As ESG pressures intensify, the EU's Sustainable Finance Disclosure Regulation (SFDR) sets a new standard for transparency in financial markets. Real estate funds and asset managers must now classify their products under Article 6, 8, or 9, each representing a different level of sustainability commitment:

Article 6 – “Light Blue”: Non-ESG funds must still disclose how they manage sustainability risks, promoting greater accountability across all investments.

Article 8 – “Light Green”: Funds that promote environmental or social characteristics, but don’t have sustainability as a core objective.

Article 9 – “Dark Green”: Reserved for products with sustainable investment as their primary goal, these funds meet the highest ESG standards.

Each classification requires specific disclosures, including taxonomy alignment for turnover, capex, and opex. Whether you're a fund manager, investor, or developer, understanding these articles is essential for navigating EU ESG regulations—and seizing the opportunities of sustainable finance.