The Council and Parliament have made meaningful progress refining the Commission’s SFDR proposal, retaining the core elements which will deliver simplification and improve sustainability disclosure for end-investors. Looking ahead to the trilogues, co-legislators should prioritise the following:
Maximising coherence between SFDR, MiFID and PRIIPS;
Constructing the Transition category to facilitate transition finance in practice; and
Maintaining a proportionate approach to disclosures consistent with simplification objectives.