EU SFDR (Sustainable Finance Disclosure Regulation)
SFDR: Entity-Level Disclosures (Articles 3-5)

EU SFDR (Sustainable Finance Disclosure Regulation) SFDR-Art.3: Sustainability risk policies (SFDR Article 3) - entity-level transparency

Article 3(1) FMPs must publish on their websites information about their policies on the integration of sustainability risks in their investment decision-making process. Article 3(2) imposes the same obligation on financial advisers with regard to their investment advice + insurance advice. The Article 3 sustainability-risk policy is the entity-level statement explaining how the entity identifies, assesses and addresses sustainability risks (environmental + social + governance events that could materially negatively impact investment value). The SFDR RTS (Articles 26-28 of Commission Delegated Regulation (EU) 2022/1288) does NOT prescribe the form of the Article 3 disclosure (it is principle-based), but it must be: clear + on the entity website + freely accessible + kept up to date.

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