15 December 2020

Pension funds must prepare now and be ready to apply SFDR in early 2021

From 10 March 2021, the pension sector in the Netherlands will have to comply with the majority of the requirements under the Sustainable Finance Disclosure Regulation (SFDR). These mainly involve having to provide information about sustainability, at both the entity and the product level. The nature of the requirements also requires pension funds to have specific policy and processes in place.

The SFDR's requirements will have to be worked out in greater detail in terms of regulatory technical standards that have not been fully finalised and adopted. Moreover, the SFDR is not easy reading material. The European Commission nonetheless expects pension funds to meet the SFDR's "high level and principle based requirements" as of 10 March 2021.

It is important that pension funds determine the impact of SFDR at an early stage and begin their preparations in a timely manner.

We discuss key aspects in this article (available in Dutch only).