Sustainable Finance Series – The Company's Perspective
Based on research provided by ECOFACT
As recently confirmed, the EU Sustainable Finance Disclosure Regulation (SFDR), becomes effective on 10 March 2021. The SFDR imposes sustainability-related disclosure requirements on financial services institutions such as banks, insurance companies, pension funds, and investment firms.[1] However, its implications go beyond the financial sector. This summary discusses how the SFDR will impact the real economy.
KEY TAKEAWAYS
The SFDR is expected to further shift market appetite towards sustainability-minded companies in their capacities as investees, borrowers, and issuers.
The application of the SFDR will influence businesses’ capital-raising activities. Companies that are prepared and aligned with the SFDR’s requirements will have a competitive advantage in the corporate finance market.