The sustainable investor for a changing world

Sustainable finance regulation

An age of sustainability is supplanting the 200-year-long era of carbon. The financial services industry, partly by choice and partly by regulatory edict, is helping to facilitate the transition.

The EU, for example, wants palpable action on climate change. It is determined to secure net-zero carbon emissions by 2050, as well as outlaw greenwashing. In pursuit of these policy objectives, it has established the Sustainable Finance Disclosure Regulation (SFDR).

According to the EU, SFDR ‘lays down sustainability disclosure obligations for manufacturers of financial products and financial advisers toward end-investors.’ The EU officially adopted SFDR in 2019, with Level 1 disclosures becoming mandatory in March 2021.

Beyond SFDR, there is also Markets in Financial Instruments Directive (MiFID) II and its three pillars: EU Taxonomy, Sustainable Investments & Principal Adverse Sustainable Impact (PASI) and Corporate Sustainability Reporting Directive (CSRD).

The resources and videos below answer the key questions about the main sustainable finance regulations impacting our industry and describe BNP Paribas Asset Management’s approach to them.


      ESG = Environmental, Social and Governance


      Past performance is not indicative of current or future performance.

      Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.

      Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.

      Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).


      Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management.