Resources

A Brief on Sustainable Finance Disclosure Regulation (SFDR)

eBook

August 13, 2024

10

min read

Sowmya Menon
Carbon Accounting

The European Union put in place the Sustainable Finance Disclosure Regulation (SFDR) as a transparency framework to regulate how financial market participants have to disclose their critical sustainability information.

SFDR helps investors understand sustainability performance and make informed choices. It also allows them to make proper risk assessments during their due diligence processes. In this way, SFDR supports the European Union's initiatives to shift the region towards a net zero economy with smart investments and sustainability-related economic incentive systems.

The following is a brief on SFDR: what it is, who it impacts, what needs to be disclosed, and more. This guide is not meant to be entirely comprehensive, but rather give an executive summary of SFDR to help you get started on your sustainability journey.

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