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Article 6: Products without a sustainability scope. However, disclosures about the integration of sustainability risks are required– regardless if the product is promoted as ESG or not.
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Article 8: Financial products which promote, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
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Article 9: Products which have sustainable investment as their objective and/or an index has been designated as a reference benchmark. These products fully integrate ESG considerations and have sustainable investments as their core objective, positively impacting society or the environment.
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EU Taxonomy is a classification system for environmentally sustainable economic activities integrated into the SFDR, particularly for Article 8 and 9 financial products. Financial market participants using the EU Taxonomy must disclose their alignment in terms of turnover, capex, and opex, and specify transitional and enabling activities.
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