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ARTICLE · 02 MAY 2023

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Key Clarifications Provided By The European Commission On The SFDR Framework

Dillon Eustace
Dillon Eustace
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Dillon Eustace

Dillon Eustace

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Following on from a number of consultations published earlier this month, the developments in the sphere of EU sustainable finance continue with pace, with the European Commission (Commission)...

European UnionFinance and Banking
Cillian Bredin
Cillian Bredin
Alanna Hannon
Alanna Hannon
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Following on from a number of consultations published earlier this month1, the developments in the sphere of EU sustainable finance continue with pace, with the European Commission (Commission) publishing its response (Response) to questions posed by the ESAs in September of last year on certain critical aspects of the SFDR framework on 14 April 2023 (ESA Questions).

Below we outline some of the key clarifications provided by the Commission in its Response to the ESA Questions which will be broadly welcomed by the asset management industry.

"Sustainable Investment" Definition

Article 2(17) of the SFDR sets down three criteria which must be satisfied in order for an investment to constitute a "sustainable investment":

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