ESA Joint Committee · sfdr-92 Final

How should FMPs measure the positive contribution for sustainable investments and can they use the KPIs for taxonomy-alignment (Turnover, CapEx, OpEx)?

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

How should FMPs measure the positive contribution for sustainable investments and can they use the KPIs for taxonomy-alignment (Turnover, CapEx, OpEx)?

Answer

There are many ways to measure the sustainable investments of a portfolio. Neither SFDR nor the Delegated Regulation provide for a specific methodology. However, for Taxonomy-aligned investments the KPIs available to measure sustainable investments are turnover, CapEx and OpEx. While turnover gives a backward-looking view on the activities of a company that are already Taxonomy-aligned; CapEx provides a forward-looking view of companies’ plans to transform or expand their business activities and the efforts they are making to green their activities and/or assets. Furthermore, CapEx investments can include those that expand an already aligned activity or asset, or that render them Taxonomy-aligned. These metrics used for calculating the Taxonomy-aligned share of the portfolio could be equally applicable to measuring the proportion of sustainable investments.
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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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