Context
With the new appetite for environmental, social, and governance ("ESG") aligned companies and investment products, a series of global commitments and initiatives promoting changes in the current institutional, economic and financial models became the focus of the EU. Through the SFDR, one of the EU Action Plan main reforms, financial market participants (FMPs) and financial advisors (FAs) are required to fulfill multiple disclosures requirements including to report on their “adverse impacts on sustainability”. Principal adverse impacts (PAI) consists of a list of sustainability factors, including a set of mandatory and optional PAI indicators relating to environmental and social topics, that FMPs and FAs might need to disclose as an attempt to improve transparency.
Challenges
The biggest challenge for financial market participants and financial advisors is the fulfillment of the PAI requirements notably due to the difficulties of data availability, complexity of the reporting standards and the lack of guidance on how to interpret and assess each PAI indicator.
How it works
Clients' portfolios are uploaded onto the tool which will consequently generate a PAI report as per RTS at entity level by aggregating all portfolio compositions. Additionally, the PAIpro tool provides an overview of PAI data availability based on the composition of said portfolios. There are two other options:
full access to a printable and downloadable version of the PAI report as per RTS;
full access to a simulation tool for PAI Assessment.
Your benefits
Overview of data availability for each PAI indicators (mandatory and optional)
Access to the standardized PAI report through our interactive online platform
Access to the simulation tool of PAI indicators and portfolios composition
Reporting at quarterly basis, with a final yearly report ( as requested by the regulation)
Value
Our price offer is considered on a case-by-case basis, depending on the scope of assistance for our clients.
Sponsors
- Benjamin Gauthier
Partner, PwC Luxembourg - Marta Acabado Oliveira
Senio Associate, PwC Luxembourg
