Sustainable Finance Disclosure Regulation (SFDR)
Regulation (EU) 2019/2088 (Sustainable Finance Disclosure Regulation -SFDR) aims to provide greater transparency about the sustainability of financial products, in order to direct private funds towards sustainable investments, while preventing “green washing”. Its gradual implementation began in March 2021.
What is SFDR
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 requires sustainability-related disclosures in the financial services sector (known as Sustainable Finance Disclosure Regulation - SFDR).
The purpose of the Regulation is to establish harmonised rules for financial market participants and financial advisers on transparency with regard to the integration of sustainability risks and the consideration of adverse sustainability impacts in investment decision-making processes and the provision of sustainability-related information with respect to financial products.