{"id":11132,"date":"2025-09-15T14:59:39","date_gmt":"2025-09-15T14:59:39","guid":{"rendered":"https:\/\/blufin.one\/revision-of-sfdr-2025-more-clarity-for-investors-more-challenges-for-asset-managers\/"},"modified":"2026-01-14T14:08:44","modified_gmt":"2026-01-14T14:08:44","slug":"revision-of-sfdr-2025-more-clarity-for-investors-more-challenges-for-asset-managers","status":"publish","type":"post","link":"https:\/\/blufin.one\/en\/revision-of-sfdr-2025-more-clarity-for-investors-more-challenges-for-asset-managers\/","title":{"rendered":"Revision of SFDR 2025: more clarity for investors, more challenges for asset managers?"},"content":{"rendered":"<p>Launched in 2019, the <strong>Sustainable Finance Disclosure Regulation (SFDR<\/strong> ) was intended to provide investors with a clear framework for comparing financial products on the basis of sustainability criteria. In practice, the distinction between the famous <em>articles 6, 8 and 9<\/em> has served as a market classification, but without being designed as such, leading to numerous gray areas, heterogeneous use and risks of <strong>greenwashing<\/strong>. <\/p>\n<p>Following several consultations and technical opinions, the <strong>European Commission<\/strong> is now preparing to propose a <strong>structural revision of the SFDR<\/strong>. At the heart of the debates: the creation of a <strong>new official classification of funds<\/strong> (with categories and minimum criteria), the introduction of a <strong>common sustainability indicator<\/strong> and better articulation with the CSRD, Taxonomy and PAI indicators. <\/p>\n<p>This reform, expected by the end of 2025, should mark a <strong>major turning point for European sustainable finance<\/strong>, by clarifying the rules of the game and boosting investor confidence.<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>What&#8217;s happened so far, a new architecture taking shape:<\/strong><\/h4>\n<p>Since it came into force in 2021, the <strong>SFDR <\/strong>has rapidly taken on a central role in the sustainable finance ecosystem.<\/p>\n<p>However, the distinction between <em>Article 6, 8 and 9<\/em> funds was not intended to constitute an <strong>official classification<\/strong>: they were primarily technical categories linked to transparency obligations. In practice, these articles were used as <strong>market labels<\/strong>, creating windfall effects, legal uncertainties and heterogeneous application by asset managers. <\/p>\n<p>Faced with these abuses, the European Commission launched a <strong>public consultation<\/strong> in 2023 and mandated its technical bodies to propose solutions. This process involved three key stages: <\/p>\n<ul>\n<li><strong>The recommendations of the three European Supervisory Authorities (ESAs &#8211; EBA, ESMA, EIOPA)<\/strong> (June 2024):\n<ul>\n<li>Proposal to create <strong>two voluntary categories<\/strong> for financial products:\n<ul>\n<li><strong>Sustainable&#8221;<\/strong> funds <strong>,<\/strong> investing primarily in sustainable activities as defined by the Taxonomy and SFDR definitions;<\/li>\n<li><strong>Transition&#8221;<\/strong> funds, integrating transformation and progressive improvement strategies.<\/li>\n<\/ul>\n<\/li>\n<li>Introduction of a <strong>common sustainability indicator<\/strong>, expressed in a simple and comparable way, applicable to all financial products.<\/li>\n<li>We recommend that <strong>these new categories be tested with retail investors<\/strong> before being rolled out, to ensure that they are understood and trusted.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li> <strong> The contribution of the European Platform on Sustainable Finance<\/strong> (December 2024) :\n<ul>\n<li>Proposal for a slightly different architecture, in <strong>three categories<\/strong>:\n<ul>\n<li><strong>&#8220;Sustainable&#8221;,<\/strong> for products aligned with clear sustainable objectives and significant thresholds;<\/li>\n<li>&#8220;<strong>Transition&#8221;,<\/strong> for those accompanying a measurable improvement trajectory;<\/li>\n<li>&#8220;<strong>ESG Collection&#8221;,<\/strong> for products incorporating ESG criteria without a strong commitment to sustainability or transition.<\/li>\n<\/ul>\n<\/li>\n<li>Introduction of an <strong>&#8220;unclassified&#8221;<\/strong> status for fonds that do not fall into any of the three categories.<\/li>\n<li>Definition of <strong>minimum criteria<\/strong> (sustainable investment thresholds, exclusion of certain activities, compliance with DNSH and minimum safeguards).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>The European Commission&#8217;s roadmap<\/strong> (2025) :<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>In its <strong>work program<\/strong>, the Commission has confirmed that it will present a <strong>legislative proposal to revise the SFDR in the fourth quarter of 2025<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>This review will draw on the <strong>recommendations of the ESAs<\/strong>, the <strong>Platform&#8217;s proposals<\/strong> and the results of <strong>public consultations<\/strong>, in order to define the new regulatory architecture.