The EU has agreed to lower the ESG reporting requirements for asset management companies.

According to the revised disclosure requirements, asset management companies in Europe are not required to report ESG data for all assets they hold. The European Commission stated that asset management companies managing investment portfolios based on a "trust relationship" with clients and according to the "mandate received from clients" are not required to provide such information. This is outlined in the revised version of the EU Sustainable Finance Disclosure Regulation, which was published on Friday. These requirements, formally known as the European Sustainability Reporting Standards, detail how companies should comply with the EU Corporate Sustainability Reporting Directive. The Commission conducted a public consultation on its proposed "empowerment law" draft, which was released in May and received over 400 responses. EU authorities have spent several months revising the ESRS, as part of a broader effort to streamline reporting requirements and enhance competitiveness in the EU. The European Commission stated in a release that the new revised standards reduce the number of data points that companies are required to report by over 60%.