Communication on the CSSF feedback report on ESMA Common Supervisory Action on sustainability risks and disclosures
CSSF
The objective of this CSA was to assess the compliance of supervised IFMs with the relevant provisions in the Sustainable Finance Disclosure Regulation, the Taxonomy Regulation and relevant implementing measures, including the relevant provision in the UCITS Directive and AIFMD implementing acts on the integration of sustainability risks.
This CSA also aimed at promoting supervisory convergence by improving the comprehensibility of sustainability-related disclosures by IFMs across key segments of the sustainable finance value chain.
In June 2025, ESMA published its report on the CSA. ESMA noted that the level of compliance of IFMs with the sustainability-related rules is overall satisfactory. Still, ESMA found that improvements are needed in the integration of sustainability risks, entity level SFDR disclosures and product level SFDR disclosures. ESMA also mentioned that further work will be performed for promoting supervisory convergence in the area.
The objective of this Communiqué is to inform market participants of the publication of the CSSF feedback report on the ESMA CSA on sustainability risks and disclosures in the investment management sector. While the CSSF notes that the overall level of compliance for Luxembourg-domiciled IFMs is consistent with ESMA’s conclusions, it also presents in the feedback report the main observations, related recommendations for improvements in view of the applicable regulatory requirements, as well examples of good practices.
Finally, the CSSF hereby asks all IFMs to conduct a comprehensive assessment of their compliance with the observations in the ESMA report and the CSSF feedback report. IFMs should take the necessary corrective measures where applicable. It is noteworthy that this assessment must be carried out by all IFMs, as some observations apply regardless of whether they manage sustainability-related products under SFDR.
https://www.cssf.lu/wp-content/uploads/CSSF-FD-report-CSA.pdf