Text · Report parliamentary committee draft
On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) and repealing Commission Delegated Regulation (EU) 2022/1288
Full title
On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) and repealing Commission Delegated Regulation (EU) 2022/1288
Document ECON-PR-787886 · COM(2025)0841 – C100308/2025 – 2025/0361(COD)
- Kind
- Report parliamentary committee draft ECON-PR-787886
- Date
- 28 April 2026
- Committee
- Committee on Economic and Monetary Affairs
- Rapporteur
- GerbenJan Gerbrandy
- Dossier
- 2025-0361
More facts (3)
- Formats
- Official page PDF Word
- Subject matter
- INV, LCC, FISM
- Reference
- COM(2025)0841 – C100308/2025 – 2025/0361(COD)
In short
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This is the rapporteur's draft report on the Commission proposal to amend Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR) and Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs), and to repeal Commission Delegated Regulation (EU) 2022/1288. The draft resolution adopts Parliament's first-reading position and calls on the Commission to refer the matter to Parliament again if it replaces or substantially amends its proposal. The amendments add packaged investment product manufacturers to the definition of financial market participants, carve financial advisers out of scope, and require a minimum 70% of investments in each category to match the sustainability-related claim. They require mandatory principal adverse impact indicators for categorised products, a statement that non-categorised products do not meet EU standards for defining sustainable financial products, and disclosure of sustainability-related engagement strategies. They raise the taxonomy-alignment threshold from 15% to 20%, remove the benchmark safe harbours, and set application 24 months after entry into force, with burden-reduction provisions applying from entry into force.
Position. The rapporteur proposes to amend the Commission proposal to enhance transparency, effectiveness and burden relief. The amendments add mandatory principal adverse impact indicators, require a 70% minimum investment threshold, raise the taxonomy-alignment threshold to 20%, remove benchmark safe harbours, and apply burden-reduction provisions from entry into force.
Key points
- Financial market participants would include manufacturers of packaged investment products, while financial advisers providing investment advice would be carved out of the scope of Regulation (EU) 2019/2088.
- A minimum portion of 70% of investments by financial products in each category must be made in accordance with the sustainability-related claim; the remaining investments may be freely allocated but must not contradict the claim.
- Financial market participants must document their use of data sources and external and in-house estimates and provide clients with information on such use upon request.
- The amending Regulation would apply 24 months after entry into force, except provisions narrowing the scope of Regulation (EU) 2019/2088 and removing entity-level disclosures on principal adverse impacts and remuneration policies, which would apply from entry into force.
- Non-categorised products may refer to ancillary sustainability information, but it must not be prominent, must not feature in the name or marketing communications, and must be accompanied by a statement that the product does not meet EU standards for defining sustainable financial products.
- Financial market participants must use the mandatory principal adverse impact indicators established under the delegated act adopted pursuant to Article 19b, and must complement them with indicators material for the investment; other indicators may be disclosed voluntarily.
- The conditions for taxonomy-aligned investments would be met at a proportion of 20% or higher, replacing the 15% threshold.
- The safe harbours for financial products replicating or managed in reference to an EU climate transition benchmark or an EU Paris-aligned benchmark would be deleted.
- Investments in issuances by public sector bodies outside the threshold must be consistent with the stated sustainability-related objective or strategy of the financial product.
- For 'ESG basics', investments must outperform the average investment universe or reference benchmark after eliminating at least 20% of the lowest-rated securities or lowest values for the chosen indicator.
- Financial market participants must disclose a description of their sustainability-related engagement strategy and how it aligns with the product's objectives, or explain why they do not pursue one.
- The Commission must review every 36 months the need to adjust the proportion of taxonomy-aligned investments, and delegated acts must be suitable for retail investors and not exceed two pages for certain disclosures.
Who is affected
- Financial market participants, including manufacturers of packaged investment products, must meet new disclosure and categorisation rules.
- Financial advisers providing investment advice are carved out of the scope of Regulation (EU) 2019/2088.
- Retail investors receive clearer information, including statements on whether products meet EU standards for defining sustainable financial products.
- PRIIP manufacturers must include categorisation or a non-sustainability statement in key information documents.
