Commission issues clarifications on Sustainable Finance Disclosures Regulation (SFDR)

Today, the European Commission has issued clarifications on the Sustainable Finance Disclosures Regulation (SFDR), providing guidance to financial market participants on the regulation’s application, especially with regard to regulatory technical standards effective since January 2023.

The Commission provides responses to questions raised by the European Supervisory Authorities (ESAs). The Q&As also aim to clarify the interaction between the SFDR and other components of the sustainable finance framework.

The SFDR is the first regulation to establish rules on sustainability-related disclosure of information by financial market participants, and the Q&As aim to assist in proper implementation of the rules.

A public consultation is also planned for the autumn to assess the SFDR’s effectiveness and mitigate “greenwashing”.

Read the Commission’s press release here.