Bloomberg has launched a dashboard that tracks and picks investments aligned with key ESG indicators mandated under the EU’s sustainable finance rules, known as SFDR.
SFDR reporting is designed to evidence how firms are achieving Article 8 and 9 fund classifications.
Over 15,000 companies from around the world come under the scope of this dashboard and Bloomberg is now integrating SFDR insights into its portfolio and risk analytics solution, PORT, through its terminal.
Since its introduction, SFDR has become a significant compliance issue for many asset managers and has triggered a response within the industry with index providers – such as FTSE Russell – overhauling ESG methodology to support compliance.
SFDR has also become subject to criticism, with the regulation’s fund classifications a source of confusion for some.
In February, the European Fund and Asset Management Association (Efama) recommended the European Securities and Markets Authority delay guidance around how funds are named under SFDR.
This was due to Efama members raising concerns around a “current lack of clarity on many key sustainable finance concepts”.
Efama was not alone in its concerns, with the UK Sustainable Investment and Finance Association – which represents investors with $19 trillion of assets – claiming the UK’s own greenwashing rules set a “higher bar” than SFDR.
Recently, the Autorité des Marchés Financiers, France’s financial regulator, concluded there was little “significant” difference between Article 8 and Article 6 definitions, further calling the SFDR into question.
© 2023 funds europe
