Sustainable Finance Disclosure Regulation
The Sustainable Finance Disclosure Regulation (SFDR) is an EU regulation aimed at improving transparency in the financial services sector regarding sustainability risks and impacts. It applies to financial market participants and financial advisers, promoting sustainable investment across the EU.
Key Objectives:
1/ Transparency on Sustainability Risks
-> Requires financial entities to disclose how they integrate sustainability risks into their investment decision-making or advice processes
2/ Product Categorization
-> Article 6: Products that do not actively promote sustainability
-> Article 8: Products promoting environmental or social characteristics
-> Article 9: Products with sustainable investment as their objective
3/ Standardized Reporting
-> Entities must report sustainability-related disclosures on their websites, in pre-contractual documents, and in periodic reports, using templates and data points specified by regulatory technical standards (RTS)
4/ Greenwashing Prevention
-> Ensures financial products are marketed transparently to prevent misleading claims about their sustainability
Alignment with EU Taxonomy:
SFDR aligns with the EU Taxonomy Regulation by requiring additional disclosures about whether and to what extent investments contribute to EU-defined environmental objectives.
🔗 EC, ESMA, ESA
Key Objectives:
1/ Transparency on Sustainability Risks
-> Requires financial entities to disclose how they integrate sustainability risks into their investment decision-making or advice processes
2/ Product Categorization
-> Article 6: Products that do not actively promote sustainability
-> Article 8: Products promoting environmental or social characteristics
-> Article 9: Products with sustainable investment as their objective
3/ Standardized Reporting
-> Entities must report sustainability-related disclosures on their websites, in pre-contractual documents, and in periodic reports, using templates and data points specified by regulatory technical standards (RTS)
4/ Greenwashing Prevention
-> Ensures financial products are marketed transparently to prevent misleading claims about their sustainability
Alignment with EU Taxonomy:
SFDR aligns with the EU Taxonomy Regulation by requiring additional disclosures about whether and to what extent investments contribute to EU-defined environmental objectives.
🔗 EC, ESMA, ESA
- Categories
- SFDR (Sustainable Finance Disclosure Regulation)Sustainable Finance
- Legislation instrument
- Regulation
- Pillars
- EnvironmentalSocialGovernance
- Audience
- Business
- Legislation status
- In Force
- Applicable area
- EU
- Regulation (EU) 2019/2088
Timeline
- ProposedMay 24, 2018
- ApprovedMar 7, 2019
- AdoptedNov 27, 2019
- PublishedDec 9, 2019
- In ForceMar 10, 2021
- In ApplicationJan 1, 2023
-> March 2021: Initial requirements came into force
-> January 2023: Application of detailed Regulatory Technical Standards (RTS) specifying reporting templates
-> January 2023: Application of detailed Regulatory Technical Standards (RTS) specifying reporting templates
General information
About Law
EnglishInformation
Overview
English
Q&A1.11 MB
EnglishQ&A
Regulatory Instruments
Regulatory Technical Standards (RTS)3.4 MB
EnglishDelegated Act
Amending and Correcting the Regulatory Technical Standards (ITS)16.3 MB
EnglishRegulation
Methodologies and Disclosures3.4 MB
EnglishDelegated ActIn ForceJan 1, 2023
Amendment to SFDR Disclosures16.3 MB
EnglishDelegated ActIn ForceJan 1, 2023
European Sustainability Reporting Standards (ESRS)3.67 MB
EnglishDelegated ActIn ForceJan 1, 2024
Supportive documents
Annex I: Template principal adverse sustainability impacts statement390 kB
EnglishInformation
Guidelines on funds’ names using ESG or sustainability-related terms714 kB
EnglishSupportive document
SFDR regulation & compliance in practice
EnglishGuidance
SFDR Instructions For Reporting874 kB
EnglishTemplate
PAI disclosures under the SFDR725 kB
EnglishInformation
GRESB SFDR Real Estate Instructions1.32 MB
EnglishSupportive document
SFDR Datapoints in ESRS14.5 kB
EnglishSupportive document