Following a 2023 consultation that identified shortcomings in the original Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), including complexity and the misuse of Articles 8 and 9 as product labels, the European Commission has proposed a comprehensive revision, known as “SFDR 2.0”.
The proposal aims to simplify the rules, com-bat greenwashing, and improve investor understanding by shifting from a disclosure-based approach to a formal product categorization system.
This briefing outlines the key changes introduced by the SFDR 2.0 proposal.