Europe Unveils Major Overhaul of ESG Rules for Asset Managers

The European Commission unveiled a significant rewrite of its ESG rulebook for the investment industry, marking the latest step in a fundamental overhaul designed to help improve competitiveness in the bloc.

In the proposal put forward on Thursday, the Sustainable Finance Disclosure Regulation (SFDR) will no longer require asset managers to report the negative environmental or social impacts of their entire portfolio. Instead, so-called exclusion thresholds will be introduced as part of a revised range of ESG fund categories, including one dedicated to environmental and social transitions.

“The current framework results in disclosures that are too long and ...