This position paper provides specific recommendations from a responsible investor perspective on the European Commission’s SFDR 2.0 proposal. It focuses on priority areas where the PRI, as a global network of investors integrating environmental, social and governance considerations into their investment and ownership practices, can offer practical insights to support consistent and effective implementation.

On 26 November, the European Commission published its proposal to revise the Sustainable Finance Disclosure Regulation (SFDR). The PRI welcomes the introduction of three product categories – notably the new Transition category – as a key opportunity to mobilise capital in support of the Clean Industrial Deal and the shift to a net-zero economy. Simplified templates and clearer rules on sustainability and impact claims should also improve usability and strengthen investor protection.

However, several elements of the proposal risk weakening the current framework. The removal of certain product-level disclosures and the reduced transparency on engagement practices could limit comparability and oversight. Persistent issues – including inconsistent asset class treatment and limited coherence with the wider EU sustainable finance framework – also remain.

Based on survey findings and in-depth interviews with signatories, the PRI sets out focused recommendations to ensure the revised SFDR delivers clear, comparable information, protects investors, and supports capital reallocation towards sustainable activities.

Download the position paper in full below.

 

Downloads

Topics