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ARTICLE · 29 JANUARY 2026

SFDR 2.0 For Fund Managers – A Step In The Right Direction?

McDermott Will & Schulte
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On 22 November 2025, the European Commission published its long-awaited legislative proposal to ‘simplify' the Sustainable Finance Disclosure Regulation (Draft SFDR 2.0)...

United KingdomFinance and Banking
Karen Butler
Karen Butler
Josh Dambacher
Josh Dambacher
Christopher Hilditch
Christopher Hilditch
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On 22 November 2025, the European Commission published its long-awaited legislative proposal to 'simplify' the Sustainable Finance Disclosure Regulation (Draft SFDR 2.0), which will transform the existing disclosure regime into a more streamlined categorisation regime.

The Draft SFDR comes hot on the heels of an earlier 'leaked version' of SFDR 2.0 and just over 4 years since the original SFDR came into force. Draft SFDR 2.0 has been submitted to the European Parliament and Council for their consideration. The new regime is unlikely to apply before late 2027/early 2028.

In Depth

Product categorisation changes

The most significant proposal in SFDR 2.0 relates to the deletion and replacement of the existing Article 6, 8 and 9 requirements, with three new product categories known as:

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