On May 12, 2021, ISDA responded to question four of a joint consultation paper by European Supervisory Authorities on taxonomy-related sustainability disclosures. ISDA recommends the inclusion of derivatives in the proposed key performance indicators (KPIs) for disclosing the extent to which investments are aligned with the taxonomy, but only where they are used to attain the environmental or social characteristics promoted by the financial product or the sustainable investment objective of the financial product. Additionally, ISDA suggests this approach should be applied consistently across all relevant calculation KPIs in respect of Non-Financial Reporting Directive entity reporting under article 8 of the Taxonomy Regulation, as differing interpretations could create investor confusion, result in fragmented outcomes and minimize the potential for evolution of risk management practices in the environmental, social and governance space going forward.
Documents (1) for ISDA Responds to ESAs on Taxonomy-related Sustainability Disclosures
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Response to FASB on KPIs for Business Entities
On April 30, ISDA submitted a response to the Financial Accounting Standards Board’s (FASB) proposal on financial key performance indicators (KPIs) for business entities. In the response, ISDA addressed the implications of KPI standardization, its potential impact on financial reporting...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Response on Commodity Derivatives Markets
On April 22, ISDA and FIA submitted a joint response to the European Commission’s (EC) consultation on the functioning of commodity derivatives markets and certain aspects relating to spot energy markets. In addition to questions on position management, reporting and...
Episode 50: The Value of Derivatives
A new report from ISDA shows that companies all over the world use derivatives to alleviate uncertainty, transfer risk and enhance profitability. ISDA discusses the findings with Boston Consulting Group’s Roy Choudhury. Please view this page via Chrome to access...