The Disclosure Principles constitute a declaration of common understanding among the SFWG members on their minimum expectations in this area in their respective jurisdictions. Members of the SFWG will consider the development and implementation of disclosures frameworks in line with the Principles, if they have not already done so. Reporting Entities should also be aware of the Principles as they relate to current and future efforts undertaken by Reporting Entities in the area of ESG disclosures.
While the Disclosure Principles are endorsed by the entire SFWG, it remains at the discretion of each of the Authorities to determine how the Disclosure Principles may be translated into their respective regulatory frameworks. This means that the relevant Authority, when implementing disclosure requirements based on these Disclosure Principles, may decide on matters including but not limited to:
which Reporting Entities the requirements apply to;
the Reporting Entity’s type, profile or size threshold (if any) that must be crossed before disclosure is applicable;
the respective disclosure requirements to be followed;
the reporting frequency for each disclosure requirement;
whether to use voluntary, ‘comply or explain’ or mandatory avenues for given Reporting Entities;
whether additional requirements or modalities relevant for specific types of Reporting Entities are necessary to improve transparency; and
the timeline to implement disclosure requirements in its jurisdiction.