The Sustainable Finance Disclosure Regulation (SFDR) came into force on March 10, 2021. It applies to financial market participants who operate in the EU.
The SFDR requires organizations to disclose data about the environmental, social, and governance (ESG) characteristics of their financial products, which can be challenging for several reasons:
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Classification and categorization: Determining the appropriate classification of financial products under the SFDR taxonomy and assigning them to the correct sustainability-related disclosures can be complex.
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Data availability and quality: Obtaining accurate and reliable data on sustainability factors from investee companies and third-party data providers can be challenging.
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Data consistency and comparability: Ensuring consistent and comparable sustainability data across different financial products and reporting periods can be difficult due to variations in data collection methodologies and reporting standards.
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Integration into existing processes: Incorporating sustainability factors into investment decision-making processes and aligning them with existing risk management frameworks and strategies can require significant adjustments and coordination.
Want to make sure you’re prepared? Join us to find out all you need to know – including the timeline for implementation, the data you need to prepare, and where to report.
Outline:
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What’s the objective of this new regulation?
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What’s the adoption and implementation process for this directive?
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How can Sweep for Compliance help get your carbon and ESG data ready for regulatory compliance disclosure?
