ESG round-up: Triodos warns of ‘green bleaching’ due to SFDR requirements

Some sustainable funds are opting for Article 6 status under the EU’s anti-greenwashing Sustainable Finance Disclosures Regulation (SFDR) to avoid additional reporting requirements, according to Triodos Investment Management’s impact manager Nikkie Pelzer. In an interview posted on the firm’s website, she is quoted as stating: “Their [non-sustainable designated Article 6 funds] reporting effort is considerably less. This explains why you now even see sustainable funds opting for article 6, leading to green bleaching. That’s the world upside down.” Under SFDR, funds that claim sustainability credentials (Articles 8 and 9) are required to make additional disclosures.