Making SFDR Work For Global Competitivness

By e-MFP and Cerise+SPTF, June 2025.

This joint position paper by e-MFP and Cerise+SPTF contributes to the ongoing SFDR 2.0 reform process, representing social and impact finance actors investing globally in financial inclusion and sustainable development.

As networks working with hundreds of investors, asset managers, and financial institutions active in emerging and developing markets, we see SFDR 2.0 as a strategic opportunity to do more than just fine-tune technical rules. It’s a chance to reaffirm the EU’s global leadership in sustainable and impact finance, especially at a time when progress in other parts of the world is slowing due to political challenges.

But this can only happen if the revised SFDR works for all sustainable investors and investees, not just those within the EU. Today, the framework often places disproportionate burdens on those operating in emerging markets, limiting capital flows to where it’s needed most.