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Principal Adverse Impacts (PAI)

Under the SFDR, the most significant negative effects of investment decisions on sustainability factors, such as emissions or human rights, which certain financial firms must disclose.

EcoAppraise context

Statements that a fund "considers" adverse impacts should match its PAI disclosures.

Related terms

SFDR; ESG

Enforcement cases

Joint Committee Report on Principal Adverse Impact disclosures under the Sustainable Finance Disclosure Regulation

ESAs publish 2024 Joint Report on principal adverse impacts disclosures under the Sustainable Finance Disclosure Regulation

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