With the Sustainability Disclosure Regulation (SFDR) coming into effect, fund managers, among others, are within the scope of this EU regulation. Since 2019, the SFDR has required financial market participants and financial advisers to comply with extensive disclosure and transparency obligations. The SFDR applies, among others, to fund managers acting as managers of alternative investment funds (AIFM) as well as providers of pension products. The transparency requirements include both entity-level and product-level disclosure obligations.
Entity-level and product-level obligations
This EU-Regulation aims to create transparency for investors regarding sustainability.
- Entity-related obligations: Financial market participants are required to state whether they consider the principal adverse impacts of investment decisions on sustainability factors. If sustainability factors are considered, the carbon footprint, for instance, must be disclosed. Failure to consider sustainability criteria must be explained.
- Product-related obligations: Financial market participants are required to disclose, for each financial product, how sustainability risks are integrated into investment decisions. If financial products are marketed with environmental or social characteristics, enhanced disclosure obligations apply. These include, among others, regular reporting on the achievement of sustainability objectives.
greenValue and Sustainability
greenValue is not a financial market participant and thus does not fall within the scope of the SFDR. Through their biennial Sustainability Report, greenValue emphasizes its commitment to sustainability. The report documents internal corporate sustainability initiatives, including digitalization and resource conservation. Furthermore, measures to deliver services that contribute to reducing CO2- emissions at the project level are presented. Our company has in-depth knowledge and practical expertise in sustainability. Based on this experience, greenValue is an experienced partner for financial market participants in achieving their sustainability goals and documenting compliance with their disclosure obligations.
Source: May 19, 2025, www.greenvalue.de
