Nathalie Dogniez

Failure to understand the requirements of the Sustainable Finance Disclosure Regulation, known as SFDR, could expose asset managers to reporting and greenwashing risks, not least with the sustainability preferences aspects of MiFID II coming down the pike. “SFDR has been very often seen by some as a product classification and even as a product-labelling initiative, both of which are absolutely not the case,” Nathalie Dogniez, a partner with PwC Luxembourg told Investment Officer.

The lack of available data on company-level will be the main challenge for asset managers to deal with after the regulation for sustainability‐related disclosures in the financial services sector, better known as SFDR, comes into force in March next year, according to Alfi’s Nathalie Dogniez (picture).

Investors need clear, comparable information to understand sustainable investing. A range of new EU standards and reporting rules aim to facilitate this, but implementation will be challenging with a tight deadline. This gives the Grand Duchy an opportunity to create a lucrative niche to help bring these regulations to life.

Luxembourg is set to bear a big responsibility for making the green financial revolution happen.  But are the rules of game clear enough, with reporting set to begin in just over a year’s time? And what role can Luxembourg’s fund service providers play?