Zeidler Group has released a streamlined practical guide to help firms interpret the European Commission’s proposal for SFDR 2.0, which represents the most substantial change to EU sustainable-finance rules since the original framework was introduced.
The new guide breaks down the Commission’s move toward a more structured, category-based system and highlights the steps firms should begin taking ahead of implementation.
Zeidler Group notes that SFDR 2.0 marks a decisive shift away from the flexible disclosure-driven model of the existing regime. The reforms introduce three new sustainability product categories, simplified templates, tighter naming and marketing requirements, and clearer expectations around data, governance and methodologies. The aim is to reduce inconsistent market practices and bring greater clarity to sustainability claims.
Although the legislative text is not yet finalised, Zeidler Group stresses that firms should prepare now. The Commission intends to close long-standing gaps in definitions and reduce reliance on Articles 8 and 9, which had become de facto labels despite widespread confusion. The proposed changes also repeal the Level 2 Delegated Regulation and narrow product-disclosure obligations, removing advisers and portfolio managers from scope.
The guide places these developments in the context of the Commission’s broader review, which identified multiple challenges: complex templates, data limitations, misalignment with CSRD and the EU Taxonomy, and limited investor understanding. These issues helped drive the push for a more proportionate, streamlined regulatory regime.
By outlining next steps and key considerations, Zeidler Group aims to give firms a clear starting point as they prepare for SFDR 2.0 and its far-reaching implications for investment processes, product governance and sustainability disclosures.
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