SFDR Classification: It's Still Shifting Times

It's now close to two years since the Sustainable Finance Disclosure Regulation (SFDR) was implemented in the EU. The ESG-focused regulation tests the disclosure level of financial market participants, asking them to abide by transparency principles. The next phase kicked in this year and those affected need to be on the ball.

In January 2023, a series of technical standards pertaining to the SFDR directive's Level 2 disclosure requirements came into effect.

This constitutes an important moment in the application of this directive. After the first rollout phase, characterised by mainly high-level commitments to sustainability made by some participants in scope, this was the moment where a strong and clear commitment towards specific reporting rules on data was called for.