Different investment strategies may entail investments in economic activities with different levels of environmental performance. For this reason, the SFDR distinguishes disclosure requirements for:
- Financial products that claim to have ‘sustainable investment’ as their objective (in environmental objectives) are often referred to as ‘dark green’ financial products).
- Financial products that claim to be promoting social or environmental characteristics (often referred to as ‘light green’ financial products).
The SFDR requirements are linked with those under the EU Taxonomy by including environmentally sustainable economic activities as defined by the Taxonomy Regulation in the definition of ‘sustainable investments in the SFDR.