SFDR Implementation Report: Is the SFDR causing confusion or clarity?

We are delighted to present the findings of our latest research study investigating the implementation of the SFDR within Asset Managers.

The application of Level 2 rules for the SFDR was a pivotal moment in ESG regulation – yet a lack of clarification around disclosures has left many managers in breach of the rules. Now they are racing to catch up, so as not to be penalised or accused of misleading investors.

Our research was undertaken during Q1 2023, after the implementation deadline of the SFDR Level 2 on 1 January 2023. The dual research study comprised survey of 75 asset managers with some involvement in decision-making around the SFDR and the EU Taxonomy Regulation and in-depth research and analysis of 25 asset managers with specific regard to PAIs and entity/product level disclosures.

Based on this research, we have made the following key findings, which we address in detail in the report:

We hope you find this report interesting, if you would like to discuss anything SFDR or ESG related we are on hand and ready to help you.

Novatus has developed SFDR Benchmark Analysis software, a unique tool that provides a RAG assessment of your firm’s public disclosures and policies at both entity and product level.

Please contact Andrew Hedley, Partner, Risk and ESG Advisory Practice, ahedley@novatusadvisory.com.