The Sustainable Finance Disclosure Regulation (SFDR) entered into force on March 10, 2021. This European legislation resulted from the Paris Climate Agreement (2016). By encouraging companies in the financial sector to disclose the various sustainability aspects of its investment policy, the EU expects that the financial sector will contribute to achieve the goals of the climate agreement and also help support other sustainable goals.
Financial institutions, including investment firms such as B.A. van Doorn, had to indicate before 10 March whether they include sustainability considerations in their investment process. The next step in this process, probably from 1 January 2022, is that the stated sustainability considerations are also substantiated with data.
There is still a lot unclear about the quantity and quality of these data requirements and the efforts and costs to meet these. From that perspective, B.A. van Doorn decided, for the time being, not to qualify the portfolios it offers to clients as “sustainable” within the framework of the SFDR. When more clarity arises about the data to be supplied and the feasibility of this, B.A. van Doorn will reconsider this decision.