Figures and deadlines
- 70% minimum portion of investments in each category must be made in accordance with the sustainability-related claim.
- 20% threshold for taxonomy-aligned investments, replacing 15%.
- 24 months after entry into force for the amending Regulation to apply.
- 36 months after the date of application for the Commission's first review and every 36 months thereafter.
- At least 20% of the lowest-rated securities or lowest values for the chosen indicator must be eliminated.
- Disclosures must not exceed two pages, and certain information must not exceed one page.
Legal basis. Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union.
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Draft european parliament legislative resolution
–having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100308/2025),
2.Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;
3.Instructs its President to forward its position to the Council, the Commission and the national parliaments.
| Text proposed by the Commission | Amendment |
|---|---|
| (7) It is necessary to adjust the scope of Regulation (EU) 2019/2088 and to adjust certain definitions therein to reflect those objectives. Regulation (EU) 2019/2088 should continue to require financial market participants to disclose how they consider sustainability risks affect the financial products they offer to investors. Beyond these elements, Regulation (EU) 2019/2088 should, however, focus exclusively on the specific requirements and associated disclosures applicable to financial market participants which manufacture, manage or make available sustainability-related financial products, particularly those that reference sustainability-related elements in their names or marketing documentation to end-investors. Financial advisers providing investment advice do not manufacture or manage sustainability-related financial products, nor do they make such products available to investors. For that reason, financial advisors providing investment advice should be carved out of the scope of Regulation (EU) 2019/2088 altogether. Their role is rather as distributors to identify the products made available by financial market participants that match their clients’ sustainability preferences. The rules for distributors should therefore duly reflect the changes introduced by this Regulation, especially the categorisation regime for financial products making sustainability-related claims. The same applies to the service of portfolio management, consisting of managing portfolios of financial instruments in accordance with mandates given by clients on a discretionary client-by-client basis and which are thus not designed and marketed the same way as products identified for certain target markets. | (7) It is necessary to adjust the scope of Regulation (EU) 2019/2088 and to adjust certain definitions therein to reflect those objectives. Regulation (EU) 2019/2088 should continue to require financial market participants to disclose how they consider sustainability risks affect the financial products they offer to investors. Beyond these elements, Regulation (EU) 2019/2088 should, however, focus exclusively on the specific requirements and associated disclosures applicable to financial market participants which manufacture, manage or make available sustainability-related financial products, particularly those that reference sustainability-related elements in their names or marketing documentation to end-investors. Such financial products include packaged investment products. Therefore, manufacturers of a packaged investment product should be included in the definition of financial market participants. Financial advisers providing investment advice do not manufacture or manage sustainability-related financial products, nor do they make such products available to investors. For that reason, financial advisors providing investment advice should be carved out of the scope of Regulation (EU) 2019/2088 altogether. Their role is rather as distributors to identify the products made available by financial market participants that match their clients’ sustainability preferences. The rules for distributors should therefore duly reflect the changes introduced by this Regulation, especially the categorisation regime for financial products making sustainability-related claims. The same applies to the service of portfolio management, consisting of managing portfolios of financial instruments in accordance with mandates given by clients on a discretionary client-by-client basis and which are thus not designed and marketed the same way as products identified for certain target markets. |
| Text proposed by the Commission | Amendment |
|---|---|
| (11) Financial market participants should not be prohibited from referring to information on sustainability aspects of an ancillary nature in the regulatory disclosures related to financial products even if not categorised as sustainability-related financial products. Such information should be fair, clear and not misleading. However, to protect investors and distinguish clearly between non-categorised and categorised financial products, such information should not constitute a prominent element in those disclosures and should not feature in the name or marketing communications of such financial products. In addition, for financial products that are categorised as sustainability-related financial products, financial market participants should ensure that the claims in the regulatory, marketing documentations and names of their sustainability-related financial products are consistent with the category under which they fall and their strategies. | (11) Financial market participants should not be prohibited from referring to