Article 9 products embody a stronger commitment to sustainability, while Article 8 products also incorporate ESG considerations but alongside broader investment objectives. In principle, the higher the article number, the more disclosure is required in order for an investment to count as “sustainable” in the eyes of the EU.

Feb 19, 2025 · The SFDR classifies financial products into three categories—Article 6, Article 8, and Article 9—each with distinct disclosure obligations. This article provides an in-depth examination of SFDR Article 8, its regulatory requirements, and how it differs from Article 6 and Article 9 classifications. What is SFDR? Why does it Matter?

Apr 1, 2024 · We analyze 1,138 Article 9 funds using the G7 Impact Taskforce typology (ITF, 2021), distinguishing between Environment, Social, and Governance (ESG)-related investments and impact-related investments. Our findings indicate diverse investment strategies among Article 9 …

Recent clarification on SFDR has meant that the differences between Article 8 & Article 9 are now more clear. We summarise these new developments.

Mar 15, 2022 · The EU’s Sustainable Finance Disclosure Regulation (SFDR) aims to improve transparency about the ESG features of investment portfolios by having firms classify them as Article 8 or Article 9 products.

WHAT ARE “ARTICLE 9 FUNDS”? An Article 9 fund is a fund that has sustainable investment as its objective. Sustainable investments are defined in the Disclosure Regulation as any of the following: investments in economic activity that contributes to an environmental objective;

Article 6, 8 and 9 funds are the three classifications that are applied to all investment products sold within the EU under the EU’s Sustainable Finance Disclosure Regulation, in effect since 2022. They compel asset managers to reveal the differing levels of sustainability integration that an investment strategy contains.

Mar 30, 2023 · What is Article 9 sustainable investment objective? The sustainable investment objective of Article 9 funds requires that their investment decisions are based on ESG considerations. This means that Article 9 funds must prioritize sustainable investments that contribute to environmental and social objectives, and ensure that these investments ...

In essence, article 6 requires asset managers to disclose the integration of sustainability risks in their funds– regardless if the fund is promoted as ESG or not. Investments promoted as ESG, however, are required to classify as being either an article 8 or 9 fund, depending on which classification requirements their financial products meet.

Aug 19, 2024 · SFDR Article 9: Dark green funds. Article 9 outlines the disclosure requirements for funds with distinct sustainability objectives, where majority of the portfolio consists of ESG-focused investments. These funds are often called ‘dark green’.