Sustainable Finance Disclosure Regulation (SFDR)

The EU Sustainable Finance Disclosure Regulation (SFDR) ((EU) 2019/2088) was published in the Official Journal in December 2019 and forms part of the wider EU Renewed Sustainable Finance Action Plan, to introduce standardised reporting requirements for financial market participants. The regulation sets out product level, as well as entity level disclosure requirements ‘with regard to the integration of sustainability risks and the consideration of adverse sustainability impacts… and the provision of sustainability‐related information with respect to financial products’ (Article 1).

It is important to note that many requirements will be mandatory for firms identified in the regulation as ‘financial participants’ regardless of whether they offer ESG related products, or whether they have individual sustainability objectives.