If an IORP voluntarily chooses to consider PAIs, then it must use the mandatory PAI indicators, the same ones required for any firm reporting under Article 4(1)(a). This means the IORP must disclose: All mandatory indicators in Table 1, plus at least one from Table 2, and at least one from Table 3. If an IORP does not consider PAIs, it must instead publish a “no consideration” statement under Article 12.
It is common that many IORP voluntarily implement the OECD guidelines and therefore do voluntarily consider adverse impacts. Are they required to use the mandatory indicators?
Financial market participants, including IORPs, that choose to consider principal adverse impacts according to Article 4(1)(a) SFDR or fall within the limits prescribed in Article 4(3)-(4) SFDR (and specified by the Commission in Question IV.1) are required to disclose a statement on due diligence policies regarding the principal adverse impacts of investment decisions on sustainability factors, further specified in Chapter II and Annex I of the Delegated Regulation. Such financial market participants would be required to disclose the principal adverse impacts under the indicators provided in Table 1 of Annex I of the Delegated Regulation and at least one indicator from Table 2 and one indicator from Table 3, as prescribed in Article 6 of the Delegated Regulation. If a financial market participant, including IORPs, do not consider the adverse impacts of their investment decisions on sustainability factors under Article 4(1)(b) SFDR, they should from 1 January 2023 publish a statement according to Article 12 of the Delegated Regulation.
European Supervisory Authorities (ESAs)
