- Goal of SFDR:
The SFDR aims to enhance sustainability investment practices and improve transparency by standardizing the measurement of ESG factors, making it easier for investors to understand and track sustainable investments. - Scope and Compliance:
Applicable to various financial entities in the EU, including asset managers and financial advisers, the SFDR mandates disclosures by January 1, 2023, with regulatory oversight to ensure compliance and avoid penalties. - Disclosure Framework:
The SFDR requires entity-level disclosures on sustainability practices and product-level disclosures categorized under Articles 6, 8, and 9, detailing the integration of sustainability risks and objectives in financial products.
Source Zampa Debattista
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