Organizations across the globe are integrating sustainable finances into their operations. As a part of the transition towards a low-carbon and resource-efficient economy, the European Commission has implemented new and updated regulations to strengthen its action plan on sustainable finance. The EU Taxonomy is regarded as the key component of the action plan. There are a handful of other regulations that are being introduced for organizations to get familiar with. One of those is the Sustainable Finance Disclosure Regulation, or SFDR assists in reorientating capital toward more sustainable businesses and increasing transparency on sustainability among financial institutions.
So how does the SFDR framework help in improving the transparency and sustainability of businesses within the European Union? Let's find out.
What is SFDR?
The first regulation set up by the EU, SFDR, or the Sustainable Finance Disclosure Regulation, aims to reorientate capital flow toward sustainable finance. SFDR provides transparency on sustainability within the financial market to prevent greenwashing.
https://www.sganalytics.com/blog/what-is-sustainable-finance-disclosure-regulation/
Submitted July 03, 2023 at 03:08AM by Beautiful-Ad-7743 https://ift.tt/4KAFo6Q
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