Delegated Regulation (SFDR RTS) supplementing Regulation (EU) 2019/2088

Commission Delegated Regulation (EU) 2022/1288 of April 6, 2022, supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council as regards regulatory technical regulations, by specifying the details of the content and presentation of information in relation to the "do not significantly disrupt" principle, by specifying the content, methodologies and presentation of information in relation to sustainability indicators and adverse impacts on sustainability, as well as the content and presentation of information in relation to the promotion of environmental or social characteristics and sustainable investment objectives in pre-contractual documents, on websites and in regular reports (Text with EEA relevance)

This regulation enters into force on the twentieth day after its publication in the Official Journal of the European Union. This regulation applies from 1 January 2023.

Commission Regulation (EU) 2022/1288 focuses on improving transparency in the field of sustainability in the financial services sector. The goal is provide end investors with clear, concise and understandable informationto be able to do informed investment decisions. The Regulation supplements and specifies the rules set out in Regulation (EU) 2019/2088 of the European Parliament and of the Council.

The Regulation addresses the following key aspects of sustainability disclosure:

• "Do not significantly violate the principle": sets out details of the content and presentation of information in relation to this policy.
• Sustainability indicators: specifies the content, methodologies and presentation of information regarding sustainability indicators and adverse impacts on sustainability.
• Pre-contractual documents: Defines the content and presentation of information on the promotion of environmental or social properties and sustainable investment goals in pre-contractual documents.
• Websites: Establishes rules for publishing information on the websites of financial market participants.

The regulation introduces the obligation for financial market participants to publish information on the main adverse effects their investment decisions on sustainability factors. This information must be published on the website in a special section entitled "Statement on the main adverse effects of investment decisions on sustainability factors". The statement must be published every year until June 30, while it refers to the period from January 1 to December 31 of the previous year.

Regulation further adjusts the presentation of information about:

• Financial products promoting environmental or social properties: Determines the format and content of pre-contractual information as well as information published in regular reports.
• Financial products whose goal is a sustainable investment: Establishes the format and content of pre-contractual information, as well as information published on websites and in regular reports.
• Financial products with investment options: Defines the rules for the publication of information about products that offer investors different investment options, while also promoting environmental or social characteristics, or which aim at sustainable investment.

The regulation provides detailed rules for calculation and presentation of indicators of the main adverse impacts on sustainability factors. These indicators are divided into three categories:

• Indicators applicable to investments in companies
• Indicators applicable to investments in states and multinational companies
• Indicators applicable to investments in real estate

The regulation also emphasizes the importance of engagement policies, which should be introduced by financial market participants with the aim of reduce identified major adverse impacts on sustainability factors.

An important part of the regulation is also the requirement to publish information on the extent to which investments are made in environmentally sustainable economic activities in accordance with the EU taxonomy set out in Regulation (EU) 2020/852. Financial market participants must also provide information on methods and data sources used to measure and monitor the sustainability of their investments.

The Regulation entered into force on the 20th day after its publication in the Official Journal of the European Union and it applies from 1 January 2023. His goal is increase transparency and accountability in the area of sustainability of financial investments and help investors make more informed decisions.