MFA submitted a comment letter to the European Supervisory Authority (ESA) regarding their Joint consultation on the review of SFDR Delegated Regulation. The letter expresses MFA’s support for the objective of the Sustainable Finance Disclosure Regulation (SFDR) to improve transparency in the sustainable investment product market.
However, MFA’s members employ various investment strategies, including those that take climate risk into account, and some members offer products with specific climate-related goals. Consequently, MFA has significant concerns about the SFDR’s inadequate and inconsistent consideration of the potential of investment tools to influence companies’ behavior and facilitate capital reallocation.
MFA’s recommendations aim to ensure that sustainable finance regulations acknowledge the crucial and distinctive role that the alternative asset management sector can play in promoting sustainable practices and generating positive environmental and social outcomes.