EU SFDR (Sustainable Finance Disclosure Regulation)
SFDR: Pre-Contractual Product Disclosures (Articles 6-9)

EU SFDR (Sustainable Finance Disclosure Regulation) SFDR-Art.8: Article 8 'light-green' product disclosures - promotion of environmental or social characteristics

Article 8 imposes pre-contractual disclosure obligations on financial products that, among other characteristics, promote environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices. Article 8(1) requires the pre-contractual disclosure to include: (a) information on how those characteristics are met; (b) if an index has been designated as a reference benchmark, information on whether and how this index is consistent with those characteristics. The detailed format follows the SFDR RTS Annex II template (Commission Delegated Regulation (EU) 2022/1288 Articles 14-23 + Annex II): asset-allocation pie chart with the planned minimum share of investments aligned with E/S characteristics + the planned minimum share of sustainable investments (Article 2(17)) within the E/S allocation + the planned minimum share of Taxonomy-aligned investments + the optional 'transitional + enabling activities' breakdown + the DNSH application to sustainable investments + the methodologies used + asset-allocation excluding cash + benchmark choice. Article 8 products are commonly referred to as 'light-green'.

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