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(BRUSSELS) - New rules on sustainable finance disclosure, aimed at strengthening and improving how sustainability related information is disclosed in the financial sector, came into force in the EU on Wednesday.
The Sustainable Finance Disclosure Regulation (SFDR), seen as a cornerstone of the EÚ Commission s Action Plan on Sustainable Finance, aims to trigger changes in behavioural patterns in the financial sector, discouraging greenwashing, and promoting responsible and sustainable investments.
The SFDR will set common EU rules on: i) how financial product manufacturers and financial advisers should inform end-investors about sustainability risks, ii) how the impact of investments on the environment and society should be disclosed, and iii) how financial products that are marketed as sustainability-related actually meet that ambition.