Sustainable finance

Sustainable Finance Disclosures Regulation (SFDR)

Since the Sustainable Finance Disclosures Regulation (SFDR) came into force in March 2021, it is mandatory for insurance intermediaries providing advice on IBIPs and investment firms providing investment advice to comply with some specific sustainability-related disclosure obligations and to integrate sustainability factors and risks into their decision-making process. In parallel, since August 2022, the IDD and MiFID II delegated acts require insurance intermediaries distributing IBIPs and investment firms providing investment advice and portfolio management to integrate sustainability preferences into their advisory process.

For the first time, in 2025, and based on the 2024 financial year, insurance intermediaries falling under the scope of the Corporate Sustainability Reporting Directive (CSRD) (also known as first wave reporting) have to provide their sustainability reporting on a public basis. For other intermediaries, not falling under the scope of the CSRD, the Voluntary standard for non-listed micro-, small- and medium-sized undertakings (VSME) will become, in the future, the voluntary standard that could be used when providing sustainability reporting information to insurers and other business partners asking for it.

Over the last year, the European Commission has been working on a standard, aimed at allowing SMEs to use the Taxonomy framework and is also looking to add new economic activities to the existing Taxonomy list.

The new Omnibus I proposal, published by the Commission in March 2025, aims at simplifying sustainability reporting under the CSRD, Taxonomy and Corporate Sustainability Due Diligence Directive (CS3D) for all financial market participants and especially target SMEs by limiting the trickle-down effect those regulations could have on SMEs and on intermediaries.

Lastly, the ongoing work of the European and national supervisors on greenwashing and green claims is having an impact on the supervision of intermediaries' daily business activities.

(Last updated in June 2025)