Eurosif Report 2022

28 June 2022

EU sustainable Finance & SFDR: making the framework fit for purpose


Eurosif is deligthed to share its new report focusing on the implementation of the Sustainable Finance Disclosure Regulation (SFDR). The purpose of this report is to account for developments in the EU Market for investment products since the application of the SFDR and recommend adjustments to ensure the framework can be adapted to the use the market has make of it.

The report is divided into three sections. The first section will provide an overview of the market trends in complying under SFDR. The second section will describe the challenges faced by market participants in applying current SFDR provisions. The third section will set out a number of recommendations for how SFDR should be adjusted to address these challenges. The recommendations details possible ways to correct some of the key challenges on how the SFDR is currently applied. Introducing these changes would significantly improve the applicability, readability, and transparency, particularly for retail investors, and therefore strengthen the legitimacy of the SFDR.


Eurosif Policy Recommendations
  • Disclosure framework used as a standard, making it fit for this role
  • Introduce a new category of products focussing on sustainability risks and opportunities
  • Clarify ‘promoting Environmental and Social Characteristics’
  • Clarify or remove the definition of ‘Sustainable Investment’ (2 options suggested)
  • Consider amending the MiFID Sustainability Preferences delegated regulation