Most Financial Market Participants will be preparing and releasing their yearly SFDR Periodic disclosures for the reference year 2023 in Q1-2024.
The annual Periodic disclosures will be based on Environmental, Social, and Governance (ESG) data from potentially different data providers. To ensure compliance with the regulatory requirements, the calculations for the yearly reports are performed based on the average values from all four quarters, specifically considering data as of the last day of each quarter – March 31, June 30, September 30, and December 31.
ESG Data is reported once per year by corporates (as part of the Non-Financial Reporting Directive – NFRD, and later of Corporate Sustainability Reporting Directive – CSRD), so the ESG values do not typically change during the year. Still ESG Indicators for funds vary over the year, because of their regular rebalancing. The clear definition of ESG data and calculation methodologies are currently associated with some challenges.
Please contact us to find out how cleversoft handles the challenges with key ESG Data Sources.