FaFin signs open letter on SFDR review

Exclude new projects in the field of fossil fuels

engagement and network

2. October 2025

To build trust with retail investors and mobilize the massive sums needed to finance the climate transition, we need financial markets that prevent greenwashing and incentivize investment in sustainable activities and companies. The review of the SFDR is a great opportunity to achieve this.

Direct link to the open letter.

But to succeed, it must provide strong safeguards — starting with the exclusion of fossil fuel developers from all funds making environmental or sustainability claims. The activities of these companies are incompatible with climate goals, and the development of new fossil fuel production locks us into a high-carbon economy.

This is why the Sustainable Finance Institute has joined more than 120 other experts and organisations in calling on the European Commission to ensure that all future SFDR categories exclude companies developing new fossil fuel projects.

Direct link to the open letter.

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