Part of the EU’s legislative package to regulate financial market participants’ ESG disclosure and protect investor interests, the SFDR is one of the most stringent mandatory ESG disclosure requirements in the world. If you are an entity selling financial products or providing financial advisory services in the EU, the SFDR applies to you.

High-level SFDR disclosure at entity-level had gone into effect on Mar 10, 2021. Beginning Jan 1, 2023, financial market participants and financial advisors under SFDR Article 4 are required to disclose additional details at entity- and product-level. These details include 20 metrics in ANNEX I of the Regulatory Technical Standards (RTS):
18 mandatory metrics in Table 1
2 additional metrics (selected from 46 metrics in Table 2 & 3)

After the first year of PAI statement publication, entities are also required to disclose historical performances on a year-on-year basis for all reporting metrics.