BRUSSELS — Governments have agreed the broad elements of a political compromise on updates to the Sustainable Finance Disclosure Regulation, according to three officials familiar with the discussions.
There was overall support for the latest compromise proposal from the Cypriot presidency of the EU at a meeting Thursday, the officials said. Countries can submit written comments until Friday, and technical details will be finalized before the deal can be approved by ambassadors at a meeting on June 24, two of the officials said.
Once finalized, the deal will pave the way for legislative negotiations with members of the European Parliament when the Parliament agrees its own stance.
The SFDR revision introduces three categories for investment products: sustainable, transition and ESG basics, changing the legislation from a de facto labeling system. It also simplifies company-level disclosures on how investment decisions impact sustainability.
