SFDR Blog Series: A complete list of SFDR Principle Adverse Impact Indicators (PAIs)

SFDR Blog Series: A complete list of SFDR Principle Adverse Impact Indicators (PAIs)

SFDR Level 2 requirements, which come into effect January 2023, are much more prescriptive than SFDR Level 1 requirements that already apply. Though Level 2 requirements include additional qualitative disclosures, the key difference lies in the introduction of quantitative data requirements: the PAI indicators. These are an extensive set of metrics that cover a range of ESG criteria, from greenhouse gas emissions to gender pay equality.

This Annex contains the full list of PAIs along with their associated definitions. It is split between:

• Investee Companies' and Real Estate assets' requirements
• Environmental and Social & Governance metrics
• Core and Additional indicators

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*On the 4th of December, the European Supervisor Authorities published a report containing proposed amendments to SFDR’s regulatory technical standards.

The proposals are:

• Additional disclosures for sustainable investments
• Introducing new, and specifying existing, PAIs
• New disclosures on decarbonisation targets
• Revisions to disclosure templates

The European Commission will now take until March 2024 to decide on the proposals. To find out more, read the report or contact a member of our team. The information in this list is up to date as of December 2023.