Transparency code
Building on the European Transparency Guidelines introduced in 2004, the European SRI Transparency Code was launched in May 2008 to enhance transparency and accountability regarding funds’ sustainable and responsible investment (SRI) policies and practices for end investors across Europe. The Transparency Code was gradually phased out during 2023 and, as of January 2024, is no longer active.
IMPORTANT NOTICE
Towards the end of 2022, the Eurosif Board decided to phase out the Transparency Code throughout 2023.
Why Eurosif has decided to phase out the Transparency Code
When it was launched in 2008, the European SRI Transparency Code played an important role in improving transparency in sustainable investing. It provided a common framework that enabled SRI funds to communicate their approach to sustainable investment through a simple and accessible set of core questions.
Since then, the regulatory landscape has evolved significantly. Through its Sustainable Finance Action Plan, the European Union has introduced a range of mandatory disclosure and transparency requirements for financial market participants and their products.
In light of these developments and following stakeholder feedback gathered through a consultation process, the Eurosif Board concluded that there is no longer a clear market need for the Code and therefore decided to phase it out during 2023.
Eurosif remains committed to strengthening the European sustainable finance framework and will continue to contribute to policy discussions, including on the transparency and disclosure of financial products.
About the Transparency code
The Transparency Code was based on a simple principle: asset managers should be transparent about their sustainable and responsible investment (SRI) policies and practices and provide accurate, relevant and timely information. This enabled stakeholders, particularly retail investors, to better understand the approach of a given SRI fund.
The Code covered a range of asset classes and applied to SRI funds publicly distributed in Europe. It was a mandatory requirement under some national SRI labels and industry initiatives, including the FNG Label. In 2018, the Code was updated to reflect evolving market practices and developments in sustainable and responsible investment and sustainable finance.