Sustainable Finance Disclosure Regulation review

Background

In November 2025, the European Commission put forward a set of amendments to the Sustainable Finance Disclosure Regulation (SFDR), the EU’s transparency framework for financial products which integrate environmental or social aims.

The objective is to tackle current shortcomings and make the rules simpler, more efficient and better aligned with market realities.

The current framework has often proved to be too long and complex. This discourages investors, as it is difficult for them to understand and compare the environmental or social characteristics of financial products. It is therefore vital to have rules which are more retail-friendly and usable for companies.

Key points

The EESC recommends to:

• ensure that any simplification of sustainable finance legislation, including disclosure requirements, does not weaken the contribution of the financial system and its credit and investment products to achieving the objectives of the European Green Deal within the legally bound timelines, and does not weaken measures against greenwashing; 
• strengthen transition plan requirements under the transition category’s eligibility criteria. Sustainable financing criteria should require companies to adopt a credible plan for phasing out fossil fuels and particularly coal, aligned with the Paris agreement;
• guarantee alignment with the broader sustainable finance framework, ensuring that product categories do not contradict EU climate and energy policy objectives. 

Additional information

Section: Economic and Monetary Union and Economic and Social Cohesion (ECO)

Opinion number: ECO/693

Opinion type: Mandatory

Referral: COM(2025) 841 final 2025/0361 COD

Rapporteur: Javier Doz Orrit (Group II - Spain)

Date of adoption by section: 25 February 2026

Result of the vote: 61 in favour, 0 against, 0 abstentions

Date of adoption in plenary: 18-19 March 2026

Result of the vote: 193 in favour, 0 against, 0 abstentions

Contact

Marco Pezzani

Press Officer

Tel.: +32 2 546 9793 | Mob: +32 470 881 903

E-mail: marco.pezzani@eesc.europa.eu 

Gerald Klec

Administrator

Tel.: +32 2 546 9909

E-mail: gerald.klec@eesc.europa.eu