The European Union agrees to reduce ESG reporting requirements for asset management companies

Golden Ten Data reported on July 3 that, according to revised disclosure requirements, European asset management companies are no longer required to report ESG data for all of the assets they hold. The European Commission stated that asset managers who owe a "fiduciary duty" to their clients and manage investment portfolios based on "mandates agreed with clients" are not obliged to provide such information. This is part of the revised version of the EU sustainability reporting standards, published on Friday. These requirements are officially named the European Sustainability Reporting Standards (ESRS) and detail how companies should comply with the EU Corporate Sustainability Reporting Directive. The Commission conducted a public consultation on the so-called "delegated act" draft, with the initial draft released in May and over 400 responses received. EU authorities have spent months revising the ESRS, which forms part of broader efforts to streamline reporting requirements and boost competitiveness. In a statement, the European Commission said the newly revised standards reduce the number of data points companies must report by more than 60%.