Akin Gump Teams with BII to Produce SFDR Guidance Report
Contact:
British International Investment, the U.K. government’s development finance institution, and Akin Gump have together produced “New guidance for fund managers on the European Commission’s Sustainable Finance Disclosure Regulation (SFDR).”
This report is “designed to help fund managers understand the implications of the EU SFDR. This regulation will have material implications for the private equity (PE) and venture capital (VC) industries, including for some fund managers in emerging markets.”
As noted in the report, SFDR applies to fund managers marketing funds in the EU and may apply to fund managers domiciled outside the EU. It is designed to prevent greenwashing—unsubstantiated claims by funds to environmental benefits.
It further notes, “Given the wide-ranging and extraterritorial application of SFDR, it is likely to drive long-term environmental, social and governance (ESG) norms in the global PE and VC industries.”
The report looks in detail at EU legislation; SFDR’s applicability; manager- and product-level disclosures; and Article 6, 8, and 9 funds.
To read the full report, click here.