’ coupled with a brief explanatory text.
Furthermore, in case a financial market participant makes available a product that is
considered Article 8 SFDR and Article 6 TR, the disclosure about the percentage of
Taxonomy-alignment needs to be made by end of year in the periodic information. How
should this be possible if companies are only required to disclose their Taxonomy-
aligned activities at a later stage?

ESA Joint Committee (EBA, ESMA, EIOPA) · Accepted Answer

As stated in Article 17(2)(b) and Recital (35) of the Delegated Regulation, when Taxonomy-
alignment of investments is not available from the public disclosures of investee companies, then
the use of ‘equivalent information’ from investee companies or third-party providers is permitted.
As clarified by the Commission in the answers provided in May 2022, Recital 21 to Regulation (EU)
2020/852 refers to exceptional cases where financial market participants cannot reasonably obtain
the relevant information to reliably determine the alignment with the technical screening criteria
established pursuant to that Regulation as far as economic activities carried out by undertakings
that are not subject to that Regulation are concerned. In such exceptional cases and only for those
economic activities for which complete, reliable and timely information could not be obtained,
financial market participants are allowed to make complementary assessments and estimates on
the basis of information from other sources. Assessments and estimates should only compensate
for limited and specific parts of the desired data elements and produce a prudent outcome.
Financial market participants should clearly explain the basis for their conclusions as well as the
reasons for having to make such complementary assessments and estimates for the purposes of
disclosure to end investors.
Once the reporting prescribed by Regulation (EU) 2021/2178 on the Taxonomy-aligned activities
of non-financial undertakings (from January 2023) and financial undertakings (from January 2024)
starts, the disclosure of Taxonomy-aligned investments is expected to become more
straightforward.

As of 1 January 2022, financial market participants that make available certain Article 8/9 products shall include information about the proportion of Taxonomy-aligned investments as a percentage of a

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