The EU Sustainable Finance Disclosure Regulation (SFDR), which has taken effect in March 2021, was one of the first regulatory initiatives stemming from the 2018 EU Sustainable Finance Action Plan. It is a sustainability-related disclosure framework for financial market participants and financial advisers focusing on the integration of sustainability risk and the consideration of adverse sustainability impact in the investment process. Since the implementation there has been criticism on its effect. In 2023, the European Commission therefor initiated a consultation on the SFDR. 

Both the Dutch financial market authority AFM and Triodos IM published a position paper on how to improve the SFDR. In this podcast episode, Portfolio Manager Rosl Veltmeijer discusses the overlap and the differences between the two positions with Zoë du Chattel, Senior Supervision Officer at AFM and Hadewych Kuiper, Managing Director at Triodos Investment Management.

One of the conclusions is that both the AFM and Triodos IM are in favor of a minimum level of disclosure for all funds to create a level-playing field and that both would like to convert the current transparency regime into a labelling regime so retail investors can easily see which product is more or less sustainable.

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