The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – together, the ESAs) has published its fourth annual report on how financial firms are voluntarily disclosing principal adverse impacts (PAIs) under the Sustainable Finance Disclosure Regulation (SFDR). The report shows steady progress in the quality of these disclosures, both at company level and product level.

As in previous years, the ESAs collected input from National Competent Authorities and carried out their own review of publicly available PAI statements. This included disclosures from asset managers, insurers, occupational pension funds, and a sample of financial products.

The 2025 report highlights that many financial market participants are making stronger efforts to provide complete and compliant information under the SFDR, with overall improvements in quality.

Consistent with earlier findings, the ESAs note that firms belonging to large multinational groups usually publish more detailed disclosures. In contrast, smaller firms often mix general ESG or marketing information with their SFDR disclosures.

National Competent Authorities confirmed that some firms have adopted good practices recommended in earlier reports and have improved their reporting as a result.

Finally, the 2025 report includes recommendations for National Competent Authorities to strengthen their supervision of PAI disclosures, and for the European Commission to consider as part of the upcoming review of the SFDR.