<\/p>\n<p>&nbsp;<\/p>\n<p>-&gt; This process shows a <strong>gradual convergence<\/strong>: the &#8220;article 6\/8\/9&#8221; logic will be abandoned in favor of an <strong>official classification of sustainable financial products<\/strong>, structured around clear categories with minimum criteria and a common sustainability indicator.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>What&#8217;s in store for the autumn and the rest of 2025<\/strong><\/h4>\n<p>Autumn 2025 will be a <strong>pivotal moment<\/strong> for the reform of the SFDR. After more than two years of debate, the European Commission is <em>about to take a decisive step<\/em>. <\/p>\n<ul>\n<li><strong>Finalization of the impact study<\/strong><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>In spring 2025, the Commission launched a <strong>Call for Evidence<\/strong> to inform the impact assessment of the reform.<\/li>\n<li>The aim of this exercise was to measure the costs and benefits of a new official classification, test different scenarios (2 or 3 categories, mandatory or voluntary sustainability indicator) and gather feedback from financial players, NGOs, national regulators and investors.<\/li>\n<li>The results should feed into the final drafting of the legislative proposal.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Expected trade-offs<\/strong><\/li>\n<\/ul>\n<p>Several key points remain to be decided:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><strong>Architecture with two or three categories<\/strong>: the ESAs advocate a simpler system (Sustainable \/ Transition), while the Platform would like to add an intermediate category (ESG Collection).<\/li>\n<li><strong>Minimum thresholds and criteria<\/strong>: what percentage of sustainable investments qualifies a fund as &#8220;Sustainable&#8221;? What are the mandatory indicators for &#8220;Transition&#8221; funds? <\/li>\n<li><strong>Common sustainability indicator<\/strong>: its form (pictogram, score, numerical indicator) and whether or not it should be mandatory remain to be defined.<\/li>\n<li><strong>Link with other regulations<\/strong>: consistency with the <strong>CSRD<\/strong>, <strong>Taxonomy<\/strong> and <strong>PAI indicators<\/strong> is essential to avoid duplication and maximize the usefulness of data.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h4><\/h4>\n<h4><strong>Political calendar :  <\/strong><\/h4>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><strong>October 2025<\/strong>: final internal discussions at the Commission, incorporating the opinions of technical departments and stakeholders.<\/li>\n<li><strong>Q4 2025<\/strong>: <strong>publication of the SFDR revision proposal<\/strong> in the Commission&#8217;s legislative program.<\/li>\n<li>Once adopted, the text will be forwarded to the <strong>European Parliament and Council<\/strong> for examination and negotiation (probably in 2026).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>-&gt; In concrete terms, the next few months will be decisive: the Commission will have to strike a balance between <strong>simplicity, ambition and credibility<\/strong>, under pressure from two opposing camps:<\/p>\n<ul>\n<li>on the one hand, financial players calling for <strong>lower costs and clearer rules<\/strong>;<\/li>\n<li>on the other hand, NGOs and institutional investors are calling for a <strong>demanding and robust classification<\/strong> system, to limit greenwashing and maintain European leadership in sustainable finance.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>Points to watch and implications for management companies<\/strong><\/h4>\n<p>The revision of the SFDR is not just a technical exercise: it will have a <strong>direct impact<\/strong> on the product strategy, communication and governance of asset management companies. Several points deserve particular attention right now: <\/p>\n<ol>\n<li><strong>Anticipating the new classification<\/strong>\n<ul>\n<li>The &#8220;article 6\/8\/9&#8221; system should disappear in favor of official categories.<\/li>\n<li>Each fund will have to be <strong>repositioned<\/strong> according to the new criteria<em>(Sustainable<\/em>, <em>Transition<\/em>, or other).<\/li>\n<li>This means <strong>re-examining the consistency between name, strategy and legal documentation<\/strong> to avoid any risk of mismatch.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Aligning thresholds and criteria<\/strong>\n<ul>\n<li>Even if the minimum thresholds (percentage of sustainable investments, sector exclusions, DNSH requirements and social safeguards) have not yet been decided, it is prudent to test different scenarios.