The European Commission has announced plans to develop an ESG Benchmark label, and will tighten requirements for Article 8 funds under the Sustainable Finance Disclosure Regulation (SFDR) as part of its ‘renewed’ sustainable finance strategy.
Such a benchmark would be similar to the existing Paris-aligned and Climate Transition benchmarks, but would cover a wider range of sustainability and ESG factors.
The Commission said that it will assess the possibility of creating an ESG Benchmark label, “taking into account the evolving nature of sustainability indicators and the methods used to measure them”.
Consequently, the Commission will carry out a study of existing ESG-related benchmarks, best practices and shortcomings, as well as minimum standards for EU ESG Benchmarks.
A separate review will be carried out of the minimum standards for both EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks, to ensure that the underlying asse…