Brussels, 30 September 2025. As the revision of the Sustainable Finance Disclosure Regulation (SFDR) comes to an end, 121 organisations and experts – including FIDH – emphasise the importance of guaranteeing that the legislation effectively prevents financial market participants from engaging in greenwashing.
Adopted in 2019, the regulation aims to provide higher transparency in investments. It requires financial market participants to disclose how they integrate sustainability risks and impacts into their investment decision-making process.
The SFDR also mandates European financial institutions and advisors to disclose the methodologies and evaluations used when advertising financial products as sustainable.
After a review initiated two years ago, a revised text will be proposed by the European Commission at the end of 2025.
A number of so-called "sustainable" investors continue to fund companies developing fossil fuel projects. They do so despite clear scientific evidence that continued fossil fuel reliance is incompatible with the goal to limit global warming to 1.5 degrees and therefore protect human rights from climate breakdown.
Companies developing new fossil fuel projects should not be present in funds that include sustainable messaging for customers and retail investors. Instead, they should be excluded from all SFDR categories in order to restore trust in sustainable funds and align with citizens’ expectations and science-based climate targets.
Read the open letter here.