ESG Developments in the European Union—Sustainability Related Disclosures for AIFMs and AIFs
Compliance with the European Union’s (“EU”) regulation on sustainability-related disclosures in the financial services sector (the “EU ESG Disclosure Regulation”) will be required beginning March 10, 2021 for certain EU and non-EU alternative investment fund managers (“AIFMs”). The EU ESG Disclosure Regulation requires transparency with regard to the integration of sustainability risks and the consideration of adverse sustainability impacts in an AIFM’s processes and the provision of sustainability-related information with respect to alternative investment funds (“AIFs”).