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2025/0361(COD)E1st reading – European Parliament

Sustainability-related disclosures in the financial services sector (SFDR) and key information documents for packaged retail and insurance-based investment products (PRIIPs)

With the European Parliament, which is preparing its first-reading position.

Last active 11 Jun 2026

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What this bill does

In plain terms: what it changes and who it affects.

This proposal simplifies EU sustainable-finance disclosures and creates three categories for financial products making sustainability claims.

Who it affects

It affects investors in ESG or sustainability-linked financial products, and financial firms that manufacture, manage or market those products. It also affects providers of insurance-based, pension and PRIIP investment products.

Core of the proposal
  • Creates transition, ESG basics and sustainable categories for products making sustainability-related claims.
  • Requires at least 70% of investments to match the claimed category strategy.
  • Restricts sustainability claims in names and marketing to categorised products, with limited exceptions.
  • Removes entity-level principal adverse impact and remuneration-policy disclosure requirements.
Key provisions
Takes effect
The proposal states entry into force on the twentieth day after Official Journal publication; its main application date is not provided in the supplied text.
Transitional law
Insurance-based investment products, pension products, pension schemes and PEPPs apply the new rules 12 months after the Regulation’s application date.
Articles changed · 28 across 3 laws
  • Regulation (EU) 2019/2088 (32019R2088)
    • art. 1: replaces Article 1 on subject matter
    • art. 2: deletes and adds definitions, including sustainability-related products and environmental objectives
    • art. 2a: deletes Article 2a
    • art. 3: replaces Article 3 on sustainability risk policies
    • art. 4: deletes Article 4
    • art. 5: deletes Article 5
    • art. 6: amends title, deletes paragraph 2 and points in paragraph 3
    • art. 6a: inserts voluntary transparency rules for non-categorised products
    • art. 7: replaces Article 7 with transition category criteria and disclosures
    • art. 8: replaces Article 8 with ESG basics category criteria and disclosures
    • art. 9: replaces Article 9 with sustainable category criteria and disclosures
    • art. 9a: inserts rules for products combining categorised sustainability-related products
    • art. 10: replaces Article 10 on website transparency for sustainability-related products
    • art. 11: amends periodic reporting rules and deletes paragraphs 4 and 5
    • art. 12: replaces Article 12 on review of disclosures
    • art. 12a: inserts rules on data and estimates
    • art. 13: replaces Article 13 on marketing communications and naming rules
    • art. 14: amends competent authority monitoring and adds ban on additional national requirements
    • art. 15: replaces Article 15 on transparency by IORPs
    • art. 17: replaces Article 17 exemptions
    • art. 18: replaces Article 18 reporting by ESAs
    • art. 18a: amends ESAP submission requirements and legal entity identifier provisions
    • art. 19: replaces Article 19 review clause
    • art. 19a: inserts transitional provisions
    • art. 19b: inserts Commission delegated-act empowerments
    • art. 19c: inserts rules on exercise of delegation
  • Regulation (EU) No 1286/2014 (32014R1286)
    • art. 8: replaces point 3(c)(ii), inserts point 3(ca), deletes paragraph 4
  • Commission Delegated Regulation (EU) 2022/1288 (32022R1288)
    • entire act: repeals the entire delegated regulation

Latest update

15 Jun 2026

The most recent development in this bill's progress.

1st reading – European Parliament → 1st reading – European Parliament

1st reading – European Parliament1st reading – European Parliament

Documents

1 recent

SourcesOEILEUR-LexEU Law Tracker