Who has to comply?

Financial market participants and financial advisors within the EU. This includes asset managers, institutional investors, insurance companies, and pension funds, among others.

Financial market participants with fewer than 500 employees are not required to produce a principal adverse impact statement. However, if they do not comply, they are required to explain why.

What are the requirements?
  • Financial market participants must publish a principal adverse sustainability impacts statement on their website. The statement should include information about emissions and other climate-related matters, as well as social and employee matters. 
  • With respect to emissions, they must report on scope 1 and 2 emissions, and from January 2023, also on scope 3 emissions. 
  • They must also report on the GHG intensity of investee companies, and on their own exposure to companies active in the fossil fuel sector.