Sustainable Finance Disclosure Regulation

Transparency on the financial market: the SFDR creates clarity

If you move money, you move markets. With the SFDR, the EU has therefore set a powerful lever in motion to promote sustainability. Get an initial overview and find out how VERSO can support you.

Animation für das Text-Media-Element Animated planet mid Animated planet mini
Sprössling, der aus Cent-Münzen wächst

New requirements for financial products: Goodbye greenwashing

With the Green Deal, the EU has committed itself to sustainable economic activity. It was clear from the start: Sustainability efforts really take off when they have an impact on financial flows.

Foto von einem nebligen Wald
Animation für das Text-Media-Element

The SFDR obliges financial product providers to be transparent

In 2019, the EU adopted one of the first new measures to achieve the Green Deal targets: The Sustainable Finance Disclosure Regulation (SFDR) or EU Disclosure Regulation. It supplements the CSRD and the EU taxonomy and obliges financial product providers to be more transparent.

Their task: to prevent greenwashing of financial products – and to make the sustainability aspects of financial products more comparable.

Among other things, this is based on three SFDR categories for financial products:

Article 9

“Dark green products” or “impact products” with a sustainable investment objective

Article 8

“Light green products” or “ESG products” with environmental and/or social sustainability features

Article 6

Traditional financial products with little or no sustainability criteria

SFDR: Facts at a glance

Since 2023, the extended disclosure regulation for financial products in accordance with Articles 8 and 9 applies. Companies must disclose the specific ESG objectives/characteristics and describe how they intend to achieve them. Of course, this also includes an analysis of the results.

Lachende Frau erhält BeifallAnimation für das Text-Media-Element

Which companies are affected by the SFDR?

The SFDR is aimed specifically at “financial market participants” in the EU, such as:

  • Credit institutions/banks
  • Investment firms
  • Asset managers/capital management companies
  • Insurance company

VERSO supports you with your reporting.

Double materiality in the SFDR

Parallel to the dual materiality of the CSRD, the interactions between financial products and the environment are also considered in the SFDR. “Sustainability risk” and “principal adverse impact” are the two sides of the coin here.

Sustainability Risk

… examines how ESG aspects influence the financial product or global business activities. Companies must also explain how they deal with these sustainability risks.

Principal Adverse Impact

… creates transparency about how the product or financial trading affects the environment and society. Financial market participants are obliged to submit an annual Principle Adverse Impact Statement (PAIS).

How are SFDR, CSRD and the EU taxonomy related?

You already know that the SFDR is an important part of the Green Deal. But how does all this fit in with the other directives and regulations?


It obliges financial market participants to disclose sustainability information.

Factsheet: SFDR

EU taxonomy

It defines which economic activities are classified as sustainable. can be used.

Factsheet: EU taxonomy


It standardizes and expands the sustainability reporting of companies.

Factsheet: CSRD
Infografik: Zusammenhang zwischen CSRD, EU-Taxonomie und SFDR

We support you!

From the analysis of your status quo to the finished report: together with the experts from the Silvester Group, we advise and support you in all matters relating to SFDR reporting for your financial products.