No minimum requirements for fund providers under SFDR

Must publish methodology

There will be no minimum requirements for fund providers under the Sustainable Finance Disclosure Regulation, the European Commission has confirmed.

Responding to questions posed by the European Supervisory Authorities in September 2022, the EC confirmed SFDR would not "prescribe any specific approach to determine the contribution of an investment to environmental or social objectives" with firms left to "disclose their underlying assumptions". In the update, the EC specified product providers must publish their methodology and explain how their investments do no significant harm. Funds labelled as sustainable must be invested in an economic activity that contributes to an environmental or social objective, with no significant harm t...