What is the SFDR, the EU Sustainable Finance Disclosure Regulation?
In short, the SFDR is a new ESG-related transparency requirement for financial market participants like investors, asset managers, and other large players engaged in or exposed to the European market. For those affected, SFDR reporting is mandatory starting in 2023, and global investors will be looking for increased data transparency across their portfolios.
Why should I participate?
With SFDR reporting just around the corner, investors are increasingly asking their portfolio companies to start disclosing during this year’s trial period to identify data gaps and to ensure that they have the tools to comply with upcoming regulations.
For many asset managers, the main challenge of SFDR will be reporting on product- and entity-level ESG characteristics using the previous year’s data.
Many investors also expect SFDR-related insights on all their investments – not necessarily so they become best in class but simply because they need ESG data and tools to monitor overall performance, protect against risk, and stay ahead of emerging regulations.
What is the SFDR Reporting Solution?
The GRESB SFDR Reporting Solution for real estate and infrastructure is designed to help managers who are affected by SFDR to tackle the central data challenge of the new regulation – reporting on product-level Principal Adverse Impacts, otherwise known as PAIs.
Completing the GRESB SFDR Assessments will provide managers with a detailed report that can help you:
- Prepare your PAI disclosure at the entity level for 2023
- Inform and guide your periodic and pre-contractual disclosures at the product level
- Identify any data or coverage gaps you may have to stay ahead of the regulation as it evolves
Finally, providing your SFDR report to investors shows your commitment to transparency and how you are addressing SFDR while also helping them comply with the regulation.
How does it work?
Getting started is easy. As an industry-led platform, GRESB provides robust support at every step of the process. Follow our step-by-step instructions, read our FAQ page, and review our SFDR resources to identify and submit the required information to complete the assessment.
If you need help collecting data, we can recommend one of our partners who can help you collect, report, and manage your ESG data as well as complete the GRESB Assessments and improve your overall sustainability performance.
Ready to get started?
If you have any questions about how investors use GRESB data or how the GRESB SFDR Reporting Solution works – or if you would like to see a video demonstration of how to complete the assessment, please reach out to us.