Stay on Top of SFDR

Sustainable Finance Disclosures Regulation (SFDR), mandatory ESG disclosure obligations, was introduced by the European Union to improve transparency in the market for sustainable investment.

Regulators hope that it will help provide certainty and guidance where there is confusion, reduce heterogeneity, and make greenwashing in the area of sustainable investing much more difficult.

As the rules continue to evolve and take shape, we are introducing a new series of SFDR short contents.

Principal Adverse Impacts – Monitoring, measuring and reporting how investments affect the environment and our society

Since the beginning of 2023, asset managers are required to disclose how they are considering the Principal Adverse Impacts in their investment decisions, more precisely the potential negative impacts that investments can have on the environment and society. In this document, you will learn:

  • What are the Principal Adverse Impacts?
  • What are their objectives?
  • How should they be implemented?
  • Why is their implementation sometimes complex?
  • How can investors use PAIs as an opportunity to investigate their product providers’ approaches to ESG indicators, and assess the robustness and granularity of their methodologies?

Read our fifth information note on the SFDR

To be aligned, or not to be aligned?

The fourth edition of our series looks at the EU Environmental Taxonomy.

Taxonomy is central to the SFDR as it sets out the criteria for economic activities to be considered “environmentally sustainable”. Our paper dives into these criteria and gives background on how Taxonomy fits in a tryptic with CSRD and SFDR – hence the difficulties caused by unsynchronized agendas. It also provides a few tips for our investors, to help them check whether their asset management partner is fit for navigating this complex regulatory environment.

Read our fourth information note on the SFDR

Learning through practice

The third edition of our series focuses on the integration of SFDR 2 in MiFID.

Since August, MiFID II has required financial institutions to take into account clients’ preferences in matters of sustainability. How were these preferences determined? How should the responses be interpreted? How can they be implemented when the specifications regarding the application of the regulations will not be published until 2023? Many questions remain. We provide a review of the situation.

Read our third information note on the SFDR

Looking for a Compass

In the second document we focus on the Regulatory Technical Standards, referred to as SFDR Level 2, which will enter into force early 2023. They complement the Level 1 text, and give further guidance regarding the content, methodologies and presentation of information of the SFDR disclosure obligations.

Read our second SFDR Briefing Paper

SFDR Briefings

Breaking the Waves

In the first one, we examine questions around FIVE key points. Learn the answers and be on top of sustainable regulatory evolution:

  • Regulatory Technical Standards (RTS)
  • Clarifications about article 9 and 8 products
  • SFDR and EU Taxonomy integration into MiFID II
  • The European ESG reporting Template (EET)
  • How is the EU Taxonomy used for SFDR?

Read our first SFDR Briefing Paper

New content will be available every month on this page. Stay tuned!

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