Market Insight: New SFDR Requirements And The Supplier Landscape

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Executive Summary

The Sustainable Finance Disclosure Regulation (SFDR) was introduced by the European Commission to improve transparency for sustainable investment products, to prevent greenwashing and to elevate transparency around ESG and sustainability claims across the financial market. Financial services firms have been, and still are, in the process of establishing what measures will need to be leveraged to align with the regulation. The introduction of the SFDR has also underscored the relevance of software solutions to automate and optimize reporting, particularly given the categorization of funds between Articles 6, 8 or 9 – all of which warrant different considerations. This report aims to illuminate the requirements mandated under the SFDR and unpack the offerings available to support financial services firms disclosing for the SFDR both at the product and the entity level. 

Table of contents

Financial Services Firms Will Struggle To Meet New Requirements In The EU’s SFDR
The SFDR Affects A Broad Swathe Of Firms, Data, Disclosures And Product Decisions
Three Kinds Of Data Providers And Managers Are Supporting Firms With SFDR Reporting

Table of figures

Figure 1: Timeline Of SFDR Mandates At The Entity And Product Levels
Figure 2: Types Of Firms Mandated To Report Under The SFDR 
Figure 3: Impact Of The SFDR On Firms By Geography Of Operations
Figure 4: Definitions And Disclosure Obligations Under SFDR Articles 6, 8 and 9 Product Classifications
Figure 5: The EU’s Principal Adverse Impacts Indicators And Their Associated Metrics
Figure 6: SFDR: Entity-Level Vs Product-Level Disclosures 
Figure 7: Sample Financial Data Management Platforms With SFDR-Relevant Capabilities
Figure 8: Sample Financial and Climate Data Providers With SFDR-Relevant Capabilities
Figure 9: Sample ESG Reporting Solutions With SFDR-Relevant Capabilities

About the authors

Ryan Skinner

Research Director, Net Zero & Climate Risk
Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zero strategies, carbon management, climate risk and technology. Prior to joining Verdantix, Ryan was a principal analyst at Forrester Research, where he initiated the research into ESG data and analytics offerings. He also has extensive experience of helping software companies with their messaging, positioning, market and technology strategies. Ryan studied at Duke University, the University of Manchester and the University of Oslo, and speaks Norwegian fluently.

Maya Hilmi


Maya is a Net Zero, Climate Risk Analyst. She is currently specialising in carbon management, ESG regulations, and identifying climate risk solutions. Prior to joining Verdantix, Maya interned at Cardano Advisory where she gained experience in covenant, sustainability, and pensions corporate finance matters. Maya holds a master's degree in Conflict Resolution in Divided Societies with Distinction from King's College London, and an undergraduate degree in International Relations from SOAS, University of London.

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