What the EU is doing and why
The EU has put in place a transparency framework, the Sustainable Finance Disclosure Regulation (SFDR), which has been in application since March 2021. By setting out how financial market participants have to disclose sustainability information, the framework helps investors who want to put their money into companies and projects supporting sustainability objectives to make informed choices. The SFDR is also designed to allow investors to properly assess how sustainability risks are integrated in the investment decision process. In this way, the SFDR contributes to one of the EU’s big political objectives: attracting private funding to help Europe make the shift to a net-zero economy.
In November 2025, the Commission proposed a set of amendments to the SFDR, addressing existing shortcomings in the framework. The changes aim to deliver simpler and more usable information for investors, while reducing disclosure requirements and compliance costs for financial actors.
Policy making timeline
- 20 November 2025Legislative proposal
- 2 May 2025Call for evidence
- 14 September 2023Consultation
The Commission launched 2 consultations
- a public consultation on the implementation of the Sustainable Finance Disclosures Regulation (SFDR)
End date: 15 December 2023
- a targeted consultation on the implementation of the Sustainable Finance Disclosures Regulation (SFDR)
End date: 15 December 2023
- a public consultation on the implementation of the Sustainable Finance Disclosures Regulation (SFDR)
- 17 February 2023Delegated Regulation
The requirements started to apply on 20 February 2023.
These amendments require financial market participants to disclose the extent to which their portfolios are exposed to gas and nuclear-related activities that comply with the Taxonomy, as set out in the Complementary Climate Delegated Act (CDA).
For the convenience of financial market participants preparing the financial product disclosures under the SFDR the three European Supervisory Authorities (EBA, EIOPA and ESMA) provide an editable word version of the templates on their website.
- 25 July 2022Delegated Regulation
The requirements started to apply on 1 January 2023.
This Delegated Regulation specifies the exact content, methodology and presentation of the information to be disclosed, thereby improving its quality and comparability.
A corrigendum to this Delegated Regulation was published on 27 December 2022.
- 10 March 2021Entry into application
The Sustainable Finance Disclosure Regulation comes into application.
- 8 March 2018Action plan - Sustainable finance
Renewed sustainable finance strategy and implementation of the action plan on financing sustainable growth, with action 9 being to strengthen sustainability disclosure and accounting rule-making.
The SFDR requires financial market participants and financial advisers to inform investors about how they consider the sustainability risks that can affect the value of and return on their investments (‘outside-in’ effect) and the adverse impacts that such investments have on the environment and society (‘inside-out’). Market participants have to make this information available with regard to specific products, but also relating to their respective firm as a whole. They have to do so via their websites, in product pre-contractual documents and in annual reports.
The Regulation does not force market participants to consider green criteria when investing. Rather, it sets out rules that require them to justify the sustainability claims that they make in relation to their financial products. These rules apply to financial market participants managing money on behalf of end investors: asset managers, insurance undertakings, occupational and other pension providers, as well as investment firms.
Basic information
- Text of the SFDR (2019/2088/EU)
- Summary of the legislation: Sustainability-related disclosures in the financial services sector
Delegated and implementing acts
Implementation
- FAQ with important clarifications for market participants regarding the interaction between the SFDR and the Taxonomy Regulation
- Questions and answers on the implementation of the SFDR and the related Regulatory Technical Standards (consolidated version)