What To Know on the Revised SFDR
The EU recently published its long awaited proposed amendments to the Sustainable Finance Disclosure Regulation (SFDR). For the first time, the term 'impact' is included in the framework, marking a pivotal moment for the impact investing space. But how does it all work?
First things first: you can find the official publication by the European Commission here.
The inclusion of a defined impact category is perhaps the most eye-catching change in the document. To help you get oriented throughout the new proposal, we have created a slide set that outlines the most important adaptations, and how they work in practice:
How do we feel about the proposed changes?
Impact Europe, together with United for Impact, a coalition of 68 impact-investment funds across 19 European countries, welcomes the Commission’s approach, having long advocated for a dedicated impact category.
“At a time of collective setbacks, the European Commission’s proposal on the SFDR charts a clear ambition. This review has the potential to unlock substantial private capital for the transition, and impact investors will play their part,” says Servane Metzger-Corrigou, coordinator of United for Impact and chief impact officer at Ring Capital.
Jana Bour, director of policy & advocacy at Impact Europe, urges investors and industry associations to unite behind the emerging standard. “Alignment is our greatest asset: the more aligned we are behind the Commission’s proposal, the faster capital can move into the solutions Europe urgently needs". Future dialogue in Impact Europe's Policy Hubs will allow for a continuation of dialogue on this topic.