Sustainable Finance Disclosure Regulation (SFDR) imposes mandatory ESG disclosure obligations for asset managers and other financial markets participants. The SFDR has been introduced as a part of a package of legislative measures, alongside the EU Taxonomy, with the aim of creating a level playing field for financial market participants and asset managers on transparency in relation to sustainability risks and consideration of adverse sustainability impacts in their investment processes.

The SFDR introduced requirements for Alternative Investment Fund Managers (AIFMs) and UCITS managers to provide standardised disclosures on how ESG factors are integrated at the fund and product level. A significant portion of all the requirements applies to all asset managers, irrespective of whether they express ESG or sustainability focus, increasing reliability and trust in the markets.
Following adoption by the co-legislators, the SFDR came into force in the beginning of 2021 and has been fully applicable since the beginning of 2023.

Deutsche Börse Group is not itself in scope of the SFDR but has always been at the clients’ disposal, assisting with reporting solutions and analytics & ratings.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.