The successful implementation of the newly-enforced Sustainable Finance Disclosure Regulation (SFDR) in the EU comes with many challenges – one being lack of data.

Data required by the SFDR and the incomplete EU taxonomy on sustainable finance is not always made available, according to Anne Schoemaker, manager of data provider Sustainalytics’ EU action plan solutions.

“Data gaps are a reality,” she said, speaking to Funds Europe for the April issue. “Regulators know this, of course, but it is critical for the whole value chain to be taken into consideration.”

Reliable data is pivotal in building representative disclosures, according to Giorgio Botta, regulatory policy advisor at the European Fund and Asset Management Association (Efama).

“You cannot fight greenwashing with estimates or gestures – you need data,” he said.

Learn more about SFDR and its role in the fight against greenwashing here: ESG: Green, greener, greenest...

© 2021 funds europe