Sustainable finance integrates environmental, social, and governance (ESG) factors into financial decision-making to support long-term economic growth while protecting the planet and society. It includes regulations like SFDR, the EU Taxonomy, and green bonds, guiding investors, companies, and financial institutions toward responsible investments. Whether you're navigating compliance, securing sustainable funding, or aligning with ESG goals, understanding sustainable finance is key to future-proofing your business.
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
The EU Taxonomy Regulation (Regulation (EU) 2020/852) establishes a classification system to identify environmentally sustainable economic activities, aiming to direct investments toward the EU's environmental objectives. It defines six environmental objectives: -> Climate change mitigation -> Climate change adaptation -> Sustainable use and protection of water and marine resources -> Transition to a circular economy -> Pollution prevention and control -> Protection and restoration of biodiversity and ecosystems 1/ EU Taxonomy Regulation (EU) 2020/852 is the Regulation that sets the overall framework and objectives for what constitutes "environmentally sustainable" activities in the EU. 2/ The Delegated Acts are the detailed technical regulations that provide the specific criteria and thresholds for various environmental objectives (climate mitigation, water protection, biodiversity, etc.). These Delegated Acts support the implementation of the Taxonomy Regulation. The EU Taxonomy is an essential part of the EU's sustainable finance framework. It serves as a classification system to define environmentally sustainable economic activities based on science-based criteria. Its primary goals are to help investors, companies, and financial institutions identify and finance projects and activities that align with the EU's environmental objectives, such as climate change mitigation and adaptation, circular economy promotion, and biodiversity protection The EU Taxonomy is not a mandatory list for investors to invest in. It does not set mandatory requirements on environmental performance for companies or for financial products. Investors are free to choose what to invest in. However, it is expected that over time, the EU Taxonomy will encourage a transition towards sustainability in order to achieve the EU’s climate and environmental goals. The Taxonomy sets performance thresholds (referred to as ‘technical screening criteria’) for economic activities which: -> make a substantive contribution to one of the above six environmental objectives; -> do no significant harm (DNSH) to the other five, where relevant; -> meet minimum safeguards (e.g., OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights) 🔗 European Commission
Navigating the complexities of sustainability legislation and compliance is about to get easier. Our upcoming AI Assistant, Vicky, is designed to answer your questions and provide clear, actionable insights into regulations and requirements, empowering businesses to stay compliant and drive sustainable practices.
Try Vicky NowThe Sustainable Finance Disclosure Regulation (SFDR) is a regulation established by the European Union aimed at enhancing transparency in the financial services sector regarding sustainability-related information. It is part of the EU's broader sustainable finance agenda, which seeks to promote environmentally sustainable investments and tackle climate change.
Working with a EU based consultancy to create a tool for the Private equity community who are looking to invest in climate positive technologies. designed to bring clarity and operational data to the complexity across the circular value chain. It is designed to support investors with the deal identification, impact due diligence, monitoring and steering the performance of their investment portfolios. and assist both investment institutions, and individual portfolio companies to develop and implement their circular strategy.
My role in working with the CEO to define, design, and test what the tool should do. This included supporting the team to test and market the tool to the PE investor industry, take their feedback and iterate the methodology to create a value proposition that answered an existing gap for PE (Impact) investors. This also included hosting and supporting a series of round tables with key industry stakeholders.
− Regulatory monitoring and engagement: ▪ Track, analyse, and monitor key European regulations impacting the real estate sector, such as CSRD/ESRS, EU Taxonomy, EPBD, EU ETS 2, SFDR, or TNFD. ▪ Assess the impact of these regulations on EPRA members, ensuring they are well-informed and prepared for the reporting requirements. ▪ Actively engage with regulatory bodies by participating in open consultations and workshops to influence the creation of favourable regulations for the real estate sector (European Commission, EFRAG, ISSB). − Collaboration with industry associations: Foster collaboration with key international and European real estate associations such as CRREM, ULI, RICS, GPA, or REESA, to establish and promote common practices within the sector aimed at improving sustainability standards across the industry. − Member support for EPRA sBPR reporting: Guide EPRA members in the understanding and implementation of EPRA's Sustainability Best Practice Recommendations (sBPR) and overarching sustainability metrics. − Partnerships and educational reports: Collaborate with consulting firms (e.g., KPMG, JLL) to develop sector-specific reports and educational materials, aimed at increasing awareness and knowledge around sustainability topics. − Facilitate information sharing & coordinate activities of the Sustainability Committee (investors & property companies) to support informed decision-making and strategic alignment on key initiatives. − Author of the monthly ESG Newsletter that is sent to sustainability leaders within EPRA membership. − Events: Collaborate in the planning and organization of EPRA ’s sustainability-focused events, including sustainability summits, committees, and webinars. Manage aspects such as speaker selection, agenda structuring, prep calls, promotion plan and overall event execution to ensure impactful, high-quality engagements.
