Brussels: The Council of the European Union has agreed on its negotiating position concerning the revision of the sustainability transparency framework for financial products within the single market. This move aims to alleviate administrative burdens for market participants and improve the ability of investors to understand and compare sustainable finance products.
According to Cyprus News Agency, the revision focuses on the Sustainable Finance Disclosure Regulation (SFDR), which has been in effect since 2021. The SFDR mandates how financial market participants should disclose information regarding environmental, social, and governance (ESG) risks and impacts.
In a statement included in the press release, Finance Minister Makis Keravnos emphasized that updating and simplifying the rules will help financial market participants better communicate their sustainability efforts. This will also enable investors to more easily understand and compare related financial products.
The Minister further noted that the review is expected to contribute significantly to a more integrated single market by encouraging investments that bolster the EU's competitiveness and align with its environmental and social goals.
The Council's position serves as its negotiating mandate for initiating discussions with the European Parliament on the revised SFDR Regulation, pending the establishment of the Parliament's own position.