The European sustainable finance landscape is undergoing a major transformation, with the EU Platform on Sustainable Finance proposing a new categorisation framework for the Sustainable Finance Disclosure Regulation (“SFDR”). This initiative aims to enhance transparency, address inconsistencies in market interpretation, and provide clearer guidance for financial market participants (“FMPs”) and investors. By introducing a structured classification system, the proposal seeks to align financial products with sustainability objectives more effectively. As regulatory discussions continue, understanding these changes is crucial for stakeholders navigating the evolving sustainable finance framework.
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