ESA Joint Committee · sfdr-90 Final

Article 17 of the Delegated Regulation lays down the rules to compute the Taxonomy- alignment of a financial product. How should a financial product report on debt instruments which are not debt secur

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

Article 17 of the Delegated Regulation lays down the rules to compute the Taxonomy- alignment of a financial product. How should a financial product report on debt instruments which are not debt securities, such as the loans it originated, bearing in mind that: - when it comes to investments in investee companies, the Delegated Regulation refers to “debt securities and equities” only; and - when it comes to investments in real estate assets and infrastructures, the Delegated Regulation refers to “investments”?

Answer

While the Delegated Regulation does not specify the potential contribution of loans and advances as defined in Annex II to the ECB BSI Regulation to the numerator of the calculation of the degree to which investments are in environmentally sustainable economic activities, investments in such instruments should be considered analogous to “debt securities”.
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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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