Key takeaways
Attention, Asset Managers. A new version of the European ESG Templare (EET) was announced in the final days of December 2023.
If you shared EET files of your financial products containing data from 2023, aiming to support other financial institutions with fulfilling their SFDR requirements, then you should update such EET files using V 1.1.2 by no later than March 2024. As FinDatEx explains on its website: "V 1.1.2 should be delivered before the end of March 2024 for SFDR entity level reporting."
Here is a summary of the EET V 1.1.2:
- Two new data fields: "Frequency of PAI" (103, Mandatory) and "snapshot list of invested countries in the sovereign sub-part of the portfolio" (616, Conditional);
- Some data fields (specifically "transitional scope 1, 2") were changed from from "Mandatory" (M) and/or Conditional" (C) to "Optional" (O);
- Several typo corrections
This is the 4th version of the EET. The first one was made public in March 2022. The previous update (V 1.1.1) was announced in March 2023 and included 27 new fields.
What is the European ESG Template (EET)?
The European ESG Template (EET) is one of many templates created by FinDatEx, an industry-led group of representatives of the European financial services sector that has the ambition of coordinating, organising and carrying out standardization work to facilitate the exchange of data between stakeholders in the application of European financial markets legislation.
The EET itself is a template Excel file with over 600 lines which should be completed by Asset Managers to share sustainability-related information with stakeholders such as distributors, funds of funds, and institutional investors.
The EET is not at all related to any regulation and, therefore, is not mandatory. However, its adoption has increased over the past 18 months. For reference, as of December 2023, about 250,000 EET files of different financial products had been submitted to MorningStar.
Datia's team prepared an article to help you put together an EET file for your financial product.
You can also watch the recorded webinar "Pain-free EET: Showcase the sustainable profile of your products".
How Datia can help
Datia offers a tool that takes care of the majority of the heavy lifting for Asset Managers and Management Companies (ManCos). We transformed the EET Excel template into a questionnaire that is intuitive and easy to complete. The questionnaire is frequently updated based on the latest available version of the EET.
At Datia's interface, about half of the EET questions are automatically pre-filled, considering data already available about your fund in Datia's platform. For example: all the mandatory PAI indicators, additional PAIs considered by the fund and their indicators, as well as the coverage for the calculations.
Thanks to this solution, Datia’s customers can create a full EET for Article 6 funds in a few minutes. The process takes no more than one hour for Article 8 and 9 funds, given that their pre-contractual and periodical reports were previously produced.
Reach out to our team of experts to understand how Datia can help you with creating EET files for your financial products.
