SFDR
Regulation (EU) 2019/2088 — Sustainability-related disclosures in the financial services sector
Topic : Sustainable finance · Level : Regional
Today
SFDR 1 applies. SFDR 2.0: Council mandate 24 Jun 2026, EP plenary mandate 5 Oct 2026; 1st trilogue set for 22 Oct 2026.
Summary
SFDR makes EU financial firms disclose how they handle sustainability risks and impacts. A reform (SFDR 2.0) proposed in Nov 2025 would replace Articles 8 and 9 with three product categories, likely from 2029.
Who is concerned
- Turnover
- non précisé
- Employees
- PAI entity statement: >500 staff
- Listed company
- non précisé
- Sectors
- Asset managers
- Insurers (IBIPs)
- Pension providers
- Investment advisers
- Triggering activities
- Being a financial market participant in EU
- Offering financial products in the EU
- Giving investment or insurance advice
- Extraterritorial reach
- No
Applies to EU-marketed products; investee companies abroad receive ESG data requests (PAI indicators).
- Examples
- EU fund manager with Article 8 funds
- Insurer selling unit-linked products
- Non-EU manager marketing funds in the EU
What the law requires
- Disclose sustainability risk integration and remuneration policies
- Report principal adverse impacts at entity level (mandatory above 500 staff)
- Provide pre-contractual and periodic disclosures for Article 8 and 9 products
- Prepare to classify products under SFDR 2.0 categories once adopted
Penalties
Set by national competent authorities (e.g. AMF, BaFin) under national law; no EU-level fine amount.
What this changes for a supplier in China
Indirect. Chinese companies held by EU funds face requests for PAI data (GHG, gender pay gap, controversies). Exclusion criteria may cut access to EU capital.
Expected evidence
- Scope 1-3 GHG emissions
- Board gender diversity and pay gap
- Policy on UNGC/OECD Guidelines
Tiers : Tier 1