FutureWise Partners is a boutique consulting firm that supports corporates in embedding sustainability into their strategic practices. We focus on five key areas: * Country and Sector Research * Finance: Green finance and financial materiality * Strategy: Prioritisation of actions and setting targets * Supplier Engagement: Assessment and engagement through our signature Academy * Circular Economy and ESRS Reporting Guidance Each company is unique, and our partners draw on their diverse experiences from various roles and regions within the sustainability and business sectors to address the specific needs of our clients. We are operating in the UK, Belgium, Austria and Türkiye.FutureWise Partners is a boutique consulting firm that supports corporates in embedding sustainability into their strategic practices. We focus on five key areas: * Country and Sector Research * Finance: Green finance and financial materiality * Strategy: Prioritisation of actions and setting targets * Supplier Engagement: Assessment and engagement through our signature Academy * Circular Economy and ESRS Reporting Guidance Each company is unique, and our partners draw on their diverse experiences from various roles and regions within the sustainability and business sectors to address the specific needs of our clients. We are operating in the UK, Belgium, Austria and Türkiye.
Doconomy's mission is to foster sustainability by providing digital solutions. They offer Åland Index, a cloud-based service for calculating climate impact in financial transactions, and The 2030 Calculator, enhancing product brands' awareness of carbon footprints and enabling consumer-informed choices. Their goal is to empower individuals to contribute to environmental conservation through accessible tools.
Boreal Global Asset Management is a B Corp certified investment company committed to generating value via conscientious investment practices. They place a strong emphasis on both sustainability and financial criteria within their investment approach, striving to deliver optimal results for their clients and the local community while minimizing their environmental footprint.
GENUI is a B Corp certified investment company formed by entrepreneurs and investment experts who prioritize investments that deliver financial gains while also making a positive social and ecological impact. They invest in medium-sized businesses in the German-speaking region and provide these companies with entrepreneurial expertise, a valuable network, and effective governance processes.
Hedgehog Company guides organizations, investors, and developers towards sustainability with a systems-thinking approach and data-driven support. Their threefold strategy—assess, plan, implement—brings clarity to sustainability, making it actionable and achievable. They offer services for SMEs, corporates, and private equity, including product and organizational footprinting and compliance with CSRD and SFDR.
FINGREEN AI pioneers AI-driven ESG analytics and reporting, simplifying impact measurement for businesses. With a transparent methodology and affordability in mind, they offer accessible project management solutions. Align private assets with global standards like SFDR and GHG, avoiding greenwashing and promoting accountability.
The intuitive software solution that helps your business measure, manage and report Environmental, Social, Governance (ESG) performance. For businesses at every stage of their ESG journey.
KEY ESG’s metric library enables companies and investors to comply with all major ESG frameworks and regulations, and stay up to date as they change. SFDR, CSRD, IFRS, EDCI - you name it, our software caters for it.
Proof.io offers a cutting-edge platform for businesses to drive sustainability decisions. Utilizing real-time social and environmental benchmarks from the largest private company dataset, it provides unparalleled insights. Compare your performance against industry benchmarks and peers, receive automated recommendations for impactful decisions, and access a personalized roadmap for achieving purpose-driven results—all within a single platform.
Proof will support you to: 1. automate metric selection in alignment with leading frameworks including SFDR, GHG Protocol, CSRD, IRIS+, and SDGs, 2. efficiently collect and aggregate data across multiple investments, facilities, or suppliers, 3. easily estimate your Scope 1-3 Greenhouse Gas Emissions, 4. build customized reports to showcase your progress and improvement plans, 5. unlock deep insights from your sustainability data, and 6. join a global community of sustainability leaders.
This document outlines the Sustainable Finance Disclosure Regulation (SFDR) and its ESG reporting requirements for financial market participants like banks, asset managers, and REITs. It explains key concepts such as Principal Adverse Impact (PAI) statements, fund classifications (Article 6, 8, 9), and various reporting obligations. Understanding this document is crucial for compliance and transparency in sustainable finance. If you're involved in financial transactions and investments, this guide will help you navigate SFDR regulations effectively. It also provides practical tips for accurate product labeling and data collection.
Whether you need step-by-step guidance or are ready to take on a bigger project, we've got you covered. At SUSTAINOVA®, we combine the expertise of our in-house team with carefully selected external experts tailored to your needs.