The current implementation of the Sustainability-related Financial Disclosure Regulation (SFDR)

The Sustainability-Related Financial Disclosures Regulation (SFDR) is the centrepiece of the sustainable finance strategy for funds and other financial products. However, its provisions are too complex, do not work as intended, and interact insufficiently with provisions shaping corporate reporting, indexes, or client preferences. A revised SFRD should include more recognisable product labels or categories, enable and foster transition investments, smoothly interact with corporate reporting, and expand the scope of disclosure obligations. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Economic and Monetary Affairs (ECON).