21 Apr 2021
As of 10 March 2021, all entities providing investment or insurance services within the EU must comply with its Sustainable Finance Disclosure Regulation (SFDR). Non-EU actors – who have subsidiaries located within the EU – are also impacted.
SFDR is a framework that provides a harmonised approach to the sustainability-related disclosures which financial market participants (FMPs) and financial advisors (FAs) must make to investors in the EU.
SFDR seeks to ensure investors of all kinds are given more transparency about the sustainability‐related impacts of their investments in financial products. As an ESG ETF pioneer, we welcome this initiative because it should help everybody make more mindful investment decisions, build more resilient portfolios and secure a brighter financial future over the long term.
Under SFDR, FMPs and FAs must now:
Products which do not promote environmental and/or social characteristics, but may apply some basic environmental or social safeguards
Products which promote environmental and/or social characteristics as part of their investment strategy, provided that the companies in which the investments are made follow good governance practices. At Lyxor, we have a number of Article 8 funds:
Products which have a specific sustainable investment objective - for example, a financial product built specifically to support the low carbon transition and achieve the long‐term temperature goals of the Paris Agreement. At Lyxor, we have a number of Article 9 funds:
If you want to see the full list of our SFDR 8 and 9 funds today, click here. Alternatively, if you have any questions, please do reach out to your relationship manager who will be happy to arrange a more detailed discussion with you on sustainable investing and how to better integrate it in your portfolio. Together, we can help change the world.