SFDR
Sustainable Finance Disclosure Regulation (SFDR) is an EU regulation designed to enhance transparency in the market for sustainable investment products and to curb greenwashing. It obliges financial market participants and financial advisers to disclose how sustainability risks are integrated into investment decisions, and how sustainability factors and adverse impacts are considered in product descriptions and marketing.
Scope: Applies to asset managers, investment firms, banks, insurers, pension funds operating in the EU, and to
Product classification: Article 8 funds promote environmental or social characteristics (or have them as an investment
Disclosures: Entities must disclose how sustainability risks could affect returns (and the likely material negative impacts
Impact and enforcement: SFDR is part of the EU's sustainable finance framework, linking with the EU Taxonomy