Sustainable Finance Update (Asset Management) – EU Commission Publishes Final SFDR 2.0 Proposal

On 20 November 2025, the EU Commission published its final proposal for a regulation amending the Sustainable Finance Disclosure Regulation¹ (the "SFDR 2.0 proposal").

Introduction

As part of its SFDR review, the Commission carried out a comprehensive assessment of the SFDR framework. Following this review, the Commission concluded that, while the objectives of the SFDR remain broadly supported, several aspects of the rules were complex, difficult to implement, and ineffective.

According to the Commission, the SFDR 2.0 proposal pursues two main objectives:

• The first one is to simplify and reduce the disclosure and operational requirements for financial market participants ("FMPs" (which includes UCITS management companies and AIFMs)).