The French Financial Markets Authority (AMF) has published 14 recommendations to inform the European Union’s review of the Sustainable Finance Disclosure Regulation (SFDR), advancing its 2026 priority of making the framework clearer and more effective. The report focuses on the credibility of transition plans for products in the “Transition” category and the treatment of principal adverse impacts from investment decisions for products in the “Sustainable” and “Transition” categories. For transition plans, the AMF calls for clear pathways, measurable targets, commitments that can be monitored over time, and criteria and indicators for assessing credibility. Recommendations include using a recognized framework to verify alignment with the Paris Agreement, setting clear greenhouse gas emissions reduction targets, and disclosing the actions and financial resources supporting those targets. The report also seeks better integration of principal adverse impacts and clearer investor disclosures, while future work will address the “ESG Basics” category, ESG selectivity and exclusion policies.
French Financial Markets Authority issues 14 recommendations on transition plans and sustainability impacts in the SFDR review
The French Financial Markets Authority has issued 14 recommendations for the EU review of the Sustainable Finance Disclosure Regulation. They seek credible, measurable transition plans and clearer treatment of principal adverse impacts for “Sustainable” and “Transition” products, including Paris Agreement alignment, emissions targets and disclosure of implementation resources.