EU Sustainable Finance Disclosure Regulation revision

The European Union is progressing through the revision of the Sustainable Finance Disclosure Regulation (SFDR). In September 2026, the European Parliament’s Committee on Economic and Monetary Affairs approved a negotiating mandate to initiate trilogue negotiations. The proposed framework introduces three new product categories: Sustainable, Transition, and ESG Basics. Key aspects of the proposal include a 20% Taxonomy-alignment threshold for the Sustainable category and specific safeguards to prevent companies involved in new fossil-fuel exploration from qualifying under the Transition category.

By October 2026, the focus shifted toward operational implementation and final negotiations. The French Financial Markets Authority (AMF) released findings addressing the credibility of transition plans, emphasizing the necessity for “clear trajectories, measurable objectives, and trackable commitments.” Concurrently, PensionsEurope entered the final negotiation phases, advocating for a regulatory framework that remains “proportionate and applicable to professional pension funds” within the EU.