European sustainable finance legislation: The journey so far

European sustainable finance legislation: The journey so far

We are now in the third year of implementation of the European Union’s ambitious sustainable finance regulatory agenda. The industry has made enormous progress in understanding the new requirements and coalescing around a common understanding of key concepts, such as ‘double materiality’. But as Brunno Maradei explains, many challenges remain.

Launched in March 2021, the purpose of the EU’s Sustainable Finance Disclosure Regulation (SFDR) was to require more standardized disclosures from market participants on their practices. The intention was to provide greater awareness of the sustainability risks that could affect the value of portfolios, along with the ‘adverse impacts’ on society and the environment. SFDR also attempted to standardize disclosure on the features and objectives of products promoting sustainability, by providing templates for products according to a self-classification.








Important Information

SFDR update (August 2023).pdf

(337KB) PDF

More about the authors

Brunno Maradei, CFA Global Head of Responsible Investment

Brunno Maradei, CFA, is global head of responsible investment.

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