Why is "Investee countries subject to social violations" difficult for industry to calculate?

SFDR Delegated Regulation: Annex I, Table 1, Indicator 16

In simple words

The indicator is challenging because countries collect and define social violation data in very different ways. As a result, financial market participants struggle to apply the same criteria consistently across investee countries.

Official question

In Table 1, indicator 16 (Investee countries subject to social violations), industry requests guidelines to ensure comparability, as there is a variety of approaches to this and lack of underlying data.

Official answer

The Annex to the recently published proposal for a Directive on corporate sustainability due diligence COM(2022) 71 provides helpful examples of typical social violations that investee countries may be in violation of.

Answered by

European Comission

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