Travers Smith's Sustainability Insights: Six fixes for SFDR 2.0

At the end of last year, we expressed disappointment at the European Commission’s proposal for a revised Sustainable Finance Disclosure Regulation (SFDR 2.0).  We acknowledged that there were some positives, but we argued that private markets were an afterthought in the re-design of the EU's landmark sustainable finance regulation.  The text omits important detail.  Some provisions would impose impractical requirements on private funds; others would lead to unintended – and undesirable – consequences. 

Given the role of private markets in driving change, that's very unfortunate.