Case Study – Sustainable Finance Disclosure Regulation (SFDR)

EisnerAmper Ireland (EAI) assisted an Investment Management client who provided both Portfolio Management and Investment Advisory services. The Company is a subsidiary of a large financial services group headquartered in Germany.

The Company was required to draft disclosures based on the Sustainable Finance Disclosure Regulation (SFDR) requirements. The SFDR imposes mandatory ESG disclosure obligations for asset managers and other financial markets participants.

Tom Brennan, Head of Risk & Regulatory at EisnerAmper, examined the arrangements in place at the time for the Company’s investment decision making process. EisnerAmper worked with other members of the group and the parent company to ensure that policies and procedures in place were consistent throughout and that they reflected socially responsible practices.

The Company signed up to the UN Principles for Responsible Investment (UNPRI), an international organisation that works to promote the incorporation of environmental, social, and corporate governance factors (ESG) into investment decision-making

The Company also signed the United Nations Principles for Sustainable Insurance (PSI), further embedding ESG in its insurance business.

EisnerAmper helped to draft the Company’s SFDR disclosure policy, ensuring they:

• published information on their strategies for integrating sustainability risks in their investment decision-making processes and investment advisory activities on their websites; and
• made statements on due diligence strategies related to the main adverse sustainability impacts of investment decisions on sustainability factors.

Through this process and from working closely with Tom and his team, the Company completed a robust process to gather the required information to make the disclosures required under SFDR. In examining their business practices and holding them against the SFDR requirements, they were able to form a roadmap to where the Company needs to be in the future and how to assess investments for ESG compliance.

How EisnerAmper Ireland can help

Our multidisciplinary team is on hand to help you chart your ESG journey. We help you navigate the ESG landscape and understand the applicable legislation and frameworks. We also help drive change within your organisation so that sustainability becomes embedded within your strategy, operations and reporting.  

Our ESG services typically include: 

• Developing and documenting a roadmap to achieve demonstrable ESG compliance; 
• Provision of assurance over ESG information included in annual reports or other published documents;  
• Undertaking gap analysis of ESG disclosures;  
• Designing and delivering Board training on ESG topics, standards and requirements; and  
• Provision of tools to assist you in demonstrating compliance with ESG requirements. 

Learn more about our ESG Services here.

Authors