ESMA just published its final report on how asset managers should calculate their key metric for sustainability disclosure – under article 8 of the taxonomy regulation under the EU’s Non-Financial Reporting Directive (NFRD). Read all about it.

“The proposals set out the KPI that asset managers should disclose, the methodology to be applied to that KPI and recommendations for the development of a coefficient methodology to assess Taxonomy-alignment of investments in investee companies that do not report under the NFRD,” ESMA spells out in its Monday press release.

The full 178-page report can be downloaded here. It covers the disclosure obligations not only for asset managers but also for “non-financial undertakings”. The latter will need to calculate KPI’s on three accounts: turnover, capex and opex.


A “key building block” for others too

“ESMA’s advice sets out in concrete terms how to comply with the disclosure obligations under the Taxonomy framework, balancing investors’ demand for high quality information and avoiding undue burdens on market participants,” says the authority’s chair Steven Maijoor.

“These disclosures are essential to provide investors with the information needed to direct investments towards environmentally sustainable activities. They will also be a key building block for the reporting of other financial market participants under the EU Taxonomy.”

ESMA suggests that the reporting should be done using standardised templates, “in order to facilitate comparability of these disclosures and enhance their accessibility to investors that will reuse this information”.