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Reducing mandatory requirements for corporate ESG reporting would deprive asset managers of data needed for sustainable investment disclosures

Sustainability reporting (NFRD)
07 July 2023 | Press Release
Sustainability reporting (NFRD)
Flag of the EU floating on the background of the European Commission

EFAMA today has released its position paper and joined together with the European Sustainable Investment Forum (Eurosif), the Principles for Responsible Investment (PRI), the Institutional Investors Group on Climate Change (IIGCC) and over 90 investors and financial market participants, to call on the European Commission to uphold the integrity and ambition of the first set of European Sustainability Reporting Standards (ESRS).


Reducing the level of corporate ESG reporting requirements within the ESRS would create a misalignment with the Sustainable Finance Disclosure Regulation (SFDR). Introducing materiality self-assessment and more voluntary disclosures would reduce the accuracy of sustainability reporting and leave asset managers without the ESG data needed for their SFDR disclosures. These data gaps would only create more confusion for end-investors and hurt the EU’s sustainable finance ambitions.


The following policy recommendations would help guarantee investors have access to the most complete set of sustainability data:

  1. Adjust materiality assessment requirements to eliminate data gaps for SFDR obligations
  2. Align the phase-in timings of reporting within SFDR and CSRD, as they are inextricably linked
  3. Ensure maximum interoperability of ESRS with international ISSB and GRI reporting standards
  4. Give more specific thought to requirements for transition plan reporting


Chiara Chiodo, Regulatory Policy Advisor at EFAMA, commented:The European Commission’s current plans for corporate reporting create inconsistencies with the regulation for sustainable finance disclosures. This would introduce challenges for effective sustainability reporting by banks and fund managers, and undermine investor confidence. Removing materiality assessments is crucial for accurate and transparent reporting, reducing reliance on ESG data providers, and ensuring the success of the European Single Access Point. Alignment between CSRD/ESRS and SFDR is necessary, and policymakers should prioritize coherence in EU sustainable finance initiatives.


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For further information, please contact:


Hayley McEwen

Head of Communication & Membership Development

Tel: +32 2 548 26 52



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