In a joint letter signed by leading civil society organisations, Finance Watch calls on the European Commission to strengthen the Sustainable Finance Disclosure Regulation (SFDR) and restore public trust in sustainable investing.
Finance Watch urges the Commission to respond to the expectations of EU citizens, retail investors, and financial stakeholders by introducing strong safeguards against greenwashing, notably by excluding companies involved in new fossil fuel projects from all SFDR product categories. The Sustainable Finance Disclosure Regulation (SFDR) is a key EU rule designed to improve transparency around how financial products consider environmental and social factors. By ensuring that investors can distinguish genuinely sustainable investments from greenwashed ones, the SFDR plays a central role in building trust. This trust is vital for the success of the Savings and Investment Union (SIU).
The Savings and Investment Union (SIU) is a key European initiative designed to channel citizens’ savings into productive, long-term investments that support innovation, green technology, and economic growth. For this system to work, ordinary Europeans need confidence that their money isn’t quietly funding activities that harm the planet.
According to EU surveys, more than 60% of Europeans want their savings and investments to avoid damaging the environment. Yet widespread greenwashing — misleading claims about how ‘green’ investment products really are — threatens to undermine that trust.
That’s why Finance Watch calls for a stronger SFDR that includes clear and measurable sustainability criteria, strict exclusion rules, and credible stewardship practices:
- Positive screening criteria: With minimum thresholds based on measurable indicators in line with the Commission Recommendation on transition finance, the report from the Platform on Sustainable Finance, and the Taxonomy.
- Strong and updated exclusion criteria: Activities incompatible with EU objectives, particularly fossil fuel expansion, should be excluded from all SFDR categories.
- Stewardship criteria: Credible stewardship strategies need measurable objectives and enforcement mechanisms. Such criteria are increasingly common market practice, ensuring market continuity. Moreover, sustainable fund categories will remain optional, allowing flexibility elsewhere.
A robust and transparent SFDR would not only protect consumers but also boost Europe’s competitiveness and attract more capital into clean, future-focused industries.
As the EU strives to decarbonise its economy and strengthen its global leadership in sustainable finance, trustworthy sustainability must be the foundation of Europe’s financial future.
To achieve key EU priorities – boosting innovation, increasing European industry’s competitiveness, and decarbonising the economy – a strong and reliable framework for sustainable investment products needs to be put in place.
Open Letter to the European Commission - Consumers need an ambitious Sustainable Finance Disclosure Regulation to gain trust in the Savings and Investment Union
