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EBA/EIOPA/ESMA: Opinion on the assessment of the SFDR

18 Jun 2024 (UPDATED: 13 Mar 2026) International 1 min read

In this Opinion, the ESAs focus on ways to introduce simple and clear categories for financial products.  The simplifications consist of two voluntary product categories, “sustainable” and “transition”, that financial market participants should use to ensure consumers understand the purpose of the products. The rules for the categories should have a clear objective and criteria to reduce greenwashing risks.  The ESAs recommend that the EC consider the introduction of a sustainability indicator that would grade financial products such as investment funds, life insurance and pension products.  Other areas covered by the Opinion include: appropriate disclosures for products outside the two categories to reduce greenwashing; improvements to the definition of sustainable investments; simplification to the way disclosures are presented to investors.


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