SFDR 2.0 – EU Commission Publishes Final Proposal

This article highlights the key differences between the leaked draft and the final proposal, identifies elements that remain largely unchanged, and provides a detailed overview of the new categorization regime.

In our previous article, we reported on the leaked draft of the revised Sustainable Finance Disclosure Regulation (SFDR) – commonly referred to as SFDR 2.0 – and signalled a significant overhaul of the EU's sustainable finance framework. Now, with the European Commission's (EC) final proposal published on 20 November 2025, we have a definitive blueprint for SFDR 2.0. While the final proposal builds on the leaked draft, it introduces several substantive changes; not to the benefit of the industry compared to the leaked draft.