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Sustainable Finance Disclosure Regulation (SFDR) – The Path to Sustainable Financial Decisions

The Sustainable Finance Disclosure Regulation (SFDR (EU) 2019/2088) is a milestone on the path to a more sustainable financial world. Since its introduction in March 2021, the SFDR aims to direct capital flows towards sustainable investments and provide investors with transparent information about the impact of investment decisions on the environment and society. With Planet Now, you can navigate SFDR compliance confidently and turn regulatory requirements into concrete competitive advantages.

Who is affected?

The SFDR applies to all financial sector players, including asset managers, insurers, fund managers, securities firms, and providers of financial products in the EU. Transparent information about sustainability risks and their potential impact is essential for both institutional investors and investment funds.

Transparency and Fair Competition

The SFDR sets clear transparency requirements for financial market participants and their products, aiming to create a level playing field. A key requirement is the publication of a Principle Adverse Impacts Statement (PAI Statement) at the company level, in which the main adverse impacts of investment decisions on sustainability factors, such as the carbon footprint, are considered.

SFDR Requirements at the Company and Product Level

The SFDR distinguishes between disclosures on two levels:

Company Level: Financial market participants must disclose how they integrate environmental and social risks into their investment decisions and what measures they take to minimize negative impacts.
Product Level: The SFDR requires financial products to disclose the extent to which they consider sustainability factors and the potential impacts on environmental and social aspects. Depending on the product category (Article 6, 8, or 9), there are specific disclosure requirements to ensure that investors can clearly understand the risks and opportunities associated with the investment.

Additional Disclosure Obligations for Sustainable Financial Products

For financial products that are marketed as environmentally or socially sustainable (Article 8) or aim at sustainable investment (Article 9), additional disclosure obligations apply. Providers of such products must specifically report on the achievement of their sustainability goals. These requirements help prevent greenwashing and provide clear information to investors.

With Planet Now as your partner, SFDR compliance becomes a strategic opportunity. Our services include:

SFDR Gap Analysis: We review your current practices against the SFDR requirements, identify areas for improvement, and develop a tailored plan to close existing gaps.
Continuous Compliance Support: We stay by your side to ensure that your SFDR disclosures are always up-to-date.
Integration of Sustainability Risks: We assist you in effectively embedding sustainability risks into your investment decision-making processes and risk management systems.
Classification and Disclosure of Financial Products: We help you correctly classify your products according to SFDR requirements (Article 6, 8, or 9) and provide the necessary information.
Workshops and Training for Your Team: In practical workshops, we prepare your team for the SFDR and impart the knowledge needed to implement the regulation effectively.

The SFDR is an opportunity to position yourself as a pioneer in sustainable investments. Take this chance to align your investment strategies with sustainable goals. Planet Now offers tailored support on your path to SFDR compliance and sustainable growth.