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Neill_58630 May 14

European Union Sustainable Finance Disclosure Regulation: Implications on Africa

European Union Sustainable Finance Disclosure Regulation: Implications on Africa image
European Union Sustainable Finance Disclosure Regulation: Implications on Africa
On March 10, the European Union Sustainable Finance Disclosure Regulation (SFDR) came into effect. The SFDR requires that asset managers show “tangible and measurable plans” on ESG, with the aim of preventing greenwashing.
The proposals for SFDR resulted from the European Commission’s realization that there was a lack of transparency on the degree of sustainability of financial products. There was equally a lack of transparency on how sustainability risks were considered in offering financial advisory. The effect of this was that investors did not obtain full information upon which to base their investment decisions.
Other SFDR rules will be phased-in in the months ahead. These include the Regulatory Technical Standards supplementing the SFDR. The objective of the SFDR is to encourage the channelling of private investment towards sustainable investing.

Consequently, the SFDR will support the United Nations Framework Convention on Climate Change, the United Nation’s Sustainable Development Goals (the SDGs) while preventing “greenwashing”.

This article delves into the application of the SFDR. In particular, it highlights how the SFDR is likely to impact Africa. It outlines reporting criteria and implementation measures that Africa should take to enforce the SFDR’s provisions.

The rules primarily apply to business and financial market participants in the EU. First is a direct application to the EU entities. Secondly is an indirect application for non-EU entities.

The indirect application comes in the form of EU subsidiaries, provisions of services in the EU and the market pressures likely to arise from the seemingly unstoppable global shift towards sustainable investing.

The application of SFDR will not only influence capital raising activities across Africa but also provide a competitive advantage to firms that will align their business with SFDR.

For the full article, European Union Sustainable Finance Disclosure Regulation: Implications on Africa - Mashora Group

For inquiries contact:
Mashora Group
Contact Person: Alia Eshaq
Via: a.eshaq@mashoragroup.com

Mashora Group
85 Great Portland Street
London, W1W 7LT
United Kingdom
+44203 475 8110 • info@mashoragroup.com
https://mashoragroup.com/
 
 
About Mashora Group
Mashora is a platform and a marketplace for sustainability experts. We help companies improve their sustainability performance and standing through giving them access to some of the best sustainability experts.
We work closely with a pool of carefully pre-selected experts who are some of the best in the field. These experts support with sustainability projects and adhoc advisory.