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ARTICLE · 12 FEBRUARY 2026

Travers Smith's Sustainability Insights: Six Fixes For SFDR 2.0

Travers Smith LLP
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At the end of last year, we expressed disappointment at the European Commission's proposal for a revised Sustainable Finance Disclosure Regulation (SFDR 2.0).

United KingdomFinance and Banking
Simon Witney
Simon Witney
James Barnard
James Barnard
Phil Bartram
Phil Bartram
Samuel Brewer
Samuel Brewer
Sarah-Jane Denton
Sarah-Jane Denton
Nick Glynn
Nick Glynn
Henriika Hara
Henriika Hara
Tim Lewis
Tim Lewis
Michael Raymond
Michael Raymond
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KEY INSIGHTS

Private markets overlooked: Current SFDR 2.0 proposals fail to accommodate private funds' needs, giving rise to impractical requirements and unintended consequences that could stifle innovation.

Professional investor restrictions: An exemption for communications to professional investors would facilitate open ESG dialogue, prevent "greenhushing", and foster diverse approaches.

Engagement is vital: Now is the time for industry feedback to fix inflexible rules, clarify fund categorisations, and accommodate private markets' strategies.

A regular briefing for the alternative asset management industry.

At the end of last year, we expressed disappointment at the European Commission's proposal for a revised Sustainable Finance Disclosure Regulation (SFDR 2.0). We acknowledged that there were some positives, but we argued that private markets were an afterthought in the re-design of the EU's landmark sustainable finance regulation. The text omits

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