Five guiding principles for SFDR compliance: Intent is not enough

Getting it right in 2023

Like it or not, we live in an age of cynicism. Intent is not enough, even outcome is not enough. Proof is king.

Nowhere is this more apparent than in the introduction of the Sustainable Finance Disclosure Regulation (SFDR). Once upon a time, it was acceptable, even praised, to have a detailed mission statement setting out vague promises that lay somewhere between rudimentary corporate social responsibility and more advanced environmental, social and governance principles. Today, investors and the wider public are increasingly sceptical, largely thanks to the rise of greenwashing. 20% of sustainable funds 'fall short' of SFDR standards The EU, noting this, introduced SFDR to mandate detail...