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Real estate fund managers: How should you prepare for SDR and SFDR 2?
Real estate fund managers need to address the challenges presented by UK and EU disclosure regulations relating to sustainability: a dual regulatory horizon.
From July 2024 the UK Sustainability Disclosure Requirements (SDR) regime has been mandatory for UK-authorised funds for UK retail investors.
Since March 2021 the Sustainable Finance Disclosure Regulation (SFDR) applies to any fund marketed to EU investors, including non‑EU funds. The SFDR regime is now being reviewed by the EU regulators - with the prospects of significant reforms: in particular, SFDR Article 6, 8 and 9 disclosure requirements being replaced by SFDR 2.0 product labels, expected to take effect in 2028 or onwards.
How should the managers strategically prepare for SDR and SFDR 2.0?
What are the key data and other expectations as well as, with SFDR 2.0, timelines?
How can compliance with the regulations, meeting investor expectations as well as other market drivers assist with:
- attracting capital;
- portfolio alignment and progressing with much needed transition “stranded to green” strategies; and
- achieving positive social impact associated with the built environment in addition to delivering on financial returns?
