The European Supervisory Authorities report steady improvement in principal adverse impact (PAI) disclosures under the SFDR, especially among larger financial groups. However, disclosures often lack quantifiable actions, and “non-consideration” statements remain generic. The ESAs recommend clearer, shorter, and machine-readable disclosures, more proportional requirements, and less frequent reporting to enhance quality and relevance. Further regulatory guidance may follow to address persistent shortcomings.