information on sustainability aspects of an ancillary nature in the regulatory disclosures related to financial products even if not categorised as sustainability-related financial products. Such information should be fair, clear and not misleading. However, to protect investors and distinguish clearly between non-categorised and categorised financial products, such information should not constitute a prominent element in those disclosures, should not feature in the name or marketing communications of such financial products, and should be accompanied by a statement confirming that the product does not meet EU standards for defining sustainable financial products and protecting against greenwashing. In addition, for financial products that are categorised as sustainability-related financial products, financial market participants should ensure that the claims in the regulatory, marketing documentations and names of their sustainability-related financial products are consistent with the category under which they fall and their strategies. |
| Text proposed by the Commission | Amendment |
|---|---|
| (14) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability-related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. A list of voluntary indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective. | (14) To help comparability and boost integrity, a minimum portion of 70% of investments by financial products in each category should be made in accordance with the sustainability-related claim, i.e. the objective that is pursued or the sustainability-related considerations that are applied. Financial market participants should be allowed to freely allocate the remaining investments based on diversification, hedging or liquidity needs. These remaining investments should not contradict the sustainability-related claims of the financial product. The full implementation of an investment strategy for a given financial product can take a certain period of time, especially for alternative or private assets. That period of time is communicated in pre-contractual documents. The percentage of investments necessary to meet the objectives of the product may not be immediately reached during that phase-in period. The percentage should be attained at the latest at the expiry of the phase-in period. The 70% threshold would mean an increase in ambition compared to the 50% minimum portion of ‘sustainable investment’ required for funds using a sustainability-related term in their names under the ESMA guidelines on funds’ names. It is also considered to allow for continuity with the rule of having 80% of investments made in accordance with the ESG claim pursued with the fund name under those guidelines, considering that the conditions for the 70% threshold would be stricter than the current 80% under the ESMA guidelines (i.e. new conditions for investments to be deemed as contributing to a sustainability or transition related objectives or as integrating sustainability-related considerations). Finally, it allows for sufficient margin for hedging investments, and is aligned with other international investment labels, which would facilitate international convergence. To guide financial market participants and provide them with certainty, specific investment approaches for financial products should be identified per category, but without excluding other possible approaches in each case under the condition that these provide for the same level of sustainability-related ambition. Findings from recent evaluations show that there is no ‘one size fits all’ on how to granularly specify what a positive contribution to a sustainability objective or transition should be. That is mainly due to the wide variety of assets, strategies, sustainability objectives or factors that exist in the current market. A closed list of granular criteria for contribution would therefore restrict the investment universe too much and risk hindering innovative practices. Instead, the list of possible approaches should aim at identifying robust existing sustainability standards and encouraging their use. The 70% threshold should focus on ensuring harmonised levels of contribution rather than granularly specify the nature of the contribution for each category. Specific disclosures on the chosen approach to contribution should be given to end-investors. Financial market participants should measure their contribution, the compliance with the strategy and the progress towards the sustainability objective, through appropriate sustainability-related indicators and disclose those indicators. A set of mandatory principal adverse impact indicators should allow investors to compare financial products within each category. Those indicators should be complemented by other principal adverse impact indicators that are material for the investment and other principal adverse impact indicators that are disclosed on a voluntary basis. A list of indicators should be developed for this purpose. Such indicators should build on the indicators referred to in Annex I of Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772, and on information disclosed by companies, ensuring, to the extent appropriate, continuity with current market practices under this Regulation. This would encourage harmonisation and comparability in the way financial market participants measure and disclose their contribution to an objective. |
| Text proposed by the Commission | Amendment |
|---|---|
