The disclosure itself encompasses eight parameters as well as 32 sub-parameters that are mandatory for market participants to report and at least one of the optional parameters must be reported for both the Climate and Social category.

Next Steps for Asset Managers

Firms need to be cognizant of the two aspects of reporting, qualitative and quantitative, that must be done as part of SFDR. Qualitative reporting includes pre-contractual disclosures, policies of investment advice and the interweaving of sustainability factors into financial due diligence. Quantitative reporting includes looking at the data warehouse and finding gaps within the datasets that need to be used for quantitative disclosures. Once the gaps have been identified, the next step is zeroing in on a platform that can automate the generation of the report on an ad hoc basis and also on an annual basis, as mandated by the ESAs.

Given these nuances, IVP Regulatory Reporting is under development for SFDR and will be live once the RTS is formalized to help managers identify gaps between their present datasets and the ESG datasets required per the new mandate. In an effort to further assist, white glove Managed Services for SFDR will also be available for clients to ease the burden associated with data sourcing, error/gap mitigation, form creation, value approval and final submission.