Aiming to slash administrative red tape and boost single-market competitiveness, the EU Council adopted its negotiating position to simplify sustainable finance and ESG disclosure rules for investors.

Overhauling the Transparency Framework

The Council of the European Union on Wednesday agreed its negotiating position on the revision of the sustainability transparency framework for financial products marketed in the single market, with the aim of reducing administrative burdens for market participants and making it easier for investors to understand and compare sustainable finance products.

According to a Council press release, the revision concerns the Sustainable Finance Disclosure Regulation (SFDR), which has been in force since 2021 and sets out how financial market participants must disclose information on environmental, social and governance (ESG) risks and impacts.

Enhancing Single Market Competitiveness

In a statement cited in the press release, Finance Minister, Makis Keravnos, said that updating and simplifying the rules will enable financial market participants to communicate their sustainability efforts more clearly, while allowing investors to understand and compare related financial products more easily.

Above all, Makis Keravnos added, the review will make a significant contribution to creating a more integrated single market by supporting investments that enhance the EU’s competitiveness as well as its environmental and social objectives.

Launching Institutional Negotiations

The position adopted by the Council constitutes its negotiating mandate for the launch of talks with the European Parliament on the revised SFDR Regulation, once the Parliament has established its own position.

Source: CNA (ΚΥΠΕ)