While the frameworks share similar aims, they differ in scope and depth of requirements
SFDR Article 8
Clarification on the templates that may be used for the 2025 financial year, the scope and operation of the two-year opt-out from detailed Taxonomy reporting, and the application of materiality.
A holistic summary of the differences between the leaked version and this official version.
The leaked draft indicates widespread changes with new product categories.
The proposal seeks to address criticism of SFDR complexity and to increase consistency with the rest of the EU Sustainable Finance Framework.
We spoke about sustainability and climate reporting in US, UK and EU; the divisive nature of ESG; and the regulatory compliance burden on firms.
ESAs propose improvements to the "complex and difficult to comprehend" SFDR and suggest introducing categories and/or sustainability indicators.
The five key milestones for investment managers in ESG reporting covered in this article are: SDRs, PRI, SFDR, TCFD and ISSB.