Sustainability: SFDR Reform: Tracking Tripartite Developments

Research evidence excerpt

Sustainability: SFDR Reform: Tracking Tripartite Developments

UpdateM Investor views

appear to

diverge from the

Largely in current tripartite

In addition to

support of the position. There

the

Commission's is growing

Commission's

General Purpose proposal with support for

proposal,

Sovereign possibility to recognising

require funds

Bonds do not allow A7 funds market-

investing in

count towards to invest a developed

Sovereign sovereign bonds

70% threshold limited amount sustainability

Bonds in any

for Transition (25pp or 15 pp) standards for

categories to do

(A7) and of the 70% sovereign

so in alignment

Sustainable (A9) threshold in issuers and for

of sustainability

categories. general-purpose allowing broader

objective or

public sector sovereign

strategy of the

bonds from EU exposure to

fund.

issuers. count towards

minimum

portfolio

thresholds.

Retain a set of

mandatory PAIs

The removal of

to allow for

Strong support entity-level PAI

PAI disclosure comparison

to have funds disclosures has

no longer between fund

disclose PAIs on been positively

required on a an alongside

a product level. received per our

entity-level. disclosure of

Principle Potentially, investor

though A9 and material

Adverse Impact funds will be feedback, with

A7 funds will voluntary PAIs.

(PAI) Indicators required to pick limited

need to identify Entity-level PAI

three indicators pushback on the

and disclose requirements to

from a list or introduction of

PAIs at product be removed as

pre-set for a product-level

level. soon as the

category. PAI disclosure

regulation

requirements.

comes into

force.

We anticipate

revisions to this

CTB tracking

requirement, as

funds qualify as

CTB exclusions

CTB and PAB A7 whereas PAB Not in favour of

are less

Safe Harbour tracking funds this proposal.

stringent than