Update (September 2026): SFDR 2.0 is in trilogue. The Council agreed its general approach on 24 June 2026 and the Parliament's ECON committee adopted its negotiating position on 10 September 2026; negotiations run through autumn with application expected around 2029. Contested points include whether professional-investor-only AIFs can opt out of product categorisation and whether fossil-fuel producers expanding output can qualify for the "transition" category. Article 8 funds took roughly EUR 145 billion of net inflows in the first half of 2026.
The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation introduced to improve transparency in the market for sustainable investment products, to prevent greenwashing and to increase transparency around sustainability claims made by financial market participants. It imposes comprehensive sustainability disclosure requirements covering a broad range of environmental, social & governance (ESG) metrics at both entity- and product-level. The main provisions of the SFDR have been applicable as of 10 March 2021, with a statutory instrument known as a Delegated Act containing more precise disclosure standards yet to be adopted by the European Commission.
