Zeidler Group has published a new practical guide breaking down the European Commission’s proposed overhaul of the Sustainable Finance Disclosure Regulation (SFDR), marking what the firm calls the most consequential shift in EU sustainable-finance policy since the regime first came into force.
The guide aims to give asset managers, product manufacturers and distributors a clear and structured explanation of the new framework, including the Commission’s move toward a more prescriptive, category-based system designed to close long-criticised grey areas.
According to Zeidler Group, the introduction of SFDR 2.0 represents a stark departure from the original disclosure-led approach. The updated proposal centres on three newly defined sustainability product categories, revised disclosure obligations and simplified templates, as well as naming and marketing restrictions intended to curb exaggerated environmental claims. Zeidler Group’s guide also outlines upcoming governance, data and methodology expectations that firms will need to embed across their investment and reporting processes.
The firm notes that EU policymakers are attempting to replace ambiguity with clarity by tightening investor-protection requirements and reducing inconsistent market practices. While the final legislative text and implementation timetable are still to be confirmed, Zeidler Group stresses that early preparation will be crucial. Its guide encourages firms to develop a high-level assessment of potential impacts, identify product lines most affected by the changes and begin mapping internal processes against the new standards.
SFDR 2.0 is therefore positioned as a transformative moment for the industry. Zeidler Group argues that the move to a threshold-driven, category-based regime will reshape product design, investment strategies and external communications across the entire value chain.
The reforms will also formally acknowledge SFDR’s function as a quasi-labelling system—something market participants had previously inferred through divergent interpretations of Articles 8 and 9. By repealing the Level 2 Delegated Regulation and narrowing the scope of product-disclosure requirements, the European Commission aims to streamline the framework and reduce administrative burdens for financial advisers and portfolio managers.
Through its detailed practical guide, Zeidler Group aims to support firms as they prepare for the transition, equipping teams with the clarity needed to implement SFDR 2.0 efficiently and confidently.
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