EU SFDR (Sustainable Finance Disclosure Regulation)
Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector. Requires financial market participants and financial advisers to disclose sustainability risks and adverse impacts of investment decisions. Supplemented by Delegated Regulation (EU) 2022/1288 establishing Regulatory Technical Standards including mandatory Principal Adverse Impact (PAI) indicators.
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Framework Domains (5)
Entity-Level Disclosures
Articles 3-5: Disclosure obligations at the level of financial market participants
| Code | Title |
|---|---|
| SFDR-ART3 | Sustainability Risk Policies |
| SFDR-ART4 | Principal Adverse Impacts Statement |
| SFDR-ART5 | Remuneration Policies |
PAI Indicators - Climate and Environment
Table 1 of Annex I: Mandatory climate and environment-related PAI indicators for investee companies
| Code | Title |
|---|---|
| SFDR-PAI-1 | GHG Emissions (Scope 1, 2, 3 and Total) |
| SFDR-PAI-2 | Carbon Footprint |
| SFDR-PAI-3 | GHG Intensity of Investee Companies |
| SFDR-PAI-4 | Exposure to Fossil Fuel Companies |
| SFDR-PAI-5 | Non-Renewable Energy Share |
| SFDR-PAI-6 | Energy Consumption Intensity |
| SFDR-PAI-7 | Biodiversity-Sensitive Areas |
| SFDR-PAI-8 | Emissions to Water |
| SFDR-PAI-9 | Hazardous Waste and Radioactive Waste |
PAI Indicators - Social and Governance
Table 1 of Annex I: Mandatory social and governance PAI indicators
| Code | Title |
|---|---|
| SFDR-PAI-10 | UNGC and OECD Guidelines Violations |
| SFDR-PAI-11 | UNGC/OECD Compliance Monitoring Processes |
| SFDR-PAI-12 | Unadjusted Gender Pay Gap |
| SFDR-PAI-13 | Board Gender Diversity |
| SFDR-PAI-14 | Controversial Weapons Exposure |
PAI Indicators - Sovereigns and Real Estate
Table 1 of Annex I: Mandatory PAI indicators for investments in sovereigns/supranationals and real estate assets
| Code | Title |
|---|---|
| SFDR-PAI-15 | GHG Intensity of Sovereigns |
| SFDR-PAI-16 | Investee Countries Social Violations |
| SFDR-PAI-17 | Real Estate Fossil Fuels Exposure |
| SFDR-PAI-18 | Real Estate Energy Inefficiency |
Product-Level Disclosures
Articles 6-11: Product classification and disclosure requirements
| Code | Title |
|---|---|
| SFDR-ART10 | Website Disclosures for Art 8/9 Products |
| SFDR-ART11 | Periodic Reports for Art 8/9 Products |
| SFDR-ART6 | Article 6 Products - Sustainability Risk Integration |
| SFDR-ART8 | Article 8 Products - Environmental/Social Characteristics |
| SFDR-ART9 | Article 9 Products - Sustainable Investment Objective |
Maps to 238 other frameworks
Frequently Asked Questions
What is EU SFDR (Sustainable Finance Disclosure Regulation)?
EU SFDR (Sustainable Finance Disclosure Regulation) is a compliance framework from European Union with 5 domains and 26 controls. Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector. Requires financial market participants and financial advisers to disclose sustainability risks and adverse impacts of investment decisions. Supplemented by Delegated Regulation (EU) 2022/1288 establishing Regulatory Technical Standards including mandatory Principal Adverse Impact (PAI) indicators. It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.
How many controls does EU SFDR (Sustainable Finance Disclosure Regulation) have?
EU SFDR (Sustainable Finance Disclosure Regulation) has 26 controls organised across 5 domains. The largest domains are PAI Indicators - Climate and Environment (9 controls), PAI Indicators - Social and Governance (5 controls), Product-Level Disclosures (5 controls). Each control defines specific requirements that organisations must implement to achieve compliance.
What frameworks does EU SFDR (Sustainable Finance Disclosure Regulation) map to?
EU SFDR (Sustainable Finance Disclosure Regulation) maps to 238 other compliance frameworks. The top mapping partners are NIST AI Risk Management Framework (AI RMF 1.0) (31% coverage), NIST AI 600-1 Generative AI Profile (31% coverage), EU Taxonomy Regulation (Regulation 2020/852) (31% coverage). Use our comparison tool to explore control-level mappings between frameworks.
How do I get started with EU SFDR (Sustainable Finance Disclosure Regulation) compliance?
Start your EU SFDR (Sustainable Finance Disclosure Regulation) compliance journey by running a self-assessment on our platform to identify your current compliance posture. Our AI advisory can answer specific questions about EU SFDR (Sustainable Finance Disclosure Regulation) requirements, and cross-framework mapping helps you leverage existing controls from other frameworks you may already comply with. Create a free account to access all 26 controls and track your progress.
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