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Sustainable Finance

Sustainable Finance Regulation

With the growing shift towards sustainable investing, new regulation means navigating the sustainable landscape can be challenging.

Overview

Multiple pressures, including investor, societal and environmental, have resulted in increased numerous sustainable finance regulation affecting corporates to fund managers.

Greater regulation allows market participants to navigate the investment landscapes more safely, encourages standardization across the market and ensure relevant disclosure is available. In turn this enables investors to make an active choice to invest sustainably and play their part in supporting the development of a more sustainable economy.

To reach the Paris Agreement and reduce the impacts of climate change, a range of regulatory efforts have been put in place to positively impact the market that we serve.

How we help

Helping you navigate sustainable regulation

SFDR

The Sustainable Finance Disclosure Regulation (SFDR) introduces disclosure standards for financial market participants, advisors and products.

The aim of the regulation is to minimize greenwashing and to provide a transparent view into sustainability investments for the end investor. To meet the SFDR, asset managers need accurate and trusted data. This is where Refinitiv can help.

Refinitiv has a solid coverage across SFDR related metrics which fuel our solutions both via desktop and feed, including full coverage of SFDR level 1 data for funds registered for sale in Europe which is being expanded to incorporate all new SFDR level 2 data.

Find out more about Refinitiv SFDR solutionsdisclosure measures we cover and Refinitiv Lipper’s coverage of European ESG related fund disclosure required by SFDR.

SDFR template in Porfolio Analytics app

SFDR details displayed in Refinitiv Lipper for Investment Management.

EU Taxonomy

Refinitiv EU Taxonomy template

The EU taxonomy is a classification tool to help investors and companies consistently determine whether an economic activity is environmentally sustainable or not. It provides specific, quantitative thresholds on environmental performance for economic activities to be considered compliant with the EU taxonomy allowing market participants to navigate the transition to a low-carbon economy.

The EU taxonomy for sustainable activities is based around six environmental objectives:

1.    Climate change mitigation
2.   Climate change adaption
3.   Sustainable use and protection of water and marine resources
4.   Transition to a circular economy, waste prevention and recycling
5.   Pollution prevention and control
6.   Protection of healthy ecosystems

Refinitiv is creating EU taxonomy-aligned products, to help users fulfil their compliance obligation and start evaluating their portfolio against the taxonomy. Underpinning our EU Taxonomy solution is a combination of Refinitiv Fundamentals, reference, ESG carbon and ESG data.

Discover more about Refinitiv’s EU Taxonomy solutions and Refinitiv Lipper’s coverage of European ESG related fund disclosures required by the EU Taxonomy.

TCFD

The Task Force on Climate-Related Financial Disclosures (TCFD) provides recommendations for more effective climate-related disclosures that promote more informed investment, credit and insurance underwriting decisions.

The TCFD enables stakeholders to understand carbon-related assets and exposure to carbon-related risks.

TCFD disclosure recommendations are structured around four core elements that investors expressed interest in and represent how organizations operate:

  • Governance
  • Strategy
  • Risk Management
  • Metrics and targets

At Refinitiv, we have mapped our climate-related data to ensure our methodologies and data measures are aligned to the TCFD recommendations.

Discover more about Refinitiv’s ESG Reporting Solutions, a user friendly data collection and automated emissions calculation system for corporates.

MiFID and IDD (Insurance Distribution Directive)

Fund overview in Refinitiv Workspace, displaying key attributes featured in the European ESG Template

Both MiFID and IDD have added the requirement that recommendations to customers and potential customers should reflect both the financial objectives and any sustainability preferences expressed by those customers.

The aim is to ensure investors can invest and save sustainably and to facilitate their participation in the transition to a low carbon, more sustainable, resource efficient economy.

For funds, Refinitiv is expanding its coverage of SFDR level 1 data to incorporate all the new ESG and sustainability disclosures required to comply with MiFID and IDD. This will enable customers to screen for suitable fund products, and to confirm the sustainability of each fund.

Discover more about Refinitiv Lipper’s coverage of European ESG related fund disclosure required by MiFID and IDD regulations. 

View of a bridge and reflected woodland in water

Sustainable Finance

Sustainable finance services and solutions

We use our data, forward-thinking technology, and expertise to help you make sustainable investment decisions, mitigate risk and generate performance.