Sweep for SFDR

Unlock SFDR Compliance: Transforming regulations into opportunities

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Meet Sweep for SFDR

We help you comply with the Sustainable Finance Disclosure Regulation (SFDR) and report on Principal Adverse Impacts (PAI) in a matter of weeks.

The SFDR in a nutshell

The SFDR is a groundbreaking European Union regulation aimed at increasing transparency and promoting sustainable investment practices. It requires financial market participants and advisors to disclose information about their sustainability policies, the integration of environmental, social, and governance (ESG) factors, and the potential adverse impacts of investments on sustainability.

Sweep’s expert team is here to guide you through the intricacies of the SFDR, providing clear guidelines on how it applies to your organization, the actions you need to take step by step, and how you can make the most of compliance.


A handy summary of SFDR FAQs including details on entity-level and product-level disclosures.

Read it here

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An outline of the key differences between the UK SDR and the EU SFDR. 

Take a look

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SFDR Preparation

A free webinar on 29 June, 2023. Learn how to get ESG data ready for compliance.

Sign up here

Does the SFDR apply to you?

The SFDR applies to a broad spectrum of financial organizations operating within the European Union. This encompasses various entities such as asset managers, fund managers, investment firms, insurance companies, pension funds, banks, financial advisors and other financial service providers.

Additionally, it's important to note that the SFDR applies to investment managers and advisors who market their products within the European Union, regardless of their geographical location.

Sweep is your one-stop-shop for ensuring SFDR compliance

Accelerate your compliance

Sweep app: Compliance status

Ensure full compliance with SFDR in a matter of weeks.

Save valuable time

Sweep app: Performance measurements

Significantly reduce audit preparation time with automated controls and easy access to supporting documentation.

Foster strong stakeholder engagement

Sweep app: progress status

Strengthen stakeholder relationships through proactive engagement and transparent reporting.

Track progress in real-time

Sweep app: Improve data action

Get a live overview of your SFDR compliance progress and make sure you're 100% compliant with the mandatory metrics.

Empower your investment strategy

Sweep app: Carbon intensity charts

Make investment decisions that align with your ESG goals and strategy.

Get on-track

Sweep has everything you need to be on-track with your ESG regulatory requirements. We also have a robust platform to support you on your decarbonization journey. See all features on our Platform page.

All features

SFDR Compliance expertise at your fingertips

  • 👍 Ease of use

    Map PAI metrics requirements, and automate data collection and calculation for your portfolio companies.

  • 🕵️‍♀️ Turnkey reporting

    Easily create your PAI statement and export it in the mandatory format.

  • 🔒 Data security

    We’re SOC2 compliant and ISO 27001 certified. Learn more about security

  • 🎒 Education

    Access our Sweep School to improve your stakeholders’ understanding of SFDR compliance and PAI reporting.

  • 🔎 Transparency

    Keep a clear audit trail, with documents and descriptions for your data stored right in Sweep.

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    Explore our materials to learn more about SFDR

    The European Commission’s responses to SFDR questions
    What is the Sustainable Finance Disclosure Regulation (SFDR)?
    The UK SDR vs EU SFDR – What financial organisations should know

    The SFDR introduces key requirements that financial market participants must adhere to. 

    At Level 1, SFDR mandates the disclosure of ESG (Environmental, Social, and Governance) information, including how sustainability risks are integrated into investment decisions, the adverse impacts of investment decisions on sustainability factors, and the alignment with sustainability objectives. 

    Level 2 measures provide more specific rules on how to implement these disclosures, such as the content, methodology, and presentation formats.

    Read more here.

    Under the SFDR, Principal Adverse Impacts and Risks are two key concepts that financial market participants need to consider.

    Principal Adverse Impact (PAI) – this refers to a significant negative effect that an investment, product, or service can have on sustainability factors. It includes adverse impacts on the environment (e.g. through greenhouse gas emissions) and society (e.g. human rights violations). Financial market participants are required to disclose information about these impacts, such as their methodologies for assessing and monitoring them.

    Sustainability Risk – a potential adverse effect on the value of investments caused by environmental, social, or governance factors. These ESG risks can include climate change, resource depletion, social inequality, and corporate governance issues. Financial market participants must ensure that every sustainability risk is integrated into their investment decision making process.

    Product classifications play a crucial role under the Sustainable Finance Disclosure Regulation (SFDR) in providing transparency and guiding investors in their sustainable investment choices. The SFDR introduces three product classifications.

    Article 6 financial products are those that do not promote environmental or social characteristics explicitly. 

    Article 8 products are those that promote environmental and social characteristics, but do not have sustainable investment as their primary objective. 

    Article 9 products are those with sustainable investment as their explicit objective, demonstrating a high degree of sustainability. 

    By adhering to the SFDR's product classifications, financial market participants can enhance transparency, promote sustainable finance, and meet the evolving demands of responsible investing.

    By following these steps, organizations can proactively prepare for the SFDR and meet their obligations under the regulation:

    • Understand the scope: Familiarize yourself with the SFDR disclosure requirements and determine if your organization falls within its scope based on your role as a financial market participant.

    • Establish governance and responsibility: Assign clear ownership and accountability within your organization for compliance with the SFDR, ensuring that relevant departments and stakeholders are involved.

    • Enhance data collection: Implement robust systems to gather and manage relevant data from your portfolio companies. Find the right software provider to help you streamline the data collection process. 

    • Develop SFDR reporting frameworks: Create standardized reporting frameworks and templates to capture the necessary information required by SFDR, ensuring consistency and accuracy in your disclosures and accounting for compliance gaps.

    • Train and educate staff: Conduct training programs to enhance staff awareness and understanding of SFDR obligations, ensuring that relevant employees are equipped with the knowledge and skills needed for compliance.

    • Monitor and review: Establish a monitoring and review process to assess the effectiveness of your compliance efforts and make adjustments as needed to ensure ongoing compliance.

    Find out more with Sweep’s Guide to SFDR Compliance.

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