| A European Union law in force since March 2021, the SFDR specifies how financial market participants must disclose sustainability information. The SFDR framework is designed to help investors (especially those who want to put their money into companies and projects supporting sustainability objectives) make informed choices. The SFDR is also designed to allow investors to properly assess how sustainability risks are integrated in the investment decision process. In this way, the SFDR contributes to one of the EU’s major political objectives: attracting private funding to help Europe make the shift to a net-zero economy. The SDFR was amended in November 2025 to address shortcomings in the framework. The changes aim to deliver simpler and more usable information for investors, while reducing disclosure requirements and compliance costs for financial actors. Source: European Commission. Sustainability-related disclosure in the financial services sector (2025) and EU Regulation 2019/2088. |
Sustainable Finance Disclosure Regulation (SFDR)
