The Sustainable Finance Disclosure Regulation (SFDR)
The European Union has designed an Action Plan on sustainable finance to drive action by the European financial sector.
A key part of this action plan is the Sustainable Finance Disclosure Regulation (SFDR), which came into force on 10 March 2021. The SFDR sets disclosure standards relating to ESG risk-mitigation policies and reinforces ESG considerations in the investment decision-making process.
At Rothschild & Co, we believe that the SFDR regulation should not be approached as a simple regulatory constraint. It constitutes an opportunity for our investment businesses to develop investment strategies in line with global sustainability objectives while competing on equal terms with other market players.
Rothschild & Co has set up a working group focused on implementing the recommendations of the Taskforce on Climate related Financial Disclosures and the SFDR regulation, working alongside the Group Responsible Investment Committee and the affected investment businesses.