The new year is still in its nascent stage, but already firms have had a full agenda when it comes to regulation on sustainable investment.
On 1 January, the EU’s Sustainable Finance Disclosure Regulation (SFDR) Level 2 rules went live, strengthening the reporting requirements for sustainable and ESG-labelled financial products.
This has already resulted in a number of fund groups reclassifying their funds to avoid having the greenwashing finger pointed at them.
Now, most industry participants will have been prepared for this, but in the wider context it comes off an extremely busy year of responsible and sustainable investment regulation.
While much of this is necessary and should bring about greater clarity for end-investors, it is not for the faint-hearted and firms need to be prepared to roll up their sleeves.
Read the full comment in ESG Clarity’s February 2023 digital magazine.