EU SFDR vs SEC Rules: Differences, Similarities And Why You Should Care

The EU and the US are implementing new rules to improve transparency on the climate impact of investments. While both plans were developed with the same idea in mind, (improving understanding of climate risk and protection against greenwashing), the approaches chosen by each region differ significantly. Today's economies are tightly interwoven, and fund managers may well be caught by both sets of rules. So how do the two initiatives compare? And what does this mean for you?

EU SFDR

The EU was the first jurisdiction to announce its plans. Of these, the Sustainable Finance Disclosure Regulation (SFDR) is key. SFDR introduces disclosure requirements for all firms marketing funds in the EU (whether they, themselves, are based in the EU, or not). The first phase went live in March 2021.