EU funds and fund managers – Tiers of disclosure

The SFDR is a disclosure regulation, ensuring that firms make consistent and substantive statements on the manner in which they incorporate environmental and social considerations in their investing.

It provides for disclosures:

At ‘firm’ level

At ‘product’ level

Covering the integration of sustainability risks in investment decision-making processes.

Whether a firm considers the principal adverse impacts of their investment decisions on sustainability factors. Where firms do not do so, they are required to disclose clear reasons for this and indicate if and when they intend to consider such factors.

On how firm remuneration policies are consistent with the integration of sustainability risks.

Ensuring that investors receive consistent fund-related sustainability information, in particular in relation to products that promote environmental or social characteristics (Article 8 products) or have as their objective sustainable investments (Article 9 products).

Clients of investment advisory mandates and portfolio management mandates will receive a similar set of information.

This chapter focuses on the information that firms managing alternative investment funds must provide to investors, with equivalent information provided to clients of firms with advisory and portfolio management mandates.

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Invest Europe Guide on the EU SFDR and Taxonomy

Member guides

30 May 2023

This new Invest Europe members-only Guide aims to clear up some of the grey areas around the day-to-day application of the EU Sustainable Finance Disclosure Regulation (SFDR), as well as its interplay with the EU Taxonomy. It has been developed by industry experts, for practitioners, outlining current best practices and answering common questions.