On March 10, 2021, “Regulation (EU) 2019/2088 of the European Parliament and of the Council of November 27, 2019 on sustainability‐related disclosures in the financial services sector” (as amended and supplemented by the Taxonomy Regulation ((EU) 2020/852, June 18, 2020 on the establishment of a framework to facilitate sustainable investment) (the SFDR) entered into force in respect of the so-called “Level-1 disclosures”. In summary, this means that certain financial market participants are now required to make mandatory environmental, social, and governance (ESG) disclosures. This GT Alert summarizes the scope of this new requirement.
The EU Sustainable Finance Disclosure Regulation Enters into Force
