Sustainable Finance Disclosures Regulation (SFDR), mandatory ESG disclosure obligations, was introduced by the European Union to improve transparency in the market for sustainable investment.
Regulators hope that it will help provide certainty and guidance where there is confusion, reduce heterogeneity, and make greenwashing in the area of sustainable investing much more difficult.
As the rules continue to evolve and take shape, we are introducing a new series of SFDR short contents.
To be aligned, or not to be aligned?
The fourth edition of our series looks at the EU Environmental Taxonomy.
Taxonomy is central to the SFDR as it sets out the criteria for economic activities to be considered “environmentally sustainable”. Our paper dives into these criteria and gives background on how Taxonomy fits in a tryptic with CSRD and SFDR – hence the difficulties caused by unsynchronized agendas. It also provides a few tips for our investors, to help them check whether their asset management partner is fit for navigating this complex regulatory environment.
Read our fourth information note: SFDR Taxonomy