SFDR – the path to green investment not greenwashing

The European Supervisory Authorities seek to mitigate the risk of divergent application of sustainable financial disclosure reporting (SFDR) and Article 5 and 6 of the Taxonomy Regulation in the financial services sector within the period from 10 March 2021 to the application date of the Regulatory Technical Standards (most probably from 1st of January 2023). In the absence of harmonised rules on SFDR to end investors and a growing fund market (labeled under Article 6, 8 and 9) of over 4 trillion EUR at the end of December 2021, different approaches to product classification could lead to widespread confusion and greenwashing concerns.

In this alert you will read more about the outlook of EU mutual funds under SFDR in 2021 and how Deloitte can help.