| (24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants, without however imposing new requirements on third party sustainability data providers. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request. | (24) The wide range of potential investable assets for financial products that can be categorised as sustainability-related financial products means that there will continue to be certain data gaps in relation to sustainability data from investees and other assets. It is therefore appropriate to formalise and improve transparency about the use of estimates by financial market participants. Notably, proportionate steps should be introduced whereby financial market participants are to document their use of data sources and their use of external and in-house estimates and are to provide their clients with information on such use upon request. The Commission should consider the provisions of this Regulation when carrying out the review under Article 52 of the Regulation (EU) 2024/3005, in particular to determine whether the scope of that Regulation should be extended to include providers of data products on environmental, social and human rights, and governance factors with a view to ensuring that minimum standards on transparency of data sources, control of data quality and data coverage, disclosure of methodologies and fair commercial practices apply in relation to data and estimates provided by such providers for the purposes of this Regulation. |
| Text proposed by the Commission | Amendment |
|---|---|
| (32a) In order to ensure that financial market participants have sufficient time to undertake any measures necessary to comply with the rules introduced by this amending Regulation, it should apply from 24 months after its entry into force. However, Article 1, points (2)(a) to (d), and Article 1, point (5), of this amending Regulation that lead to a burden reduction by narrowing the scope of Regulation (EU) 2019/2088 and removing disclosures on entity-level on principal adverse impacts and remuneration policies, should apply from the date of entry into force of this amending Regulation. |
| Text proposed by the Commission | Amendment |
|---|---|
| (iia) the following point is added: | |
| ‘(ja) a manufacturer of a packaged investment product;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (d) in point (12), point (a) is deleted; | (d) point (12) is amended as follows: |
| (i) point (a) is deleted; | |
| (ii) the following point is added: | |
| ‘(ga) a packaged investment product;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (27) 'public sector bodies’ means central governments or central banks, regional governments or local authorities, multilateral development banks as referred to in Article 117 of Regulation (EU) No 575/2013 of the European Parliament and of the Council*1, and international organisations as referred to in Article 118 of that Regulation; and | (27) 'public sector bodies’ means central governments or central banks, regional governments or local authorities, and international organisations as referred to in Article 118 of Regulation (EU) No 575/2013 of the European Parliament and of the Council*1; |
| Text proposed by the Commission | Amendment |
|---|---|
| (28a) ‘packaged investment product’ means a packaged retail investment product or PRIP as defined in Article 4, point (1), of Regulation (EU) No 1286/2014, other than a UCITS, an AIF, or a derivative as defined in Article 2(1), point (29), of Regulation 600/2014; |
| Text proposed by the Commission | Amendment |
|---|---|
| (28b) 'managed in reference to an EU Climate Transition Benchmark' means a financial product that, in addition to any other objectives or features, complies at least with the methodological requirements laid down in Chapter II, Section 2, of Commission Delegated Regulation (EU) 2020/1818; |
| Text proposed by the Commission | Amendment |
|---|---|
| (28c) 'managed in reference to an EU Paris-aligned Benchmark' means a financial product that, in addition to any other objectives or features, complies at least with the methodological requirements laid down in Chapter II, Section 3, of Commission Delegated Regulation (EU) 2020/1818; |
| Text proposed by the Commission | Amendment |
|---|---|
| (ca) does not include any reference to voluntary sustainability-related labelling schemes with features that do not exceed those in Articles 7, 8 or 9 in terms of specified objectives, investment approaches, governance or transparency requirements. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1a. Financial market participants disclosing information under paragraph 1 of this Article shall include a statement in a prominent manner in the information referred to in Articles 6(3) and 11(2) confirming that the financial product concerned does not meet the EU standards for defining sustainable financial products and protecting against greenwashing. |
| Text proposed by the Commission | Amendment |
|---|---|
| Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability-related indicators. | Financial market participants shall comply with the disclosure requirement described under the first subparagraph, point (d), of this Article by using the mandatory principal adverse impact indicators established in accordance with the delegated act adopted pursuant to Article 19b. |
| Text proposed by the Commission | Amendment |
|---|---|
| Financial market participants shall complement the disclosure requirement described under the first subparagraph, point (d), of this Article by using principal adverse impact indicators which are material for the investment established in accordance with the delegated act adopted pursuant to Article 19b. They may also disclose other principle adverse impact indicators on a voluntary basis. |
| Text proposed by the Commission | Amendment |
|---|---|
