Report
While the proposed Sustainable Finance Disclosure Regulation (SFDR) revisions are a step forward, ensuring clear rules, credible product standards, and meaningful disclosures will be essential to build trust, prevent greenwashing, and make sustainable investment genuinely effective.
Finance Watch welcomes the Commission’s proposal for a revision of the Sustainable Finance Disclosure Regulation (SFDR). The SFDR sets rules for how financial products report on sustainability and is central to guiding investors toward genuinely sustainable options.
Minimum criteria for the SFDR product categories, the distinction between transition and sustainable investments, and improvements in the clarity of sustainability disclosures will support the transparency and the understandability of the framework for retail investors. The introduction of the notion of “sustainability-related financial product with impact” will also contribute to better integrating impact finance in the sustainability framework.
Finance Watch still highlights several limitations in the proposed framework, particularly regarding the need for clear and intuitive product categories and the interoperability with the consideration of sustainability preferences. Finance Watch also stresses the technical complexity of the topic and recommends co-legislators to carefully assess the product criteria and to closely cooperate with the European Supervisory Authorities throughout the legislative process.
