Sustainable Finance Disclosure Regulation (SFDR) - Article 6, 8 and 9 - Future of ESG Funds
- Isa Kettmann
- Nov 30, 2022
- 1 min read
With the Sustainable Finance Disclosure Regulation (SFDR) the European Commission has introduced a new system to identify financial products from a sustainability perspective.
Investment products are now categorized as one of the following:
Products that do not integrate sustainability into their investment process (Art. 6)
Products that promote environment or social features while following good governance practices, i.e. excluding companies that do not integrate sustainability (Art. 8)
Products that target sustainable objectives and invest in activities that contribute to social or environmental objectives while following good governance practices (Art. 9)
With the introduction of this framework, the European Commission is the first regulator to introduce a standardized categorization and process in regard to sustainable investing and sustainability risk management. If you are concerned if the funds in your portfolio meet any of the above criteria, please don't hesitate to reach out to us.
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