| The conditions described in the first subparagraph shall be considered to be met for financial products that replicate or are managed in reference to an EU climate transition benchmark that complies with the requirements laid down in Section 2 of Delegated Regulation (EU) 2020/1818, or an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Chapter II of that Delegated Regulation. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178*6, equal or higher than 15%. | The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178*6, equal or higher than 20%. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where investments of the financial product outside the threshold referred to in the first subparagraph, point (a), include investments in issuances by public sector bodies other than those referred to in the fifth subparagraph, point (a) or (b), those investments shall be consistent with the stated sustainability-related objective or strategy of the financial product. |
| Text proposed by the Commission | Amendment |
|---|---|
| (h) other investments in undertakings, economic activities or other assets that credibly contribute to the transition provided proper justification is included in the disclosures required pursuant to paragraph 3. | (h) other investments in undertakings, economic activities or other assets that credibly contribute to the transition, provided that proper justification of the credible contribution, including in light of the investment options referred to in points (a) to (g) of this subparagraph, is included in the disclosures required pursuant to paragraph 3. |
| Text proposed by the Commission | Amendment |
|---|---|
| (ea) a description of the sustainability-related engagement strategy pursued by the financial market participant, including how that strategy has been implemented in alignment with the sustainability-related objectives of the financial product, or a clear and reasoned explanation of why it does not pursue such a strategy; |
| Text proposed by the Commission | Amendment |
|---|---|
| (ba) they identify and disclose the principal adverse impacts of their investments on sustainability factors, and explain any actions taken to address those impacts. |
| Text proposed by the Commission | Amendment |
|---|---|
| Financial market participants shall comply with the disclosure requirement described under the first subparagraph, point (c), of this Article by using the mandatory principal adverse impact indicators established in accordance with the delegated act adopted pursuant to Article 19b. |
| Text proposed by the Commission | Amendment |
|---|---|
| Financial market participants shall complement the disclosure requirement described under the first subparagraph, point (c), of this Article by using principal adverse impact indicators which are material for the investment established in accordance with the delegated act adopted pursuant to Article 19b. They may also disclose other principle adverse impact indicators on a voluntary basis. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where investments of the financial product include investments in issuances by public sector bodies other than use of proceeds instruments issued by public sector bodies in accordance with Article 3 of Regulation (EU) 2023/2631 or where the proceeds do not fund any underlying activities excluded under Article 12(1), points (a), (b) and (d), of Delegated Regulation (EU) 2020/1818 or companies excluded under Article 12(1), point (c), of that Regulation, those investments shall be consistent with the stated sustainability-related objective or strategy of the financial product. |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) investments with an ESG rating as defined by Regulation 2024/3005 that outperforms the average rating of the investment universe or the reference benchmark; | (a) investments with an ESG rating as defined by Regulation 2024/3005 that outperforms the average rating of the investment universe or the reference benchmark after eliminating at least 20% of the lowest-rated securities; |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) investments that outperform the average investment universe or reference benchmark on a specific appropriate sustainability indicator; | (b) investments that outperform the average investment universe or reference benchmark on a specific appropriate sustainability indicator after eliminating at least 20% of the lowest values for this indicator; |
| Text proposed by the Commission | Amendment |
|---|---|
| (e) other investments integrating sustainability factors beyond the consideration of sustainability risks, provided proper justification is included in the disclosures required pursuant to paragraph 3. | (e) other investments integrating sustainability factors beyond the consideration of sustainability risks, provided that proper justification as to the integration of such sustainability factors, including in light of the investment options referred to in points (a) to (d) of this paragraph, is included in the disclosures required pursuant to paragraph 3. |
| Text proposed by the Commission | Amendment |
|---|---|
| (ea) a description of the sustainability-related engagement strategy pursued by the financial market participant, including how that strategy has been implemented in alignment with the sustainability-related objectives of the financial product, or a clear and reasoned explanation of why it does not pursue such a strategy; |
| Text proposed by the Commission | Amendment |
|---|---|
| Financial market participants may choose to comply in full or in part with the disclosure requirement described under the first subparagraph point (d) by using appropriate sustainability related indicators. | Financial market participants shall choose to comply in full or in part with the disclosure requirement described under the first subparagraph, point (d), of this Article by using the mandatory principal adverse impact indicators established in accordance with the delegated act adopted pursuant to Article 19b. |
