International
Nordea Funds | EU Regulations on Sustainable Finance | SFDR Explained
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In 2018, the EU released an action plan for financing sustainable growth – as the Union aims to be climate-neutral by 2050.
And now is the time to take the next big towards an economy with net-zero greenhouse gas emissions. With the Sustainable Finance Disclosure Regulation (SFDR).
This SFDR is a key part of the action plan and requires all financial market participants, investment firms and funds companies, in the EU to disclose exactly how sustainable and ESG-friendly their investment products are.
Basically, the SFDR distinguishes funds that take sustainability factors into consideration from the ones that don’t. The goal is to address environmental, social and governance (ESG) concerns and increase transparency and liability on sustainability among financial institutions.
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