SFDR overhaul could be coming

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Here’s the teaser from this Simpson Thacher memo:

Earlier today, the European Commission published two linked consultations on the current performance and future shape of the EU’s Sustainable Finance Disclosure Regulation (SFDR). The “targeted consultation” is most relevant to asset managers and other users of the SFDR. The “public consultation” seeks more general feedback from a wider range of interested parties. With the announcement, the Commission appears to be contemplating a substantial, or even a complete, overhaul of the current SFDR framework that is likely to take effect through the introduction of new legislation within the near to medium-term. Early indications point toward a revised regime that looks much more like the U.K.’s proposed Sustainability Disclosure Requirements (SDR).