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SFDR – Sustainable Finance Disclosure Regulation

The EU Action Plan on Sustainable Finance aims to redirect capital towards sustainable investment to drive the transition to a low carbon, resource-efficient and just economy and society. The action plan includes the introduction of several overlapping regulatory and policy initiatives developed in recent years that impact non-listed real estate.

The overriding aim is to increase transparency and introduce common standards, thereby impeding greenwashing. The ambition is to provide investors and advisors with the substantive information required to make effective allocations that support the growth of a more sustainable economy, society and environment. The Sustainable Finance Disclosure Regulation (SFDR) is one of the most significant of these initiatives. 

This page brings all our SFDR resources, guidance and insights together in one place.

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INREV files response to Commission’s SFDR consultation

INREV submitted its response to the European Commission’s call for evidence on the Sustainable Finance Disclosure Regulation (SFDR), highlighting key challenges for the non-listed real estate sector and advocating for a more practical, sector-sensitive regulatory framework.

We were closely involved in developing an aligned industry model response among a large group of real estate associations and other stakeholders and our response follows the model response.

INREV reiterated support for the goals of SFDR in enhancing transparency, comparability, and integrity in sustainability disclosures, but highlights that implementation has been complex and costly, particularly for the real estate sector.

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Falling through the cracks: SFDR’s impact on real estate investment

A research paper exploring the implications of SFDR for the non-listed real estate investment industry sheds light on the challenges of complying with SFDR and how it may distort investment needed for real carbon reduction.

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ESG Committee

The aim of the committee is to establish a unified view of ESG, increasing understanding of all three aspects, environmental, social and governance, and to promote robust standards of corporate governance that integrate all these aspects for non-listed real estate vehicles. This will help the industry more effectively integrate ESG factors into the real estate investment decision-making process.

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INREV Guidelines

The sustainability module and the sustainability reporting guidelines under the reporting module identify common areas which overlap with regulatory requirements and provide references to the SFDR but does not go as far as providing a comprehensive disclosure framework to comply with the relevant regulations. The INREV DDQ includes questions related to ESG regulations but does not go as far as providing a comprehensive disclosure framework to comply with the relevant regulations.

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