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SFDR - Streamlined, Automated, Compliant.

Meet regulatory reporting requirements with the highest degree of confidence, transparency, and auditability.

Frequently Asked Questions

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The Sustainable Finance Disclosure Regulation (SFDR) is an EU regulation that aims to increase transparency in the financial sector regarding sustainability risks and impacts by requiring financial market participants and financial advisers to disclose information on how they integrate environmental, social, and governance (ESG) factors into their investment decision-making processes and advisory services.

SFDR applies for the following categories:

  • Financial Market Participants (FMPs): This includes asset managers, institutional investors, insurance companies, pension funds, and investment firms offering portfolio management services.
  • Financial Advisers: This includes firms and individuals that provide investment advice or insurance advice regarding investment products.
  • Products Marketed in the EU: Any investment funds or financial products that are marketed or distributed within the European Union.
Principle Adverse Impacts (or PAI) is a concept developed to better display negative impacts investments have on various sustainability factors. These indicators consist of 14 mandatory and31 voluntary indicators focusing on environmental and employee matters, respect for human rights, and anti-corruption and anti-bribery matters. Investors must report on all 14 core indicators, plus choose at least two additional (at least one climate and environmental-related and one social and employee-related).

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