SFDR Review: ECON Committee Vote on Track for September/October 2026

The European Parliament's ECON committee is expected to hold its plenary vote on the SFDR (Sustainable Finance Disclosure Regulation) review in September or October 2026, with formal trilogue negotiations between Parliament, Council, and Commission expected to begin in Q4. The rapporteur's draft amendments aim to provide greater clarity for investors on ESG conditions within financial products, including revised categorization rules to replace the current Article 8/9 structure, which has been widely criticized as inadequate for distinguishing genuine sustainable investment products from greenwashed funds. The CSSF (Luxembourg financial regulator) published a July 1 communication clarifying that the ESG Ratings Regulation (EU 2024/3005) — which introduces disclosure and transparency requirements for ESG rating providers — is now applicable, adding a further layer of regulatory architecture affecting how firms and clients source and use ESG data. The SFDR review's first compliance window is expected to fall between June 2029 and June 2030, but the legislative trajectory through Q4 2026 will set the parameters for fund structuring decisions being made now.