A Brief on Sustainable Finance Disclosure Regulation (SFDR)
Learn what SFDR means for financial market participants and how it shapes sustainability disclosure and reporting requirements.
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The European Union put in place the Sustainable Finance Disclosure Regulation (SFDR) as a transparency framework to regulate how financial market participants have to disclose their critical sustainability information.
SFDR helps investors understand sustainability performance and make informed choices. It also allows them to make proper risk assessments during their due diligence processes. In this way, SFDR supports the European Union's initiatives to shift the region towards a net zero economy with smart investments and sustainability-related economic incentive systems.
The following is a brief on SFDR: what it is, who it impacts, what needs to be disclosed, and more. This guide is not meant to be entirely comprehensive, but rather give an executive summary of SFDR to help you get started on your sustainability journey.
About the author
Sowmya Menon
Advisory Lead
Sowmya Menon is an Advisory Lead at Green Project Technologies, an AI climate management platform helping businesses of all sizes measure, manage, and reduce emissions across complex global value chains.