background image

EU looks to expand sustainable reporting requirement to all funds

author image

By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below

🗞️ Driving the news: The European Union's recent survey hints at a potential expansion of the Sustainable Financial Disclosure Regulation (SFDR) to encompass all financial products, not just those labeled as environmentally friendly

🔭 The context: Initially introduced in 2018, the SFDR aimed to regulate the portrayal of sustainable products by fund managers, giving rise to what are now termed as environmental, social, and governance (ESG) funds
• The European Sustainability Reporting Standards (ESRS) was designed to complement the reporting obligations of the SFDR
• These regulations fall under the broader objective of dictating how businesses showcase their eco-friendly initiatives

🌍 Why it matters for the planet: With sustainability becoming a focal point, there's an escalating threat of "greenwashing" – where entities exaggerate their green initiatives for marketing gains
• The SFDR's current form and application have stirred concerns about it serving more as a branding tool rather than genuinely promoting transparency

⏭️ What's next: The European Commission is spearheading a consultation initiative to gather insights on the ESRS and appraise the SFDR's impact on businesses and funds and feedback from diverse stakeholders, including financial experts, NGOs, and investors, is being sought
• The window for input remains open till December 15, 2023

💬 One quote: The growing demand for sustainability in business and finance is double-edged, as it also amplifies the risk of using greenwashing as a promotional tactic (Jon McGowan, attorney)

Click for more news covering the latest on sustainable finance

Did you enjoy this illuminem voice? Support us by sharing this article!
author photo

About the author

illuminem's editorial team - providing you with concise summaries of the most important sustainability news of the day.

Follow us on Linkedin, Twitter​ & Instagram

Other illuminem Voices

Related Posts

You cannot miss it!

Weekly. Free. Your Top 10 Sustainability & Energy Posts.

You can unsubscribe at any time (read our privacy policy)