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I need to align with SFDR

 

 

The EU Sustainable Finance Disclosure Regulation (SFDR) imposes new transparency and reporting requirements for financial market participants (FMPs) both at the entity and product level. The SFDR reporting requirements serve to both combat green-washing and provide more transparency on sustainability risks across capital markets.

S&P Global's SFDR Data Solution

S&P Global's SFDR Data Solution enables FMPs to start the process of disclosure at the entity-level and eventually at the product-level across a broad range of mandatory and opt-in principal adverse impact indicators (PAIs) outlined by the SFDR. The SFDR characterizes PAIs as impacts of investment decisions and advice that result in negative effects on sustainability factors.

S&P Global's SFDR Data Solution facilitates reporting on PAIs at the portfolio-level by providing underlying constituent-level data.

S&P Global's SFDR Data Solution ("Phase I dataset - March 2021") covers 13 of the 18 proposed mandatory indicators and 19 of the 46 proposed opt-in indicators sourced from a range of S&P Global datasets.

The product is available as a standard package (covering the 13 mandatory indicators and 2 of the opt-in indicators currently covered) or as a full package (covering the 13 mandatory indicators and all the 19 opt-in indicators currently covered).

Our Phase 1 dataset will be followed by a Phase 2, which will address indicator coverage gaps where data is available.

SFDR Disclosures

SFDR includes provisions on disclosure for certain large FMPs as of June 30, 2021 on due diligence policies with respect to the PAIs of investment decisions on sustainability factors. Firms which consider PAIs will also need to disclose how their products consider such impacts by December 30, 2022.

By June 30, 2023, FMPs must disclose detailed information related to a choice of 20 principal adverse impact indicators (PAIs):

Mandatory: 18 indicators
Flexible: 2 indicators can be selected from the remaining 46 social and environmental data points
Voluntary: Any other indicators than the FMP deems relevant to their investment decisions

The disclosure should cover investments made between January 1, 2022 and December 31, 2022.


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  • Mandatory Indicators Covered
  • Opt-in Indicators Covered

S&P Global Coverage of Principal Adverse Impact Indicators (PAIs)

Climate and other environment-related indicators:

  • Greenhouse Gas (GHG) emissions
  • Carbon Footprint
  • GHG intensity of investee companies
  • Exposure to companies active in the fossil fuel sector
  • Share of non-renewable energy consumption and production
  • Energy consumption intensity per high impact climate sector
  • Emissions to water
  • Hazardous waste ratio

Social and employee, respect for human rights, anti-corruption and anti-bribery matters:

  • Unadjusted gender pay gap
  • Board gender diversity
  • Exposure to controversial weapons (anti-personnel mines, cluster munitions, chemical weapons and biological weapons)

Indicators applicable to investments sovereigns and supranationals:

  • GHG intensity

Indicators applicable to investments in real estate assets:

  • Exposure to fossil fuels through real estate assets

S&P Global Coverage of Principal Adverse Impact Indicators (PAIs)

Climate and other environment-related indicators:

  • Emissions of inorganic pollutants
  • Emissions of air pollutants
  • Emissions of ozone depletion substances
  • Breakdown of energy consumption by type of non-renewable sources of energy
  • Water usage and recycling
  • Exposure to areas of high water stress
  • Investments in companies producing chemicals
  • Investments in compnaies without sustainable land/agriculture practices
  • Non-recycled waste ratio

Social and employee, respect for human rights, anti-corruption and anti-bribery matters:

  • Investments in companies without workplace accident prevention policies
  • Rate of accidents
  • Number of days lost to injuries, accidents, fatalities or illness
  • Lack of a supplier code of conduct
  • Lack of grievance/complaints handling mechanism related to employee matters
  • Insufficient whistleblower protection
  • Excessive CEO pay ratio
  • Lack of a human rights policy
  • Lack of due diligence
  • Lack of anti-corruption and anti-bribery policies


Data Sources


To find out more

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