SFDR: Understanding EU’s Sustainable Finance Disclosure Regulation

Category: Technology

Organizations across the globe are integrating sustainable finances into their operations. As a part of the transition towards a low-carbon and resource-efficient economy, the European Commission has implemented new and updated regulations to strengthen its action plan on sustainable finance. The EU Taxonomy is regarded as the key component of the action plan. There are a handful of other regulations that are being introduced for organizations to get familiar with. One of those is the Sustainable Finance Disclosure Regulation, or SFDR assists in reorientating capital toward more sustainable businesses and increasing transparency on sustainability among financial institutions.