<\/li>\n<li>Managers can already <strong>simulate portfolios<\/strong> with several threshold assumptions to identify funds &#8220;at risk&#8221; of downgrading.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Preparing for the sustainability indicator<\/strong>\n<ul>\n<li>The introduction of a common sustainability indicator is almost certain.<\/li>\n<li>This means strengthening <strong>systems for collecting, consolidating and controlling ESG data<\/strong>, in order to produce robust, auditable figures.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strengthening product governance<\/strong>\n<ul>\n<li>The new categories should be accompanied by <strong>more explicit and comparable criteria<\/strong>.<\/li>\n<li>Management companies will need to put in place <strong>clear processes for validating funds<\/strong>, monitoring thresholds and managing deviations (escalation, communication, remediation).<\/li>\n<\/ul>\n<\/li>\n<li><strong>Communication and customer relations<\/strong>\n<ul>\n<li>Investors will need to understand the logic behind the new classification.<\/li>\n<li>We&#8217;ll need to prepare an <strong>educational speech<\/strong> explaining the difference between the old &#8220;article 8\/9&#8221; categories and the new ones, and clarifying what each term covers.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>-&gt; In summary, the revision of the SFDR is both an <strong>opportunity<\/strong> and a <strong>risk<\/strong>:<\/p>\n<ul>\n<li>An opportunity to strengthen the credibility and comparability of sustainable financial products.<\/li>\n<li>A risk if the transition is poorly anticipated, with reclassified funds or a loss of customer confidence.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><strong>  !! Timeline of the transition from the current classifications !!!<\/strong><\/h3>\n<ul>\n<li><strong>Today (2025)<\/strong><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The Article 6, Article 8 and Article 9 categories remain <strong><u>in full force and effect<\/u><\/strong>.<\/li>\n<li>The Commission has acknowledged that this system is used as a <strong>market classification<\/strong> system, even though it was not designed as such.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Q4 2025<\/strong><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The <strong>European Commission<\/strong> is due to publish its <strong>legislative proposal for the revision of the SFDR<\/strong>, which will include the <strong>new official classification of funds<\/strong> (probably 2 or 3 categories).<\/li>\n<li>This proposal will officially mark the <strong>end of the use of articles 6\/8\/9<\/strong> as a reference system.<\/li>\n<\/ul>\n<\/li>\n<li><strong>2026 &#8211; 2027<\/strong><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><strong>Legislative negotiations<\/strong> (European Parliament + EU Council).<\/li>\n<li>Depending on precedents (initial SFDR, CSRD), it takes <strong>12 to 24 months<\/strong> to reach an adopted text.<\/li>\n<\/ul>\n<\/li>\n<li><strong>2027 &#8211; 2028<\/strong> <em>(estimate)<\/em><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>If the revised regulation is adopted in 2026, a <strong>phased implementation from 2027\/2028<\/strong> is the most likely scenario.<\/li>\n<li><strong>Articles 6\/8\/9 would be phased out<\/strong> and replaced by the new categories.<\/li>\n<li>A <strong>transitional period<\/strong> is almost certain (e.g. 1 to 2 years) to give management companies time to adapt their prospectuses, DIC\/PRIIPs and reporting.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>Conclusion<\/strong><\/h4>\n<p>The revision of the <strong>SFDR<\/strong> marks an important step for the future of European sustainable finance, aimed primarily at putting an end to a period of legal uncertainty and practical laxity.<\/p>\n<p>The European Commission is preparing to present, by the end of 2025, a new framework that should structure the market around <strong>official categories<\/strong>, accompanied by <strong>minimum criteria<\/strong> and a <strong>common sustainability indicator<\/strong>.<\/p>\n<p>But the level of ambition remains to be defined: <strong>between the desire for simplification<\/strong> expressed by certain players and the <strong>need to preserve the integrity of<\/strong> the market in the face of the risks of greenwashing, the balance seems compromised.<\/p>\n<p>For management companies, the stakes are twofold:<\/p>\n<ul>\n<li><strong>anticipate the reorganization of portfolios<\/strong>, documentation and communication,<\/li>\n<li><strong>be prepared to robustly justify<\/strong> the thresholds and commitments that will underpin the new classification.<\/li>\n<\/ul>\n<p>-&gt; The revision of the SFDR will therefore be a full-scale test of Europe&#8217;s ability to combine <strong>competitiveness, transparency and sustainability<\/strong> within a regulatory framework that is both demanding and operational.