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ARTICLE · 05 DECEMBER 2025

The Long-awaited SFDR 2.0

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SFDR 1.0 has fundamentally reshaped the ESG landscape for private capital managers since it came into force in 2021.

United KingdomFinance and Banking
Rachel Richardson
Rachel Richardson
Lora Froud
Lora Froud
Michael Sholem
Michael Sholem
Tiffany Cox
Tiffany Cox
Angela Phelan
Angela Phelan
Emily Batchelor
Emily Batchelor
Katie Darwin
Katie Darwin

The European Commission (Commission) has finally unveiled their proposals to overhaul the EU's Sustainable Finance Disclosure Regulation (SFDR) — often dubbed "SFDR 2.0".

SFDR 1.0 has fundamentally reshaped the ESG landscape for private capital managers since it came into force in 2021. Limited partners across Europe have increasingly signaled their expectations for managers to launch Article 8 and in some cases Article 9 products. Morningstar report that in the third quarter of 2025, newly launched Article 8 and Article 9 funds accounted for close to 49% of all funds launched in the EU1. From a Private Capital perspective, Invest Europe report that, of funds subject to SFDR, 84% of 2023 vintage funds are classified as Article 8 or 92.

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