| Text proposed by the Commission | Amendment |
|---|---|
| Financial market participants shall complement the disclosure requirement described under the first subparagraph, point (d), of this Article by using principal adverse impact indicators which are material for the investment established in accordance with the delegated act adopted pursuant to Article 19b. They may also disclose other principle adverse impact indicators on a voluntary basis. |
| Text proposed by the Commission | Amendment |
|---|---|
| The conditions referred to in the first subparagraph shall be considered met for financial products that replicate or are managed in reference to an EU Paris-aligned benchmark that complies with the requirements laid down in Section 3 of Delegated Regulation (EU) 2020/1818. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178, equal or higher than 15%. | The conditions described under the first subparagraph, point (a) shall be considered met for financial products with a proportion of investments in taxonomy-aligned economic activities, as defined in Article 1, point (2), of Delegated Regulation (EU) 2021/2178, equal or higher than 20%. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where investments of the financial product outside the threshold referred to in the first subparagraph, point (a), include investments in issuances by public sector bodies other than those referred to in the fifth subparagraph, point (a) or (b), those investments shall be consistent with the stated sustainability-related objective or strategy of the financial product. |
| Text proposed by the Commission | Amendment |
|---|---|
| (g) other investments in undertakings, economic activities, or assets that contribute to an environmental objective or a social objective, provided that a proper justification is included in the disclosures required pursuant to paragraph 3. | (g) other investments in undertakings, economic activities, or assets that contribute to an environmental objective or a social objective, provided that proper justification of such contribution, including in light of the investment options referred to in points (a) to (g) of this paragraph, is included in the disclosures required pursuant to paragraph 3. |
| Text proposed by the Commission | Amendment |
|---|---|
| (ea) a description of the sustainability-related engagement strategy pursued by the financial market participant, including how that strategy has been implemented in alignment with the sustainability-related objectives of the financial product, or a clear and reasoned explanation of why it does not pursue such a strategy; |
| Text proposed by the Commission | Amendment |
|---|---|
| The information referred to in subparagraph 1 may be disclosed by form of weblinks to the respective documentation referred to in Article 6(3) or Article 11(2). | The information referred to in the first paragraph of this Article may be disclosed by form of weblinks to the respective documentation referred to in Article 6(3) or Article 11(2) and may be complemented with additional explanations to justify methodologies for investments contributing to the thresholds referred to in Article 7(1), 8(1) or 9(1). |
| Text proposed by the Commission | Amendment |
|---|---|
| (i) the use of data provided by external data providers, other than open source or research freely available to the public, is based on formalised and documented arrangements; | (i) the use of data, including estimates, provided by external data providers, other than open source or research freely available to the public, is based on formalised and documented arrangements; |
| Text proposed by the Commission | Amendment |
|---|---|
| The claims in the names and in the marketing communications referred to in the first subparagraph shall be clear, fair, not misleading, and consistent with the sustainability features of those financial products. | The claims in the names and in the marketing communications referred to in the first subparagraph shall be clear, fair, not misleading, and consistent with the sustainability features and category of those financial products. |
| Text proposed by the Commission | Amendment |
|---|---|
| (c) adjusting the proportion of investments in taxonomy-aligned economic activities needed to comply with the option under Article 7(1), third subparagraph, and Article 9(1), third subparagraph.; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| By … [36 months after the date of application of this Regulation] and every 36 months thereafter, the Commission shall review the need to adjust the proportion of investments in taxonomy-aligned economic activities needed to comply with the option under Article 7(1), third subparagraph, and Article 9(1), third subparagraph. |
| Text proposed by the Commission | Amendment |
|---|---|
| (i) indicator(s) building on the indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1288*11 and Commission Delegated Regulation (EU) 2023/2772 [to be adapted to the new CSRD delegated act]*12 for voluntary use by financial market participants when complying with paragraph 1, first subparagraph, point (a) and point (d); | (i) indicator(s) building on the indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1288*11 and Commission Delegated Regulation (EU) 2023/2772 [to be adapted to the new CSRD delegated act]*12 for use by financial market participants when complying with paragraph 1, first subparagraph, point (a) and point (d); |
