On 3 May 2019, the European Securities and Markets Authority (ESMA) published its technical advice to the European Commission (Commission) on sustainable finance initiatives to support the European Commission’s Sustainability Action Plan in the areas of investment services and investment funds.

The final reports contain technical advice to the Commission on the integration of sustainability risks and factors, relating to environmental, social and governance (ESG) considerations with regards to investment firms and investment funds, into MiFID II, AIFMD and the UCITS Directive.

ESMA previously consulted on its technical advice alongside a separate paper on guidelines for disclosure requirements applicable to credit ratings, including the consideration of ESG factors. Responses to ESMA’s consultation on its technical advice are included in the respective final report documents. The final report of the paper concerning disclosure requirements is expected to be published by the end of July.