Sustainable Finance Disclosure Regulation (SFDR) Gap Analysis

The Sustainable Finance Disclosure Regulation (SFDR), the EU Taxonomy (EU-T) and the Non-Financial Reporting Directive (NFRD) are key elements of the Sustainable finance supporting the European Green Deal. Investors, managers and asset operators in Europe will have  to report in accordance with SFDR/NFRD and use the EU Taxonomy for the labelling of green investment schemes. These regulatory requirements apply to Financial Market Participants (FMPs) in the EU and to financial products sold in the EU. This includes private market and listed real estate funds and infrastructure companies and funds which are the GRESB Participant Members.

Financial market participants will be required to disclose against SFDR and EU-T by 1 January 2022. GRESB will play an active role in gathering and making the SFDR aligned data available to both GRESB Participants and Investors.

Alignment mapping has shown that the existing GRESB Assessments already cover 60-70% of SFDR  requirements. This means that GRESB is well placed to bridge the identified gaps and provide a simple way for GRESB Participant and Investor Members to meet their regulatory reporting requirements with minimum reporting burden.