The consultation on the Sustainable Finance Disclosure Regulation “SFDR” Regulatory Technical Standards for sustainability reporting is hugely significant for the real estate industry. This will apply to organisations regulated under AIFMD, Solvency II, IORP and other EU regulations. Please look out for the webinar AREF will be holding on this subject in July.
On 23rd April, the three European Supervisory Authorities issued a consultation on the proposed Regulatory Technical Standards (RTS) for ESG disclosure. The regulation to which the RTS relates, the Sustainable Finance Disclosure Regulation “SFDR” was published on 27th November 2019 for sustainability reporting that will apply to organisations regulated under AIFMD, Solvency II, IORP and other EU regulations.
This is hugely significant for the real estate industry. Fund managers within AIFMD will be caught directly. Others may be caught indirectly through having clients that are regulated under the Solvency II and IORP Directives.
The reporting provisions are potentially highly problematic for real estate as an asset class as they appear to have been drafted with funds investing in a portfolio of securities in investee companies in mind.
The ESG & Impact Investing Committee and Public Affairs Committee are working together on AREF’s response to this consultation, but would welcome further input from fund managers so please email any comments and thoughts you have on this consultation to Jacqui Bungay. Please let us know who in your organisation is looking at this.
ESMA are holding a public hearing by webinar on ESA’s consultation on SFDR RTS. If you wish to attend you need to register by 25 June here.