Open:FactSet Forum

New Report From ISS ESG: The Promises and Pitfalls of the SFDR

Below is an excerpt from ISS ESG’s recently released paper “The Promises and Pitfalls of the SFDR” . The full paper is available for download from the Institutional Shareholder Services (ISS) online library.

KEY TAKEAWAYS

  • The European Union’s Sustainable Finance Disclosure Regulation (SFDR) promises to enhance transparency and standardization in the finance industry’s response to sustainability challenges.
  • The SFDR’s engrained concept of double materiality and the metrics defined for measuring Principal Adverse Impacts resonate very well with ISS ESG’s research and methodologies.
  • Data availability is a key challenge in the context of reporting on Principal Adverse Impact indicators, but it is not insurmountable and should not be used as an excuse for inaction – established strategies such as modelling and estimation can be applied to bridge the gaps.

Explore ISS ESG solutions mentioned in this report

The full paper is available for download from the Institutional Shareholder Services (ISS) online library. You can access the full paper here.

By:
Dominika Dobielewska, Associate, ESG Methodology, ISS ESG
Ronja Wöstheinrich, Senior Associate, ESG Methodology, ISS ESG