What exactly is SFDR? That's a question we address more directly in this blog post but, in brief, SFDR stands for Sustainable Finance Disclosure Regulation. Recently implemented by the EU, SFDR requires investment companies to report on the sustainability of the companies in which they are invested.
The regulation affects all Financial market participants (FMPs) and financial advisors who operate their businesses in the EU, with new guidelines and requirements about what sustainability disclosures investment organizations will need to make about the companies in their portfolios.
Or, to put it more simply, SFDR is an EU-wide attempt to promote sustainability in the financial system. In the infographic below, we lay out everything you need to know.
For more on how to prepare for SFDR disclosure, download our recent checklist now.
![](https://insights.diligent.com/wp-content/uploads/2021/10/IG-Everything-You-Need-to-Know-About-SFDR-Disclosures.png)
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Media Highlights
Environmental, social and governance (ESG) issues have become more complex and multifaceted than ever before. At the same time, ESG continues to ascend on board and leadership agendas.
In this buyer’s guide, we explore what a market-leading ESG solution should look like and highlight the key areas organisations should be prioritising as they embark on their search.