| *12 Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards (OJ L, 2023/2772, 22.12.2023, ELI: http://data.europa.eu/eli/reg_del/2023/2772/oj).’ | *12 Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards (OJ L, 2023/2772, 22.12.2023, ELI: http://data.europa.eu/eli/reg_del/2023/2772/oj).’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the details of the presentation of the information to be disclosed pursuant to paragraph 3, which shall not exceed two pages, and the information to be disclosed pursuant to paragraph 4, which shall not exceed one page.; | (b) the details of the presentation of the information to be disclosed pursuant to paragraph 3, which shall be suitable for retail investors and shall not exceed two pages, and the information to be disclosed pursuant to paragraph 4, which shall not exceed one page.; |
| Text proposed by the Commission | Amendment |
|---|---|
| (i) indicator(s) building on the indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772 [to be adapted to the new CSRD delegated act] for voluntary use by financial market participants when complying with paragraph 1, first subparagraph, point (a); | (i) indicator(s) building on the indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772 [to be adapted to the new CSRD delegated act] for use by financial market participants when complying with paragraph 1, first subparagraph, point (a); |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the details of the presentation of the information to be disclosed pursuant to paragraph 3, which shall not exceed two pages.; | (b) the details of the presentation of the information to be disclosed pursuant to paragraph 3, which shall be suitable for retail investors and shall not exceed two pages.; |
| Text proposed by the Commission | Amendment |
|---|---|
| (i) indicator(s) building on the indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772 [to be adapted to the new CSRD delegated act] for voluntary use by financial market participants when complying with paragraph 1, first subparagraph, point (a) and point (d); | (i) indicator(s) building on the indicators referred to in Annex I to Commission Delegated Regulation (EU) 2022/1288 and Commission Delegated Regulation (EU) 2023/2772 [to be adapted to the new CSRD delegated act] for use by financial market participants when complying with paragraph 1, first subparagraph, point (a) and point (d); |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) specify the details of the presentation of the information to be disclosed pursuant to paragraph 3, which shall not exceed two pages, and the information to be disclosed pursuant to paragraph 4, which shall not exceed one page. | (b) specify the details of the presentation of the information to be disclosed pursuant to paragraph 3, which shall be suitable for retail investors and shall not exceed two pages, and the information to be disclosed pursuant to paragraph 4, which shall not exceed one page. |
| Text proposed by the Commission | Amendment |
|---|---|
| (d) paragraph 1 of Article 11 by specifying the details of the presentation of the information to be disclosed, which shall not exceed two pages. | (d) paragraph 1 of Article 11 by specifying the details of the presentation of the information to be disclosed, which shall be suitable for retail investors and shall not exceed two pages. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. Before adopting a delegated act, the Commission shall gather all necessary expertise, including through the consultation of the experts of the Member State Expert Group on Sustainable Finance referred to in Article 24 of Regulation (EU) 2020/852, and where appropriate the European Supervisory Authorities, and in accordance with the principles and procedures laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. | 4. Before adopting a delegated act, the Commission shall gather all necessary expertise, including through the consultation of the European Supervisory Authorities and the experts of the Member State Expert Group on Sustainable Finance referred to in Article 24 of Regulation (EU) 2020/852, and in accordance with the principles and procedures laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. |
| Text proposed by the Commission | Amendment |
|---|---|
| (ca) for a PRIIP that is a sustainability-related financial product as defined in Article 2, point (25), of Regulation (EU) 2019/2088, under a section titled ‘How sustainable is this product?’, its categorisation in accordance with either Article 7, 8 or 9 of that Regulation, and a description of its objective including relevant indicators. | (ca) for a PRIIP that is a sustainability-related financial product as defined in Article 2, point (25), of Regulation (EU) 2019/2088, under a section titled ‘How sustainable is this product?’, its categorisation in accordance with either Article 7, 8 or 9 of that Regulation, and a description of its objective including relevant indicators; for a PRIIP that is not a sustainability-related financial product as defined in Article 2, point (25), of Regulation (EU) 2019/2088, under a section titled ‘How sustainable is this product?’, a statement confirming that the financial product concerned does not meet the EU standards for defining sustainable financial products and protecting against greenwashing; |
| Text proposed by the Commission | Amendment |
|---|---|
| It shall apply from [18 months after entry into force]. | It shall apply from [24 months after entry into force]. |
| Text proposed by the Commission | Amendment |
|---|---|
| However, Article 1(2), points (a) to (f), with the exception of the reference to point 17 in point (e) of that paragraph, Article 1(3), Article 1(5) shall apply from [the date of entry into force]. |
Back matter, 1
Parts that accompany the text rather than belong to it: explanatory statement, annexes, opinions appended by other committees. Collapsed.
