Sustainable finance refers to the process of taking environmental, social and governance (ESG) factors into account when making investment decisions. This means looking beyond the drivers of financial risk and return, and also assessing the impact that an investment could have on people or the planet.
As it looks to deliver on its Green Deal and make Europe the first climate-neutral continent by 2050, the European Union is introducing significant sustainability-related legislation in the coming years that will help clients and investors to better understand sustainability risks and help redirect capital to greener and more sustainable investments.
Sustainable Finance Disclosure Regulation
The Sustainable Finance Disclosure Regulation (SFDR) is the first piece of sustainability-related to be introduced by the European Union and came into effect on 10 March 2021. The SFDR aims to increase transparency on how financial market participants integrate sustainability considerations into their investment decision-making process.
You can find more information on how we do this and comply with the requirements of the SFDR by clicking here.