New SFDR principal adverse impacts (or PAI) regime – key points
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The new principal adverse impacts or PAI regime is one of the most challenging elements of the EU’s Sustainable Finance Disclosure Regulation (SFDR). It will require relevant firms to provide extensive disclosures on various ESG related matters, including greenhouse gas emissions and other indicators, in a (controversial) template format.
This briefing gives further detail on the new regime and when its various strands will come into effect.