SFDR: AMF proposal to introduce minimum environmental standards


The AMF proposes that the European Commission introduce in European law minimum environmental standards that financial products should meet to be categorised “Article 9” or “Article 8” under SFDR*.

The AMF makes the following recommendations:

  • Minimum environmental criteria should be established for the classification of products as Article 9 or Article 8. Compliance with these criteria would be subject to national supervision. The criteria for Article 9 should continue to be more stringent than those for Article 8.

  • A minimum proportion of portfolio assets for Article 9 funds should consist of investments aligned with the Taxonomy.

  • Financial market participants that manage Article 8 and 9 funds should adopt a binding ESG approach in their investment decision-making process. The EU framework for minimum criteria should identify a set of acceptable ESG approaches that can be implemented by financial players.

  • Article 9 funds should exclude investments in fossil fuel activities that are not aligned with the European Taxonomy. Investment in such activities would be possible for Article 8 products if they meet strict conditions that ensure that these activities are engaged in an orderly transition. 

This proposal aims to initiate discussions on minimum standards in the perspective of the review of SFDR.

Read the AMF publication.

* SFDR: Sustainable Finance Disclosure Regulation, regulation (UE) 2019/2088 on sustainability-related disclosures in the financial services sector

Marie-Claire de Saint-Exupéry