<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>  ! To remember:<\/strong><\/h4>\n<ul>\n<li><strong>There is as yet no official date for the abolition of articles 6\/8\/9.<\/strong><\/li>\n<li>The Commission will announce the exact timetable in its <strong>Q4 2025 proposal<\/strong>.<\/li>\n<li>Current indications suggest that <strong>articles 6\/8\/9 will remain applicable until at least 2027<\/strong>, with a gradual switchover thereafter.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Our other articles on similar subjects: <a href=\"https:\/\/blufin.one\/en\/sfdr-three-years-after-its-introduction\/\">SFDR &#8211; three years after its entry into force<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><em><span style=\"text-decoration: underline;\">Sources <\/span><\/em>:<\/p>\n<p><strong>European Commission<\/strong> &#8211;<em> Sustainable finance, Newsletter; <\/em> <a href=\"https:\/\/finance.ec.europa.eu\/news\/sustainable-finance-2025-05-21_en\" target=\"_blank\" rel=\"noopener\">https:\/\/finance.ec.europa.eu\/news\/sustainable-finance-2025-05-21_en<\/a><\/p>\n<p><strong>European Commission &#8211;<\/strong> <em>Public consultation &amp; Call for Evidence on the revision of the SFDR<\/em>; <a href=\"https:\/\/ec.europa.eu\/info\/law\/better-regulation\/have-your-say\/initiatives\/14086-Standard-forms-for-the-publication-of-notices-in-the-field-of-public-procurement-eForms-3rd-Amendment_en\" target=\"_blank\" rel=\"noopener\">https:\/\/ec.europa.eu\/info\/law\/better-regulation\/have-your-say\/initiatives\/14086-Standard-forms-for-the-publication-of-notices-in-the-field-of-public-procurement-eForms-3rd-Amendment_en<\/a><\/p>\n<p><strong>Joint ESAs (EBA, ESMA, EIOPA)<\/strong> &#8211; <em>Opinion on the review of the SFDR framework<\/em> (June 18, 2024); <a href=\"https:\/\/www.esma.europa.eu\/press-news\/esma-news\/esas-propose-improvements-sustainable-finance-disclosure-regulation\" target=\"_blank\" rel=\"noopener\">https:\/\/www.esma.europa.eu\/press-news\/esma-news\/esas-propose-improvements-sustainable-finance-disclosure-regulation<\/a><\/p>\n<p><strong>European Sustainable Finance Platform<\/strong> &#8211; <em>Report on product categories and classification<\/em> (December 17, 2024); <a href=\"https:\/\/finance.ec.europa.eu\/document\/download\/8a3d0e56-4453-459b-b826-101b1067290f_en?filename=241217-sustainable-finance-platform-proposal-categorisation-products_en.pdf\" target=\"_blank\" rel=\"noopener\">https:\/\/finance.ec.europa.eu\/document\/download\/8a3d0e56-4453-459b-b826-101b1067290f_en?filename=241217-sustainable-finance-platform-proposal-categorisation-products_en.pdf<\/a><\/p>\n<p><strong>European Commission<\/strong> &#8211; <em>Work Program 2025;<\/em> <a href=\"https:\/\/commission.europa.eu\/strategy-and-policy\/strategy-documents\/commission-work-programme\/commission-work-programme-2025_en?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">https:\/\/commission.europa.eu\/strategy-and-policy\/strategy-documents\/commission-work-programme\/commission-work-programme-2025_en?utm_source=chatgpt.com<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Photo by <a href=\"https:\/\/unsplash.com\/@mikehindle?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" target=\"_blank\" rel=\"noopener\">Mike Hindle<\/a> on <a href=\"https:\/\/unsplash.com\/photos\/three-cable-cars-traverse-the-sky-ASmcO_-xBDE?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" target=\"_blank\" rel=\"noopener\">Unsplash<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Launched in 2019, the Sustainable Finance Disclosure Regulation (SFDR ) was intended to provide investors with a clear framework for comparing financial products on the basis of sustainability criteria. In practice, the distinction between the famous articles 6, 8 and 9 has served as a market classification, but without being designed as such, leading to<\/p>\n","protected":false},"author":2,"featured_media":10885,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[100,101,1],"tags":[],"class_list":["post-11132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-regulatory-frameworks","category-sustainable-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/posts\/11132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/comments?post=11132"}],"version-history":[{"count":0,"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/posts\/11132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/media\/10885"}],"wp:attachment":[{"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/media?parent=11132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/categories?post=11132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blufin.one\/en\/wp-json\/wp\/v2\/tags?post=11132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}