UCITS Delegated Directive: Sustainability Risks

This Directive amends Directive 2010/43/EU to require management companies of undertakings for collective investment in transferable securities (UCITS) to integrate sustainability risks and sustainability factors into their investment decisions, internal control and risk management processes. By extending definitions and strengthening organisational requirements, the identification of conflicts of interest and due diligence obligations, it ensures investor protection and consistency with the EU sustainable finance strategy. It applies to management companies and investment companies, with the principle of proportionality applied according to their size and complexity.