Eurosif: Implementation of the Sustainable Finance Disclosure Regulation (SFDR)

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Guillaume Périgois
© Guillaume Perigois

Eurosif today released a report to address a number of challenges for financial markets participants, lawmakers, regulators and supervisory authorities in connection with the introduction of SFDR:

The report is divided into three sections. The first section will provide an overview of the market trends in complying under SFDR. The second section will describe the challenges faced by market participants in applying current SFDR provisions. The third section will set out a number of recommendations for how SFDR should be adjusted to address these challenges. The recommendations details possible ways to correct some of the key challenges on how the SFDR is currently applied. Introducing these changes would significantly improve the applicability, readability, and transparency, particularly for retail investors, and therefore strengthen the legitimacy of the SFDR.

Eurosif report

Eurosif Policy Recommendations

  • Disclosure framework used as a standard, making it fit for this role
  • Introduce a new category of products focussing on sustainability risks and opportunities
  • Clarify ‘promoting Environmental and Social Characteristics’
  • Clarify or remove the definition of ‘Sustainable Investment’ (2 options suggested)
  • Consider amending the MiFID Sustainability Preferences delegated regulation

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