Sustainable Finance Disclosure Regulation (SFDR)
Regulation (EU) 2019/2088 of the European Parliament on sustainability‐related disclosures in the financial services sector, with the aim of increasing transparency regarding the sustainability of financial products.
Link: Regulation (EU) 2019/2088
Attention! This website is still an ongoing project. Therefore, the content is currently under development.

Content of this page:
Please cite this register in conjunction with the following article:
Hummel, K., Jobst, D., 2022. The Current State of Corporate Sustainability Reporting Regulation in the European Union. https://ssrn.com/abstract=3978478.
Overview
The SFDR was adopted by the European Parliament and the Council with the aim of increasing transparency regarding the sustainability of financial products. Along with the Taxonomy Regulation, the SFDR forms an integral part of the EU Action Plan on Financing Sustainable Growth (COM(2018) 97 final). The Regulation introduced harmonized EU-wide disclosure rules regarding the sustainability of financial products.
Adoption of the regulation: | November 2019 |
Application: | The SFDR has gradually been phased in, with the first disclosure requirements being effective since 10 March 2021. |
Scope
The SFDR applies to ...
financial market participants (e.g., a credit institution or investment firm providing portfolio management) and
financial advisers (e.g., a credit institution or investment firm providing investment advice)
Disclosure requirements
Entity level:
Website disclosure on:
An entity’s policies for integrating sustainability risks in the investment decision‐making process or financial advice (Article 3)
Due diligence policies about how an entity considers principal adverse impacts (PAIs)1 on sustainability factors (Article 4); complyor-explain for smaller financial market participants
Integration of sustainability risks in remuneration policies (Article 5)
Product level:
Precontractual disclosure:
Integration of sustainability risks in investment decision/advice; assessment of impacts of sustainability risks on financial returns (Article 6); comply-or-explain
For financial market participants that consider PAIs: consideration of the product’s PAIs on sustainability factors (Article 7); comply-or-explain
For products that promote ‘environmental’ or ‘social’ characteristics (Article 8): information on how the characteristics are met as well as disclosure on alignment with the EU Taxonomy
For ‘products with sustainable investment objective’ (Article 9): explanation of how the objective is met as well as disclosure on alignment with the EU Taxonomy
Website disclosure for Article 8 and 9 products:
Summary
Description of the characteristics/objectives and methodologies
The precontractual disclosures provided for Article 8 and 9 products
Information in periodic reports:
Information regarding the consideration of PAIs on sustainability factors (Article 7)
For Article 8 products: information on the extent to which characteristics are met
For Article 9 products: overall sustainabilityrelated impact in comparison to any used reference index and a broad market index
Utilization of information in management reports/nonfinancial statements (NFRD) possible
______________
1 PAIs are ‘effects on sustainability factors that are negative, material or likely to be material’
Regulatory technical standards
In April 2022, the European Commission also adopted a delegated regulation on regulatory technical standards (RTS) specifying the details of the content, methodologies and presentation of disclosures (Commission Delegated Regulation (EU) 2022/1288). Those standards are set to apply from 1 January 2023 onward.
Updates
Updates to this page:
20 March 2023 | Update to the current status of the SFDR. |