Proposal for categorisation of products under the SFDR
Published 16 January 2025
Category: Impact and ESG
The EU Platform on Sustainable Finance has published a briefing note for the EU Commission outlining how a categorisation system for sustainable finance products could be set up and calibrated.
The briefing note outlines a proposal for a categorisation scheme and key considerations for the EU Commission as part of the review process to assess potential shortcomings of the SFDR. The categories aim to reflect the overarching sustainability objectives of financial products, focusing on the needs of retail investors. It is further proposed to align sustainability preferences with the categories.
The following product categories with the appertaining sustainability strategies are recommended:
- Sustainable: Contributions through taxonomy-aligned investments or sustainable investments with no significant harmful activities or assets based on a more concise definition consistent with the EU Taxonomy.
- Transition: Investments or portfolios supporting the transition to net zero and a sustainable economy, avoiding carbon lock-ins, per the EU Commission’s recommendations on facilitating financing for the transition to a sustainable economy.
- ESG collection: Excluding significantly harmful investments and/or activities, investing in assets with better environmental and/or social criteria or applying various sustainability features.
- Unclassified products: All other products.
Next step
The Platform on Sustainable Finance will inform about their proposal at a webinar on Tuesday 21 January 2025. The proposal reflects the view of the members of the Platform on Sustainable Finance which is an advisory body with a specific mandate to work with areas of sustainable finance and advise the EU Commission. However, it does not commit the EU Commission currently but will be analysed and viewed by the EU Commission.
Tags: SFDRSustainability
Also tagged ‘SFDR’
Changes to financial reports for Danish UCITS
The Danish FSA has submitted a draft executive order amending the executive order on financial reports for Danish UCITS for public consultation.
Danish RegulationSFDRSustainabilityAnnual report on principal adverse impact disclosures
The European Supervisory Authority has published an annual report on principal adverse impact disclosures in accordance with Article 18 of the SFDR.
Disclosure RequirementsSFDRSustainabilityNon-financial reporting under the EU taxonomy – theme inspection by the Danish FSA for 2024
The Danish FSA has now carried out a follow-up theme inspection of 20 financial companies regarding their reporting in accordance with Article 8 of the Taxonomy Regulation for the 2024 financial year.
Disclosure RequirementsSFDRSustainabilityUpdated Q&A from ESMA on the SFDR and Level 2 Regulation
The Q&A gathers responses from the EU Commission as well as ESAs with the purpose of assisting with clarifying implementation and application of the legislation.
Disclosure RequirementsESMASFDRSustainabilityRevised sustainability standards sent for public consultation
The European Financial Reporting Advisory Group (“EFRAG”), published the draft revised European Sustainability Reporting Standards (“ESRS”).
ComplianceCSRDDisclosure RequirementsESRSSFDRSustainabilityMeasures to simplify the EU Taxonomy adopted
In July, the EU Commission adopted a Delegated Act amending the Taxonomy Disclosures, Climate and Environmental Delegated Acts (the “Delegated Act”).
ComplianceCSRDDisclosure RequirementsESRSSFDRSustainabilitySustainable investments: Requirements and practices
The Danish Financial Supervisory Authority (DFSA) has compiled a report summarizing its recent thematic reviews of sustainable financial products, key legal requirements, and central expectations.
ComplianceCSRDDisclosure RequirementsESRSSFDRSustainabilityESMA Report: Improvements needed in the supervision of sustainability risks and disclosures
The report presents ESMA’s analysis and key findings from the CSA, along with its overall assessment of market participants’ adherence to applicable rules and standards.
ESMASFDRSustainabilityThematic review of engagement information
The Danish Financial Supervisory Authority (the “DFSA”) has conducted a thematic review of six pension companies and investment managers and their engagement information (active ownership).
SFDRSustainabilityThe Danish FSA: Managers need to ensure truly sustainable investments
The Danish Financial Supervisory Authority (the “Danish FSA”) has initiated an inspection of three managers in September 2024.
SFDRSustainabilityThe Danish FSAEU Competitiveness Compass – ESG takeaways
29 January 2025, the EU Commission published its Competitiveness Compass which sets out a compass that will guide the work in the coming five years and lists priority actions to reignite economic dynamics in Europe, according to the communication.
CSDDDCSRDDisclosure RequirementsSFDRSustainabilityInvest Europe launches enhanced ESG reporting template
Invest Europe has launched an enhanced ESG reporting template to drive convergence and support early-stage investors developed with Venture ESG.
CSRDSFDROther updates
Proposal on Danish implementation of AIFMD II
The purpose of the amendments to the AIFM Act is to implement certain parts of the AIFM Directive II which entered into force on 15 April 2024.
AIFMDAIFMD reviewCross-BorderDanish RegulationChanges to financial reports for Danish UCITS
The Danish FSA has submitted a draft executive order amending the executive order on financial reports for Danish UCITS for public consultation.
Danish RegulationSFDRSustainabilityAnnual report on principal adverse impact disclosures
The European Supervisory Authority has published an annual report on principal adverse impact disclosures in accordance with Article 18 of the SFDR.
Disclosure RequirementsSFDRSustainabilityEU state aid framework enabling support to clean industry
The CISAF aims to facilitate Member States' support for clean technology manufacturing and deployment while ensuring a level playing field across the EU.
SustainabilityNon-financial reporting under the EU taxonomy – theme inspection by the Danish FSA for 2024
The Danish FSA has now carried out a follow-up theme inspection of 20 financial companies regarding their reporting in accordance with Article 8 of the Taxonomy Regulation for the 2024 financial year.
Disclosure RequirementsSFDRSustainabilityUpdated Q&A from ESMA on the SFDR and Level 2 Regulation
The Q&A gathers responses from the EU Commission as well as ESAs with the purpose of assisting with clarifying implementation and application of the legislation.
Disclosure RequirementsESMASFDRSustainability