The Council of the EU has recommended updates to the Sustainable Finance Disclosure Regulation (SFDR) to combat greenwashing and make it easier for investors to compare products. It promised that the revisions would reduce administration for companies “drastically” and encourage investments that meet the EU’s sustainability and competitiveness aims.

If the proposals are adopted, compliance teams in financial services firms will need to understand three new sustainable asset categories:

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Ruth Prickett graduated from Cambridge University with a BA hons in History and has specialized in business and finance journalism for the past 20 years. She was editor of Financial Management, the magazine...