On 14 November 2022, the Central Bank of Ireland (the “Central Bank”) published an Industry Communication entitled “Sustainable finance and the asset management sector: Disclosures, investment processes & risk management”. The communication coincided with its seminar on the Sustainable Finance Disclosures Regulation for the asset management sector at which Derville Rowland, Deputy Governor delivered a speech outlining the Central Bank’s approach to the implementation of the ESG regulatory framework for the asset management sector.

This industry communication sets out the findings of the Central Bank’s recent gatekeeper review of investment fund disclosures, taking into account the requirements of SFDR Level 1 and the Taxonomy Regulation. It also highlights the Central Bank’s expectations around the implementation in the asset management / funds sector of SFDR Level 2 and the Taxonomy Regulation and provides a roadmap for how the Central Bank intends to supervise these requirements in the future. The aim of publishing the findings of the Central Bank’s gatekeeper review is to inform the sector of the main disclosure issues encountered to date and outline the risks that the Central Bank has observed in terms of potential greenwashing or areas where there is a lack of transparency or clarity.

The communication sets out the Central Bank’s expectations generally, helpfully outlining areas of identified good practice, as regulators and industry prepare for the introduction of SFDR Level 2.