SFDR: Panorama of the sustainability-related disclosures from the Level 1 – Implementation in March 2021

LuxFLAG welcomes the enhanced transparency and sustainability-related disclosures brought by the Level 1 implementation of the EU Sustainable Finance Disclosure Regulation1 (“SFDR”) on 10 March 2021, which will help the transition to both a sustainable economy and society. SFDR aims to support informed and qualified investment decisions by requiring disclosures on the integration of sustainability-related characteristics into investment processes and products.

LuxFLAG has updated its eligibility criteria following the entry into force of SFDR, requiring ESG Label and Environment Label applicant funds to be classified as either Article 8 or Article 9; and Climate Finance Label and Microfinance Label applicant funds to be classified as Article 9. The announcement can be found here.

As such, LuxFLAG has, from its unique position as a sustainable finance labelling agency, looked at the initial SFDR pre-contractual disclosures of its labelled funds, with the objective of understanding how asset managers have responded to this important step on the journey to making all finance become sustainable finance.

Read the full paper here.