SFDR
The EU Sustainable Finance Disclosure Regulation, which requires financial market participants to disclose how they handle sustainability risks and impacts. Funds are commonly described as Article 6, Article 8 (promoting environmental or social characteristics) or Article 9 (having sustainable investment as their objective).
In November 2025 the European Commission proposed a revision, often called SFDR 2.0, with three product categories: Sustainable, Transition and ESG Basics. The proposal was still being negotiated in 2026.
EcoAppraise context
Article 8 and Article 9 were designed as disclosure categories, not quality labels. Marketing them as labels is a recognised greenwashing risk.
Related terms
ESMA Fund Names Guidelines; EU Taxonomy; Sustainability Disclosure Requirements (SDR); Principal Adverse Impacts (PAI)