SFDR challenges and how to overcome them

SFDR increases the attraction of ESG focused investment products through creating more transparency and a common language. However, this presents challenges for real estate investors; It significantly raises the bar for financial market participants around disclosure requirements. Added to this, the ruleset is yet to be finalised and is not a good fit for real estate, despite the regulations being in force.

Our team of specialists continue to review the legislation as it evolves and work closely with our clients to navigate their way through the myriad compliance and disclosure requirements.

SFDR Tips podcast

In this new podcast, Mariya, Senior Consultant, discusses the challenges of SFDR and the actions that real estate investors can take now to put themselves in a strong position once the SFDR disclosure requirements come into effect in early 2023.

Mariya's three top tips:

1. Start early, with small steps.

The regulations are constantly evolving and requirements are yet to be finalised. Early action, especially around data, is advised. Start screening your funds against compliance rules and data requirements to identify potential challenges and opportunities.

2. Establish a centralised data hub.

Meeting the disclosure requirements has significant data implications across a wide range of indicators. In order to maximise alignment between the various voluntary and mandatory reporting frameworks, real estate companies need to find a suitable data partner and collection platform to support them on this journey.

3. Assess climate-related physical risk and have an adaptation plan.

Climate risk assessment is a pivotal part of the regulations. The timely identification of risks and adaptation measures will enhance sustainability credentials and feed into other disclosures.

Listen to the podcast

SFDR further information

For further details about how we can help streamline and simplify your reporting requirements, download the SFDR service document here:

Further information

If you would like to talk about SFDR and how this relates to your business, please get in touch at achievezero@vercoglobal.com or call us on +44 (0)1257 257000.