EU SFDR (Sustainable Finance Disclosure Regulation)
SFDR: RTS, PAI Indicators and Implementation

EU SFDR (Sustainable Finance Disclosure Regulation) SFDR-PAI-Social: PAI Annex I Table 1 - mandatory social and governance indicators 10-14

SFDR RTS Annex I Table 1 mandates 5 social + employee + human-rights + anti-corruption + anti-bribery PAI indicators for FMPs subject to Article 4: PAI 10 violations of UN Global Compact (UNGC) principles + OECD Guidelines for Multinational Enterprises; PAI 11 lack of processes + compliance mechanisms to monitor compliance with UNGC + OECD; PAI 12 unadjusted gender pay gap; PAI 13 board gender diversity; PAI 14 exposure to controversial weapons (anti-personnel mines + cluster munitions + chemical weapons + biological weapons). Each indicator has a specified Annex I formula. The Annex I Tables 2 (climate + environmental opt-in) + Table 3 (social opt-in) require at least 1 additional indicator from each table to be selected by the FMP based on principal-adverse-impacts assessment.

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