Eve Ellis Shares Insight Into SFDR Clarifications in The Drawdown

The European Commission provided much anticipated clarity as it relates to the Sustainable Finance Disclosure Regulation (SFDR), the first product labeling regulation of its kind to introduce strict labeling for ESG-related products. In September of 2022, The European Supervisory Authorities raised questions regarding SFDR, including the need to further clarify ‘sustainable investments.’ The recently released responses will provide fund managers with more guidance on how to proceed in compliance with SFDR.

Asset management partner Eve Ellis told The Drawdown that, “despite the fact the guidance retains flexibility for managers in setting their sustainable investment objective, one of the points coming out of the guidance is that the regulator sees this as a big responsibility for managers and therefore the threshold for whether something is a sustainable investment should be relatively high.”

In regards to the 500-employee threshold, Eve said, “GPs will need to check the local employment law in the country where their managers are based to make this determination.”