The complete SFDR/RTS is now fully available digitally in one platform: Stainable. What does this deliver?
From January 1, financial market participants and financial advisors are required to attach detailed ESG reports to financial statements per the SFDR/RTS requirements. Strict disclosure requirements around product sustainability also apply.
The automated reporting tool provides the reports, supports publications and can also be used as a foundation for (ESG) strategy: determining the route to (ultimately) green products.
Blue Building Institute launches SFDR Compliant Reporting Tool
Amsterdam, November 11, 2022
Blue Building Institute (BBI) launched the SFDR Compliant Reporting Tool developed exclusively for BBI during the well-attended Blue Day Event on November 10 at the Louwman Museum in Wassenaar.
Financial advisors (FAs) and financial market participants (FMDs), banks, investment firms, alternative investment fund managers, venture capital funds and social entrepreneurship funds, as well as pension funds, asset managers and life insurers, must by law transparently report and publish on their sustainability risks per the SFDR: the Sustainable Finance Disclosure Regulation.
As of January 1, 2023, the SFDR regulation has been tightened and expanded to include the RTS, also known as level 2, which sets very detailed and complex additional requirements. These include calculation methods and formulas, indexes, benchmarks, textual requirements and graphical requirements such as pie charts, bar charts and flow charts. Firms must report and publish detailed information on these in annual reports, on websites, and in pre-contractual information and must include them in policy making. FMDs and FAs have to show colour at the product level - grey, light green, and dark green. This impacts a product's social standing, financial value and risk management.
The SFDR Compliant Reporting Tool provides SFDR/RTS compliant reporting and facilitates strategy formulation and target monitoring. It also offers appropriate textual disclosures where prescribed. It facilitates the complex process of data gathering and processing, thanks partly to crosswalks with taxonomy, labels and certifications, among others. From other ESG labels, certifications and benchmarks, some of the information is often already usable and convertible to SFDR terms.
The entire regulation is contained in a user-friendly, legally reviewed and continuously updated tool. APIs are optional (application programming interface). Also, the SFDR Compliant Reporting Tool makes immediately transparent where any additional expertise or another capacity can be deployed. The periodic management reports are also very suitable for monitoring and managing results and are expandable to due diligence reports. Data remains the exclusive property of the user. The tool is applicable in all European countries and languages.
Alexandra Boot, CEO of Blue Building Institute: "The market is changing very fast. Doing nothing about sustainability is not an option; you must show your colours precisely because this is important for your social standing and the value development of your real estate and investment products. Moreover, it is linked to your risk management; accountants will include this shortly. We make it easier with this tool to be and stay compliant faster and more efficiently, but also to determine your strategy, which is also very important. Eventually, the AFM will enforce it; otherwise, the courts will do it based on European regulations. Just look at the recent rulings around the Shell case and the nitrogen ruling."
You can read more about the Blue Building Network Day 2022 here.