The European ESG Template Explained

The European ESG Template (EET) was developed by FinDatEx to create a consistent way of exchanging ESG data across the investment distribution chain. Before its introduction, asset managers, insurers, distributors and platforms often requested similar sustainability information in different formats, creating inefficiencies and increasing reporting burdens. Although the EET is voluntary rather than regulatory, it has become the market standard for ESG data exchange across Europe.

The EET helps firms share the information needed to support key regulatory requirements, particularly under SFDR, MiFID II and IDD. It enables distributors and advisers to access consistent data on sustainability characteristics, sustainable investments, EU Taxonomy alignment and Principal Adverse Impacts (PAIs), helping them assess products and match them to investors' sustainability preferences. However, the EET does not cover all ESG-related frameworks and may need to be supplemented with additional disclosures for other regulatory requirements.

The EET is a detailed spreadsheet completed for individual financial products. It contains six main categories of information: dataset details, manufacturer information, product information, Principal Adverse Impact indicators, screening criteria and country-specific requirements. Together, these sections provide a standardised view of a product's sustainability characteristics, investment approach and regulatory disclosures.

Despite improving consistency, the EET remains a voluntary industry standard, meaning firms may interpret certain fields differently. The template also evolves regularly to reflect regulatory developments, making version management important. As the EET is closely linked to SFDR, any significant changes to the regulation are likely to result in future updates to the template itself.

This is much closer to the length and density of the summaries you've used in the JLL and sustainable finance pathways.