The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation that has applied directly in the EU (and EEA countries) since March 2021. The aim of the SFDR is to provide harmonised disclosure requirements, qualitative and quantitative, with regard to the: (i) integration of sustainability risks in investment decision-making and asset management; (ii) consideration and assessment of Principal Adverse Impacts (PAI) of investment decisions on sustainability factors; and (iii) provision of sustainability-related information on financial products. The overriding intention is to redirect capital towards more sustainable investment and to assist investor decision-making through improving transparency and introducing common standards.
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