The Sustainable Finance Disclosure Regulation (or SFDR) is one of the deliverables of the EU’s action plan launched in 2018 to redirect capital flows towards more sustainable activities.  SFDR requires financial market participants and financial advisers to  make disclosures on the integration of sustainability risks, on the consideration of adverse sustainability impacts, on sustainable investment objectives, or on the promotion of environmental or social characteristics, in their investment decision‐making and in advisory processes, to end investors.

SFDR sets out the rules which define the nature and form of sustainability-related information that should be disclosed with respect to a given financial product.

SFDR does not define what a sustainable financial product is. The regulation aims to ensure that any product marketed as ‘sustainable’ provides specific information on its environmental, social and governance (ESG) credentials.

SFDR creates two categories of sustainable financial products, defined in article 8 and 9 of the regulation, with specific disclosures applicable to them.

Sustainability is at the heart of Candriam’s investment approach. A number of financial products managed by Candriam have been classified as either article 8 or article 9 products. The following pages provide more information about the regulation and the way it has been implemented by Candriam.