Explanatory statement 4 blocks
Reliable transparency on the sustainability of financial products is a conditio sine qua non to create a financial framework in which investors can choose to invest in financial products with environmental, social and governance (ESG) ambitions. The rapporteur welcomes the Commission proposal on a review of the Sustainable Finance Disclosure Regulation (SFDR), which creates more meaningful categories for investors while providing burden relief to financial market participants. The rapporteur considers the ‘transition’, ‘ESG basics’, and ‘sustainable’ categories and their respective exclusions to be helpful tools in this regard. The proposal provides an excellent starting point to create a better sustainable finance framework in the European Union. Nonetheless, the rapporteur believes the Commission proposal can be enhanced on transparency, on effectiveness, and on burden relief.
On transparency, the rapporteur’s amendments aim to provide further clarity to investors on the ESG conditions of their financial product. (1) While financial products manufacturing products that cannot be categorised under the SFDR should still be able to disclose limited information on the integration of sustainability factors, a disclaimer that this financial product does not meet the EU standards for defining sustainable financial products and protecting against greenwashing should make it clear to retail investors that they are not buying SFDR compliant products. (2) Furthermore, the rapporteur proposes enhancing the comparability of categorised products by requiring a limited set of mandatory principal adverse impact indicators to be disclosed. While it is a dilemma to continue allowing this uneven playing field between categorised and non-categorised products, given the widespread support for simplification, the rapporteur believes this to be a proportionate measure. (3) Lastly, financial market participants offering products that are categorised under the SFDR should disclose a description of the sustainability-related engagement strategy pursued by the financial market participant and how it has been implemented in alignment with the objectives of the product or a clear and reasoned explanation of why it does not pursue one.
On effectiveness, the rapporteur’s amendments aim to create more meaningful impact on sustainable investment. (1) The ‘ESG basics’ can be enhanced by requiring investments to outperform the average investment universe, reference benchmark, or average rating, after eliminating at least 20% of the lowest values for the chosen indicators or ratings. (2) While the safe harbours for EU climate transition benchmarks or EU Paris-aligned benchmarks in the ‘transition’ and ‘sustainable’ categories provide a solid link to other EU legislation, this link is still existent when removing the safe harbour and requiring the same conditions on exclusions for all investments. (3) The safe harbour for products offering investments in taxonomy-aligned economic activities should be increased from 15 to 20%, a condition that is already met by 44.1% of current Article 9 funds.
On burden relief, the rapporteur supports the Commission proposal on the removal of entity-level reporting. In preparation of the entry into force of the reviewed Regulation, the rapporteur advocates that those elements regarding burden relief should start applying immediately upon entry into force. Furthermore, some other adjustments of the Commission proposal are included in the rapporteur’s amendments.
Connections
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Sources & citation
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- Data source
- Licensed CC BY 4.0.
- Retrieved
- 25 September 2026
Cite as
European Parliament (2026). “DRAFT REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) and repealing Commission Delegated Regulation (EU) 2022/1288”. Text, 28 April 2026. docId ECON-PR-787886. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/ECON-PR-787886 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/ECON-PR-787886 (CC BY 4.0).
BibTeX
@misc{epw-text-econ-pr-787886,
author = {{European Parliament}},
title = {{DRAFT REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) and repealing Commission Delegated Regulation (EU) 2022/1288}},
year = {2026},
date = {2026-04-28},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/ECON-PR-787886}},
url = {https://news.eu-parl.st-solutions.dev/texts/ECON-PR-787886},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId ECON-PR-787886. Data: EP Open Data API: document record (CC BY 4.0)}
}