ESMA Reports On Outcome Of CSA On Sustainability Disclosures

In July 2023, the European Securities and Markets Authority ("ESMA") launched a common supervisory action ("CSA") with national competent authorities ("NCAs") on the integration of sustainability risks and disclosures in the investment fund sector. ESMA's aim in conducting the CSA was to assess and foster compliance of supervised entities with:

• the amendments to the directive on Undertakings in Collective Investment in Transferable Securities ("UCITS Directive") and the Alternative Investment Fund Managers Directive ("AIFMD") introducing measures on the integration of sustainability risks;
• the current regulatory framework under the Sustainable Finance Disclosure Regulation ("SFDR") including the financial product disclosure of the share of investments aligned with the criteria set out in the Taxonomy Regulation and