The EU's Action Plan on Sustainable Finance has, since
2016, pursued the implementation of
regulatory measures aimed at introducing market
standards and legal obligations in the field of
sustainable finance.
The "Sustainable Finance Disclosure Regulation"
("SFDR"), adopted in 2019, is supplemented by the
EU's Taxonomy Regulation and sets the criteria that need to be
met by an economic activity so as to qualify it as an
environmentally sustainable investment. "SFDR" came into
force on the 10th of March 2021.
"SFDR" regulation is applicable to financial
market participants such as asset managers, including UCITS
Management Companies and Alternative Investment Fund Managers,
venture capital funds, credit institutions offering portfolio
management, pension funds, insurance companies, banks as well as
financial advisors whose activity is in Europe. The regulation also
applies to non-EU financial participants with business in Europe,
including the sale of products
