SFDR (Sustainable Finance Disclosure Regulation)
SFDR is an EU regulation requiring financial market participants to disclose how they integrate sustainability risks and consider adverse sustainability impacts in their investment decisions.
What is SFDR (Sustainable Finance Disclosure Regulation)?
The Sustainable Finance Disclosure Regulation requires asset managers, pension funds, and other financial market participants to classify their funds as Article 6 (no sustainability claims), Article 8 (“light green” — promoting environmental or social characteristics), or Article 9 (“dark green” — sustainable investment as the objective). SFDR also requires disclosure of principal adverse impact (PAI) indicators, including carbon footprint and GHG intensity of investments. This creates demand for investee company emissions data.
Practical Examples
An asset manager classifies its climate-focused fund as Article 9 and reports the weighted average carbon intensity of the portfolio.
A pension fund discloses the principal adverse impacts of its investments, including the carbon footprint per million euros invested.
How Climatise Helps
Climatise provides the emissions data that investee companies need to support their investors’ SFDR reporting obligations.
Book a DemoRelated Terms
Frequently Asked Questions
Need help understanding your carbon data?
Climatise turns complex emissions data into clear, useful reports. Book a call and we'll walk you through it.
Book a Demo