industry
Finance
Location
European Union
Status
In effect
Overview
The Sustainable Finance Disclosure Regulation (SFDR) requires financial services companies and financial advisors to disclose sustainability investments and risks. By standardizing these environmental, social, and governance (ESG) disclosure measures and mandating accountability, the SFDR aims to increase transparency in ESG claims and discourage greenwashing caused by vague or internally designated criteria.
Requirements
Disclose sustainable investments and risks
Affected Companies
Revenue thresholds
Not specified
Company size
500 employees or larger; organizations with less than 500 employees have the option to opt out of entity-level disclosures; does not apply to independent investment advisors (i.e., self-employed advisors) or advisory organizations with three or fewer employees
Company Type
Financial market participants and financial advisors, including: asset managers, institutional investors, insurance companies, and pension funds
Geography
EU entities and non-EU entities that engage with EU clients
industry
Finance
Status:
timeline for compliance
Requirements began to apply on February 20, 2023.
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