Scope
Financial market participants and financial advisers (entity and product level)
EU · regulation
Sustainable Finance Disclosure Regulation (SFDR)
Regulation (EU) 2019/2088 (in force); SFDR 2.0 proposal COM(2025) 633 (pending)
In forceApplies 2021-03-10
Penalties
National competent-authority supervision; ESMA fund-names guidelines gate ESG product names
Last verified
2026-08-22
In plain language
What this law does
Governs how financial-market participants disclose sustainability risks, principal adverse impacts and the E/S characteristics (Art. 8) or sustainable-investment objective (Art. 9) of products. SFDR 2.0 would replace Articles 8/9 with product categories (sustainable / transition / ESG basics) and a 70% portfolio threshold; trilogues run Q4 2026 to mid-2027.
Core obligations
Entity-level sustainability-risk and PAI statements; pre-contractual/website/periodic product disclosures; Art. 8/9 templates; PAI indicators (14 mandatory + opt-ins)
Dictionary
Terms defined in this law
- Category exclusionsSFDR
- Financial market participant (FMP)* (2(1))SFDR
- Financial product* (2(12))SFDR
- Sustainable investment* (2(17))SFDR
- Sustainability risk* (2(22))SFDR
- Sustainability factors* (2(24))SFDR
- Principal adverse impacts (PAIs)* (recital 20; Art. 4)SFDR
- Art. 3SFDR
- Art. 4SFDR
- Art. 6SFDR
- Art. 8SFDR
- RTS (2022/1288) Annexes II–VSFDR
- Table 1SFDR
- Tables 2–3SFDR
- Product categoriesSFDR
- 70% minimum portfolio alignment with the category objectiveSFDR
- Entity-level disclosures removed; product-level PAI retained for Sustainable/TransitionSFDR
- Trilogue pending (Parliament ECON Sep 2026); application 24 months after entry into force (~2028 earliest)SFDR
Claims