Parliament’s Position On SFDR 2.0

On 10 September 2026, the European Parliament’s Committee on Economic and Monetary Affairs (“ECON”) has adopted its position on the reform of the Sustainable Finance Disclosure Regulation (“SFDR”), marking a significant milestone in the SFDR 2.0 legislative process. The position is expected to be endorsed by the European Parliament (the “Parliament”) in plenary in October 2026, with no material amendments anticipated.

Following the European Commission’s (the “Commission”) proposal in November 2025 and the Council of the European Union’s (the “Council”) negotiating mandate in June 2026, the three institutions’ positions are now substantially settled. Both the Council and ECON broadly support the proposed categorisation framework but depart from the Commission on several points important to private markets, including exemptions for certain professional-investor alternative investment funds (“AIFs”) and the treatment of fossil-fuel-linked investments in the proposed product-level