6 Charts on SFDR Funds

Article 8 or 9? New ESG labels introduced by the EU can be confusing. We dive into the data to see if different SFDR classifications make a difference to investors

Sunniva Kolostyak 2 September, 2021 | 12:07AM
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There is a new reporting requirement in town called SFDR, which is meant to make it easier for investors to understand whether a fund is making environmental, social and governance (ESG) considerations when investing.

While another acronym is the last thing the investment world needs, the Sustainable Finance Disclosure Regulation (SFDR) does make it easier to identify sustainable options. Funds in Europe are now classified in three groups according to how detailed their ESG reporting is. Article 6 contains all managed products, but today we will be looking specifically at the more sophisticated Article 8 and 9 to find out what the difference really means for investors.

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Sunniva Kolostyak  is data journalist for Morningstar.co.uk

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