SFDR
Sustainable Finance Disclosure Regulation
Definition
The EU regulation requiring financial market participants and financial advisers to make sustainability-related disclosures regarding their integration of sustainability risks, consideration of adverse sustainability impacts, and the promotion of environmental or social characteristics (Article 8) or sustainable investment objectives (Article 9).
Regulatory Context
SFDR is a key component of the EU's sustainable finance framework, alongside the Taxonomy Regulation and CSRD. It has created a de facto classification system for ESG funds through its Article 6/8/9 categories, though this was not the original legislative intent.