Dutch Regulator Calls for Sustainability Impact Disclosures for all Financial Products

The Dutch Authority for the Financial Markets (AFM) has proposed reforms to the EU’s Sustainable Finance Disclosure Regulation (SFDR). They suggest replacing Article 8 and 9 classifications with a new sustainable investment labeling system and requiring all financial products to provide sustainability-related disclosures. The goal is to make the SFDR more meaningful to investors and promote sustainable investments. The AFM’s proposals come as part of the European Commission’s review of the SFDR framework, aiming to establish transparency and sustainability information in financial markets. The AFM suggests introducing sustainable investment labels with specific categories and disclosure requirements. They also propose that all financial products include disclosures on sustainability impact, including indicators for negative impacts.

AFM Paper: https://www.afm.nl/en/sector/actueel/2023/november/position-paper-SFDR

Resource: https://www.esgtoday.com/dutch-regulator-proposes-scrapping-article-8-and-9-categories-for-investment-product-sustainability-labels/

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