Today (6 July 2023), ESMA has launched a common supervisory action (CSA) to assess the investment fund sector's compliance with SFDR, the Taxonomy and sustainability risk and impact rules under UCITS and AIFMD.
The CSA will run throughout 2023 and until Q3 2024. CSA preliminary findings of greenwashing will be included in ESMA's Final Report to the Commission on greenwashing due by end- May 2024. Our June 2023 briefing on ESMA's progress report on greenwashing is available here.
The stated aim of the CSA is to promote improved comprehensibility of ESG disclosures. It will focus on:
- assessing adherence to applicable rules and standards in practice;
- gathering further information on greenwashing risks in the investment management sector; and
- identifying further relevant supervisory and regulatory intervention to address the issue.
The CSA announcement is accessible here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
