Will the SFDR Prevent Greenwashing?

For the first time, fund managers must provide information about ESG risks and the negative impact of their investments. Could SFDR stop greenwashing? 

Hortense Bioy, CFA 29 June, 2021 | 8:56AM
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The Sustainable Finance Disclosure Regulation (SFDR) came into force on March 10, 2021 and supplements the current rulebooks governing financial products.

SFDR requires, for the first time, that fund managers provide information about the ESG risks and negative impact of their investments on society and the planet, aiming to specifically tackle the issue of greenwashing.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Hortense Bioy, CFA

Hortense Bioy, CFA  is global head of sustainability research at Morningstar

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