Brussels – On Thursday, the Commission unveiled its proposals to revise the European directive on sustainable finance (SFDR), established in 2021 to encourage investors to choose more sustainable options through a fund classification system.
At the end of September, NGOs and experts, including the Reclaim Finance association, the collective Our Affair to All, and climatologist Jean Jouzel, urged Brussels to thoroughly reassess this classification, which they deemed too ambiguous and overly permissive, particularly calling for the exclusion of companies involved in fossil fuel development.
The Commission’s proposal appears to address these concerns by recognizing that the current classification may mislead investors. It introduces a new classification system consisting of three stricter categories that also take into account additional social and environmental impact criteria.
This initiative aims to more effectively combat “greenwashing,” where companies use vague ecological language in their communications. (November 20, 2025)













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