Decoding the SFDR 2.0 Revision: implications for financial institutions

The Sustainable Finance Disclosure Regulation (SFDR), adopted in 2019 and effective since March 2021, has served as a cornerstone of the EU’s sustainable finance framework. Being the first of its kind in the EU, the implementation of the current SFDR (now called "SFDR 1.0") has led to significant challenges: It has been criticised for its complexity, lack of clarity, and difficulties in practical application.

On November 20, 2025, the European Commission unveiled its proposals for SFDR 2.0. The new draft aims to ease administrative and disclosure burdens while safeguarding investor interests by introducing clearer product categories, minimum requirements, and more streamlined disclosure obligations.

Our latest guide, available via the link below, offers a practical overview of the SFDR 2.0 proposals. It highlights the key changes introduced by the proposal, including revised product categories, minimum thresholds and exclusions, enhanced disclosure requirements, and new rules on the use of sustainability-related claims in product names and marketing materials. The guide also explores how SFDR 2.0 interacts with other EU sustainability regulations, provides a possible implementation timeline, and addresses frequently asked questions from the market.

For a deeper dive into these developments, you can also access the recording of our recent webinar on this topic.

View our SFDR 2.0 guide