Sustainable Finance Disclosure Regulation

The Sustainable Finance Disclosure Regulation (SFDR) is a European Union regulation that requires financial market participants and financial advisors to disclose how they integrate environmental, social, and governance (ESG) factors into their investment decisions and advisory processes. Implemented to enhance transparency, the SFDR aims to provide investors with clearer information on the sustainability risks and impacts of their investments, helping them make more informed decisions and drive capital towards sustainable activities. It also includes requirements for the disclosure of sustainability-related information at both the entity and product levels.