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ARTICLE · 17 DECEMBER 2025

SFDR 2.0: Proposal For Amending Regulation Published

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On 20 November 2025, the European Commission (the Commission) formally published its legislative proposal to amend the Sustainable Finance Disclosure Regulation (SFDR)...

IrelandFinance and Banking
Emmet Quish
Emmet Quish
Joe Mitchell
Joe Mitchell
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On 20 November 2025, the European Commission (the Commission) formally published its  legislative proposal to amend the  Sustainable Finance Disclosure Regulation (SFDR), the PRIIPs KID Regulation and repeal the SFDR Delegated Regulation (SFDR 2.0). The publication follows a leaked draft of the amendments in circulation earlier in November.

Upon implementation, SFDR established a disclosures framework for financial market participants (FMPs) regarding how they integrate and disclose environmental, social and governance (ESG) factors, which was further amended and supplemented by, inter alia, the Taxonomy Regulation and the SFDR Delegated Regulation. SFDR 2.0 represents a significant overhaul of the current framework and signals the evolution of SFDR into a product categorisation-based framework. In this advisory we will outline the key changes proposed by the Commission which are underpinned by two central themes: 

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