From 10 March, 2021, FMPs must publish on their website:
information about FMP policies on the integration of sustainability risks in their decision making process
information about FMP remuneration policies and how those policies are consistent with the integration of sustainability risks
From 10 March, 2021, FMPs must include in their prospectus (or explain why they are not doing so) descriptions of:
the manner in which sustainability risks are integrated into their investment decisions
the results of the assessment of the likely impacts of sustainability risks on the returns of the financial products (FPs) they make available
where FMPs deem sustainability risks not to be relevant, the descriptions shall include a clear and concise explanation of the reasons therefor
From 10 March, 2021, specific product disclosures are required for light-green (A8) and dark-green (A9) funds. Further requirements apply from 1 January 2022, including around principal adverse impacts.
From September 2021 (at the earliest), requirements around the integration of sustainability risks for UCITS & AIFs will apply.
From 1 January 2023, further disclosure requirements will apply to light-green (A8) or dark-green (A9) funds, including around "do no significant harm" and Taxonomy Regulation disclosures.
The Disclosures Regulation requires technical standards (RTS) to be developed by the ESAs. Six of the seven RTS should be delivered by 30 December 2020 with the final RTS delivered by 30 December 2021. The six RTS will generally apply from 10 March 2021. Some provisions for products with an ESG focus or objective will apply from 1 January 2022.
The ESAs published draft templates for pre-contractual and periodic disclosures for ESG products in the form of a survey requesting feedback by 16 October 2020. This is discussed in EU & International Developments.
The Taxonomy Regulation supplements the disclosures required under the Disclosures Regulation for light-green (A8) and dark-green (A9) funds. There are RTS required under the Taxonomy Regulation for those disclosures and it's worth noting that the Taxonomy RTS can amend the Disclosures RTS.